Tanzania has finalized a $2.15 billion agreement with two Chinese companies to build a railway that will connect its primary port in Dar es Salaam to a nickel mine in Burundi.
The contracts were awarded by Tanzania Railways Corp. to China Railway Engineering Group Ltd. and China Railway Engineering Design and Consulting Group Co.
Transport Minister , Makame Mbarawa emphasized that this project is a realization of a bilateral agreement between Tanzania and Burundi, aimed at enhancing the export of vital minerals and boosting cross-border trade.
Financing for the 282-kilometer (175-mile) Uvinza-Musongati standard gauge railway will be provided by the African Development Bank through a concessional loan, marking a significant milestone in the bank's involvement in Tanzania's railway initiatives, as said by Finance Minister Mwigulu Nchemba.
The railway projects are part of a broader strategy to stimulate economic growth, improve transportation of goods, and create job opportunities for Tanzanians, ultimately enhancing investment, education, and tourism in the region.