Overview

China Eximbank pledges to loan $7.6 billion USD for the Tanzania Standard Gauge Railway Network (Linked to Record ID#67661)

Commitments (Constant USD, 2023)$8,289,483,953

Commitment Year•2016Country of Activity•TanzaniaDirect Recipient Country of Incorporation•TanzaniaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jul 20, 2016

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

Tanzania Ministry of Finance and Planning

Implementing agencies

State-owned companies

China Railway Materials Group Corporation

Loan desecription

China Eximbank pledges to loan $7.6 billion USD for the Tanzania Standard Gauge Railway Network (Linked to Record ID#67661)

Interest type•Unknown

Narrative

Full Description

Project narrative

On July 20, 2016, China Eximbank pledged to provide a concessional loan of $7.6 billion USD for the construction of the Standard Gauge Railway (SGR) line in Tanzania. The Government of Tanzania planned to provide counterpart financing and had already allocated 1 trillion TZS (about $450 million USD) for the 2016/17 financial year. China Railway Materials was originally going to serve as the contractor responsible for project implementation, but was later taken off the project due to allegations of corruption. After this company was taken off the job, China Eximbank also backed out of the deal. The SGR was meant to unlock major trade opportunities between Tanzania and its landlocked neighbors of the Democratic Republic of Congo (DRC), Rwanda and Burundi. This project was to be carried out in multiple phases with multiple contractors. China Eximbank allocated just $7.9 million USD for the Morogoro-Makutupora portion of this network (Record ID#67661) but of course this deal was suspended as well.