THE African Development Bank (AfDB) has approved $US 696m in financing for the second phase of the new Tanzania - Burundi Standard Gauge Railway.
AfDB will provide $US 98.62m in grants to Burundi and $US 597.79m as loans and guarantees to Tanzania. AfDB will also continue to raise $US 3.2bn of the estimated total $US 3.93bn cost of this phase of the new railway.
This second phase consists of a new 651km section from Tabora in central Tanzania to Musongati in Burundi. This will be subdivided into three lots: the 411km Tabora - Uvinza - Kigoma and the 156km Uvinza - Malagarasi sections in Tanzania; and the 84km Malagarasi -Musongati section in Burundi.
Burundi, the poorest country in the world by GDP per capita, stands to gain the most from the new electrified single-track railway, which will replace the old metre-gauge line between Tabora and Kigoma on Lake Tanganyika.
The standard gauge line will support speeds of up to 160km/h and will serve the world’s 10th largest nickel deposit, which is located in the Musongati area. The line is also expected to enable Burundi to exploit its deposits of much-coveted metals such as lithium and cobalt, which are likely to generate large incomes. Both the East African Community (EAC) and the African Union have consequently named the railway one of their top priorities.
The 400km Dar es Salaam - Dodoma line is under construction. The first section has been completed from Dar es Salaam as far as Morogoro and test running with electric locomotives is currently under way.
New line
Separately, Tanzania Railways Corporation has announced plans to build another cross-country railway, from the coast to Malawi. This 1000km railway will serve industries across the region, which is rich in iron ore, coal, and graphite.
The railway will cost an estimated $US 5.6bn, of which Tanzania Railways Corporation has already secured almost half from private investors.
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