Tanzania secures loan from China for gas pipeline construction
Friday, 07 September 2012 13:22
Tanzania has secured a US$1.2bn loan from China to finance the construction of a 230km natural gas pipeline linking Mtwara gas fields and Dar es Salaam
The agreement was signed in Dar es Salaam last week in the presence of Tanzania Prime Minister Mizengo Pinda and the visiting Chinese Vice Premier Hui Liangyu at the Prime Minister’s office in Dar es Salaam.
The agreement was signed by the finance minister, William Mgimwa, and the deputy president of EXIM Bank of China, Li Jun.
Pinda said Tanzania wanted to take advantage of the offer by China by providing an outlay of US$20bn credit line to African countries to assist them in developing infrastructure, agriculture, manufacturing and medium-size enterprises.
The Chinese offer was announced by President Hu Jintao during ministerial meeting of the Fifth Forum on China-Africa Cooperation (FOCAC) held in Beijing. Prime Minister Pinda said Tanzania has drawn a list of priority projects and it would be delivered to China to be able to secure funds.
He thanked the Chinese government and the people of China for the support and assistance extended to Tanzania over the years.