Africa Cooperation Development DFI Finance Government Infrastructure Tanzania

Tanzania, South Korea sign deal over US$300M concessional loans

The governments of Tanzania and South Korea on Tuesday signed a framework arrangement that will enable Tanzania to access concessional loans from the latter’s Economic Development Cooperation Fund (EDCF) to a maximum of US$300M to finance development projects.

The agreement was signed in the commercial capital Dar es Salaam between the permanent secretary of the Ministry of Finance and Planning, Doto James, and Cho Tae-Ick, the South Korean ambassador to Tanzania.

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James said the loan will be used to finance the implementation of four projects, including the construction of two substations for Kigoma-Nyakanazi power transmission line, the construction of the New Selander Bridge in Dar es Salaam, the improvement of national land data infrastructure and the improvement in sewerage services in the capital Dodoma.

James added that the loan will be used for government budget support to fill the government budgetary gap caused by the COVID-19 pandemic.

Source: Xinhuanet

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