Tanzania, Standard Chartered Bank Sign $1.46 Billion Loan to Fund Rail Project
February 14 2020 - 5:10AM
Dow Jones News
By George Mwangi
Special to Dow Jones Newswires
The Government of Tanzania and the Standard Chartered Bank have
signed a $1.46 billion loan to fund the construction of a rail
project in the east African nation.
The nearly 550-kilometer-long standard-gauge rail project will
connect the Indian Ocean port of Dar es Salaam to Dodoma, the
administrative capital, the bank said in a statement Friday.
Construction of the first phase of the project, about 200
kilometers from the Dar es Salaam to Morogoro, started in 2017 and
is expected to be completed by April this year.
"We are delighted to have reached this milestone in Tanzania to
fund the SGR project that will deliver massive benefits to Tanzania
and support the government's 2025 vision of making Tanzania an
industrialized country," Sanjay Rughani, chief executive officer,
Standard Chartered Tanzania, said.
The new railway is expected to ease congestion at the port and
decrease freight-service charges by 40%, as the railway will haul
up to 10,000 tons of freight, equivalent to 500 lorries per trip,
according to the Tanzania Railways Corp.
"For Standard Chartered, Africa remains a priority for our
business and clients, and we are proud to be able to use our
expertise to support the Government of Tanzania with the finance
needed for the SGR project," said Sunil Kaushal, regional chief
executive officer, Standard Chartered Africa and the Middle
East.
The railway will also connect Tanzania to Burundi, Rwanda and
Congo, enhancing regional trade, the statement said.
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
February 14, 2020 04:55 ET (09:55 GMT)
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