Home Business Tanzania-Burundi SGR line gets $696m boost from AfDB

Tanzania-Burundi SGR line gets $696m boost from AfDB


Construction of the second phase of a Standard Gauge Railway between Tanzania and Burundi is expected to begin after the two countries secured $696.41 million (Ksh 106.6b) loan from African Development Bank (AfDB).

The funding will support the construction of 651 kilometers on the Tanzania-Burundi railway which forms part of the Joint Tanzania-Burundi-DR Congo Standard Gauge Railway (SGR) Project.

Channel 1

“The Bank Group will provide $98.62 million to Burundi in the form of grants and $597.79 million to Tanzania in the form of loans and guarantees,” said AfDB.

The project which is part of the Central Corridor transport network will also connect to existing railway network in Tanzania and access to the port of Dar es Salaam.

Tanzania has already constructed 400km of SGR from Dar es Salaam to Dodoma since the start of the first phase of the project.

The rest of the section from Dodoma to Tabora is under construction. Phase two of the project which will run from Tabora to Musongati in Burundi will consist of the development of a single electrified standard gauge track.

AfDB plans tp mobilize up to $3.2 billion from other lenders and institutional investors to finance the $3.93 billion SGR project.

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