Chinese Government provides RMB 8.9 million grant — via ETCA — for Standard Gauge Railway Feasibility Study

On May 19, 2018, the Chinese Government and Tanzania’s Ministry of Finance signed an Economic and Technical Cooperation Agreement (ETCA), which committed RMB 409 million (TZS 146.47 billion) of grant funding for multiple projects.

The Tanzanian Permanent Secretary Ministry of Finance and Planning Dotto James and the Chinese Ambassador to Tanzania Wang Ke signed the agreement.

The grant proceeds were allocated to three different projects: (1) approximately RMB 386,186,249 (TZS 138.3 billion) for the National Institute of Transport (NIT) University of Transport Construction Project (captured via Record ID#59603); (2) approximately RMB 8,935,618 (TZS 3.2 billion) for a Standard Gauge Railway Feasibility Study (captured via Record ID#59605); and (3) approximately RMB 8,991,465 (TZS 3.22 billion) for general budget support to the Tanzania Railways Corporation (captured via Record ID#88323).

The feasibility study for the Standard Gauge Railway was reported as having been complete by June 7, 2018, but the precise completion date is unknown.

It determined that the project to extend the Standard Gauge Railway (SGR) line to Mtwara, Tundulu, Songea and up to Mbamba Bay would have to be done in two phases, and it also estimated the total project cost.

Prime Minister Kassim Majaliwa later stated that the Government of Tanzania would search for financiers for the project.