Kuwait fund lends $51m to Tanzania for road works
The project involves the construction of 85km of the Nyahua-Chaya Road section, which is part of the Dar Es Salaam-Kigoma Corridor
Kuwait will lend $51m (KWD15m) to Tanzania to assist in the construction of a road project in the country.
Kuwait Fund for Arab Economic Development (KFAED) signed the loan agreement with Tanzania to finance the Nyahua-Chaya Road project.
Hamad Al-Omar, KFAED's deputy director-general signed the agreement with Dr Philip I Mpango, minister of finance and planning (MP) of Tanzania.
The project involves the construction of 85km of the Nyahua-Chaya Road section, which is part of the Dar Es Salaam-Kigoma Corridor.
The loan will cover approximately 78% of the total cost of the project, while the remaining costs of the project, as well as any increase that may arise, will be covered by the Tanzanian government, according to a company statement.
The loan will mature over a period of 27 years, which includes a grace period of five years, and will be repaid in 44 semi-annual installments.