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Overview

Chinese investors fund Phase 1 of Cement Factory Construction in Tanzania

Commitment Year2018Country of ActivityTanzaniaDirect Recipient Country of IncorporationTanzaniaSectorIndustry, Mining, ConstructionFlow TypeVague TBD

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2018
Start (planned)
May 1, 2017
End (planned)
Jan 1, 2020

Stakeholders

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

Funding agencies

Government Agencies

  • Unspecified Chinese Government Institution

Receiving agencies

Government Agencies

  • Government of Tanzania

Implementing agencies

State-owned companies

  • Sinoma International Engineering Co., Ltd.

Loan desecription

Chinese investors fund Phase 1 of Cement Factory Construction in Tanzania

Narrative

Full Description

Project narrative

On March 1, 2017, Tanzania's government announced that unnamed Chinese investors had agreed to help fund the construction of a cement factory in the coastal city of Tanga. The project is to be completed by Sinoma International Engineering in two parts, with phase 1 costing an estimated $1 billion USD. 70% of cement produced at the plant will be exported to local countries including Somalia, Kenya, Mozambique, Sudan, the Democratic Republic of Congo and Uganda. The project will also include a wharf for the factory to assist export. The work on the factory and the wharf was expected to start May 2017. On January 18, 2018, 17 Chinese companies had a business negotiation with the Tanzanian government to invest and build the Hibernia cement commercial plant project at an estimated cost of $3 billion USD. The cement plant is estimated to have an annual output of 7 million tons, and generate 1,200 MW of power annually. After completion, it will be the largest cement plant in East Africa, with the largest annual output. The plant will create 4,000 to 8,000 jobs for Tanzanians. The Minister of Industry and Trade of Tanzania went to the meeting, stating that he hoped construction would start as soon as possible and that the project would be completed by 2020.