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AfDB, Tanzania sign over 150 mln USD loan agreements to support development projects: official

Source: Xinhua| 2018-11-16 00:39:51|Editor: Mu Xuequan
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DAR ES SALAAM, Nov. 15 (Xinhua) -- The African Development Bank (AfDB) on Thursday signed three agreements amounting to 156 million U.S. dollars with the government of Tanzania to support major development projects, said a senior official.

Speaking shortly after the signing of the agreements in the commercial capital Dar es Salaam, Tanzania's Permanent Secretary in the Ministry of Finance and Planning, Dotto James, said the AfDB loans had favorable conditions.

He said out of the 156 million U.S. dollars loan, 123 million U.S. dollars were earmarked for the construction of the North-West electricity transmission line, 13 million U.S. dollars for an initiative to prevent aflatoxins contamination in grains and 20 million U.S. dollars for the Global Agriculture and Food Security Program.

"The loans from the AfDB have friendly terms. Their interest is almost zero and the loan repayment period is 40 years," said James.

Alex Mubiru, the AfDB Country Manager, said the North-West power transmission line was intended to improve power supply in Kigoma region at lower energy production costs.

"This will relieve Tanzania Electric Supply Company of a financial burden of about 9.44 million U.S. dollars spent annually on running diesel power generators in Kigoma and Kasulu," said Mubiru.

This year, the AfDB has signed loan agreements amounting to 213.4 million U.S. dollars to support key projects in the nation.

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