Bank loan

Tanzania to receive 1.27 trillion shillings World Bank loan to unlock infrastructure bottlenecks

By The Citizen Reporter

Dar es Salaam. Tanzania will receive a $550 million (1.27 trillion shillings) loan from the World Bank to address critical bottlenecks in the country’s roads and airports.

The Bank’s new International Development Association (IDA) financing for the Tanzania Transport Integration Project (TanTIP) will also involve strengthening Tanzania’s role as a transit country and leveraging more effectively of its national parks for tourism.

This is according to a statement from the World Bank and made available to The citizenwhich indicates that the TanTIP aims to improve the safety, climate resilience and capacity of major road corridors and regional airports.

The fund will also contribute to improving the capacity of relevant institutions in the transport sector to plan and manage the sector.

Therefore, it was noted that the said loan will focus on three key components such as the improvement and rehabilitation of about 500 km of roads.

These include the Mtwara-Mingoyo-Masasi (201 km), Lusahunga-Rusumo (92 km), Songea-Rutukila (111 km) and Iringa-Msembe (104 km) roads while integrating climate resilience measures to strengthen the resilience and adaptation of these roads and road network.

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TanTIP highlighted that the second component would be to upgrade and rehabilitate three priority regional airports, which include Lake Manyara, Iringa and Tanga airports; with a focus on improving airport safety and capacity, and improving climate resilience.

According to the WB, although the civil aviation sector is a key facilitator for tourism, it is at an early stage of development with significant growth potential. In fact, the country is served by several international airlines mainly using three international airports.

Currently, regional airports do not have sufficient capacity to accommodate larger aircraft and accommodate many passengers, but as per capita income increases, the demand for air travel is also expected to continue.

Additionally, the World Bank argues that the lack of airport infrastructure is a constraint to unlocking the economic potential of local economies, especially those that would benefit from increased traffic to currently underutilized national parks.

For example, the current state of most of the country’s airport infrastructure is poor. In fact, the air transport infrastructure includes more than 300 airports and airstrips, except for the three international airports and the other 15 major domestic airports which have paved runways, all other airports have gravel runways and budding.

In addition, the document unveiled the third element for which the funds are intended, continued support for institutional capacity development.

Said support would focus on climate risk management and security, encouraging gender balance with greater inclusion and career development opportunities for women, supporting implementation, management and monitoring projects.

Mara Warwick, Country Director of the Bank, said: “Much of Tanzania’s development success over the past decade has been based on the key advantages of its strategic maritime location, rich and diverse natural resources, its socio-political stability and rapid growth. tourism industry.”

Therefore, he said, “Investments under this project will contribute to the government’s broader efforts to improve the integration of the Tanzanian economy and its connection with its neighbors and global markets, while ensuring the adaptability of the infrastructure”.

On the other hand, Mr. Gylfi Palsson, Senior Transport Specialist of the World Bank, said: “The design of roads and airports under TanTIP takes into account the climate, ensuring the adaptability of road corridors and airports. regions to future natural disasters”.

According to him, the project will strengthen mitigation measures and integrate climate resilience considerations into the planning, investments and management of the national road transport sector.

It is also noted that the project will directly benefit many communities and businesses, including smallholder farmers, agribusiness operators, existing and potential private sector investors, importers and exporters.

It will also have broader positive impacts on development outcomes such as economic well-being, social inclusion (jobs, gender), equity (poverty, inequality), environmental quality and economic resilience. .

The World Bank’s IDA was established in 1960 to help the world’s poorest countries by providing grants and loans at low or no interest rates for projects and programs that stimulate growth. economy, reduce poverty and improve the lives of the poor.

World Bank reports indicate that IDA is one of the largest sources of aid for the world’s 74 poorest countries, 39 of which are in Africa.

IDA resources are said to bring positive change to the 1.3 billion people who live in IDA countries, including Tanzania.

Since 1960, IDA has provided $458 billion to 114 countries. Annual commitments averaged around $29 billion over the last three years (FY19-FY21), of which around 70% went to Africa.