Tanzania has signed a 20-year $ 1.5 billion loan agreement with Standard Chartered Bank of Tanzania to fund the construction of a 550-kilometre (SGR) standard gauge railway between the commercial center and the port of Dar es Salaam and Matukupora.

The Tanzanian Ministry of Finance and Planning and the Standard Chartered Bank of Tanzania said the loan coordinated by the bank was the largest loan ever undertaken by the ministry. The main funders are Danish and Swedish export credit agencies.

Tanzanian Finance Minister Philip Mpango said at the signing ceremony: "With the help of Standard Chartered Bank and other partners, project financing will further increase direct employment in Tanzania, and more importantly, enable local communities to thrive and gain access to Broader social services, such as food and housing. I want to thank the governments of Sweden and Denmark. These two countries have shown us their true friendship not only in language but also in action. Ask your country ’s export credit agencies and lenders Express our sincere gratitude. "

Other donors for the loan were the Southern African Development Bank, the Trade and Development Bank and the African Export-Import Bank.

Over the next five years, the railway line is part of a $ 14.2 billion plan to build about 2,500 kilometers of standard gauge railway lines in China. The aim is to reduce road congestion and reduce freight costs by 40%. It is estimated that each freight train can transport up to 10,000 tons, equivalent to 500 trucks. It also connects Tanzania with Burundi, Rwanda and the Democratic Republic of the Congo to promote regional integration. Editor / Zhao Yongjing