The World Bank Group is recognizing Tanzania’s strong macroeconomic management, political stability and growth opportunities by scaling up its resources for the country, World Bank Group President Jim Yong Kim revealed.
The country will be able to access up to $2.4 billion in concessional loans and additional resources on non-concessional terms that are lower than market rates over the next three years.
The additional resources will come from the Bank’s International Development Association (IDA) which funds the world’s poorest countries.
In December 2016, the IDA received a record 18th replenishment of $75 billion, $45 billion of which will be invested in Africa over the next three years.
Tanzania will allocate some use the funds, an increase of half a billion dollars more than previous allocations, to the Ubungo Interchange in Ubungo District of Dar es Salaam whose total value is $780 million.
“Investing in infrastructure has a significant multiplier effect, spurring growth in subsequent years,” the World Bank Group Chief said.
Kim urged greater public and private sector collaboration to achieve the aspirations of developing countries which have investment opportunities in sectors such as infrastructure.
He was speaking as he and Tanzania’s President John Maghufuli laid the foundation stone for the Ubungo Interchange which is designed to reduce congestion in Dar es Salaam, the Port City with a population of 4.4 million and a growth rate of 6.5 per cent annually.
It is expected to improve travel time and reduce costs for commuters and commercial consumers as well as connect the Port City to rural Tanzania, industries and the wider East African region.
The Interchange will be constructed under the Dar es Salaam Urban Transport Project (DUTP) as a follow-up investment to the Second Central Transport Corridor (CTCP2) financed by the World Bank.
Kim and Magufuli signed the financing agreements for the $225 million Second Water Sector Support Project (WSSP2) which will support the strengthening of capacities for integrated water resources planning and management in Tanzania and improve access to water supply and sanitation services in Dar es Salaam.
They also signed a $130 million additional financing for the Tanzania Strategic Cities Project which will finance an upscale of infrastructure in eight cities across Tanzania.