Tanzania secures $1.46 bn in debt for railway construction from Standard Chartered



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Tanzania secures $1.46 bn in debt for railway construction from Standard Chartered

Late on Thursday, the 13th of February 2020, the Finance and Planning Ministry alongside the London-based lender Standard Chartered Bank Tanzania had issued a joint statement saying that Tanzania, the east-Africa’s second-largest economy known for its vast wilderness had rubber stamped a sum of $1.46 billion in new debt agreement with the British lender Standard Chartered, while the new loans would be capitalized on financing the planned construction of a 550 kilometre standard gauge railway that would be transferring passengers between its commercial capital and other cities of Central Tanzania.

In point of fact, Tanzania’s latest move to secure a $1.46 billion in new loans came forth as a part of its broad-based plan to replace an existing narrow-gauge railway line built more than a century ago. Concomitantly, back in the 2017s, the east-African country’s Finance Ministry was quoted saying that Tanzania, which recorded an economic growth of 7.2 per cent as of June 30th, 2019, had planned to build roughly 2,561 kilometres of standard gauge railway over the next five years, while the project’s estimated budget was $14.2 billion back then.

Meanwhile, adding that the planned standard gauge railway line would ferry passengers from Dar es Salaam to Matukupora in central Tanzania, Tanzania’s Finance and Planning Ministry alongside Standard Chartered Bank Tanzania said in Thursday’s (February 13th) joint statement, “Standard Chartered Tanzania acted as global co-ordinator, bookrunner and mandated lead arranger on the facility agreement that is the largest foreign currency financing raised by the ministry of finance to date,” adding that a lion-share of the financing was expected to come from export credit agencies from Sweden and Denmark.