The two agreements were signed in Dar es Salaam yesterday between the government, which was represented by the Permanent Secretary (PS) in the Ministry of Finance and Planning, Mr Doto James; and outgoing AfDB Country Representative, Dr Tonia Kandiero.
In the first agreement, AfDB gave a commitment of 70 million US dollars (over 150bn/-) that will be disbursed to the Tanzania Electric Supply Company Limited (TANESCO) to increase efficiency in the state- owned power firm.
The second 94 million US dollars (over 200bn/-) agreement intends to increase capital to TADB so that it can be able to provide soft loans to farmers -- to increase the value chain from production, value for money and availability of reliable markets for crops produced by farmers.
The lifespan of both agreements is 40 years whereas the government will start servicing the loan after ten years from the date the money will be disbursed. Interest is less than 1 per cent, according to details of the agreements.
Speaking after exchanging documents of the agreements, Mr James said the loan agreement came at the right time, adding that it will help to increase efficiency within TANESCO as well as improving the agricultural sector in the country. “Tanzania has been benefiting more from concessional loans from AfDB compared to other countries in the Southern African Region,’’ said Mr James.
His AfDB counterpart, Dr Kandiero, said the bank had so far provided loans to Tanzania totalling 2 billion US dollars that have been injected in the various development projects, including improvement of infrastructure, water, electricity, education and agriculture.
“I believe by increasing capital to the agricultural bank the country will equally be able to bring agricultural revolution, and we pledge to extend our continued support in future,’’ said Dr Kandiero.
In another development, Finance and Planning Minister Dr Philip Mpango yesterday bid farewell Dr Kandiero, who has been transferred to South Africa as Director General of the Southern Africa Regional Development and Business Delivery Office. The office is aimed at accelerating the bank’s business and development impacts across Africa.
The minister hailed the efforts undertaken by the outgoing AfDB Country Representative to protect the interest of Tanzania for the past six years that she worked in the country.
“During that period, Tanzania has witnessed outstanding changes in various sectors especially the infrastructure, agriculture, water, energy where as AfDB made sure that the projects are implemented to the fullest,’’ she said.
Dr Mpango requested him to help the country in mobilising funds for the construction of a Standard Gauge railway that needs a lot of money. In her response, Dr Tonia said she believed her successor will consider all the good initiatives that are currently in place as well as making important follow-ups in the agreements sealed between AfDB and Tanzania.
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