Turkish firm lands $1.9B deal to build standard railway in Tanzania

DAR ES SALAAM, Tanzania

A Turkish construction firm on Tuesday secured a lucrative deal to build a 368-kilometer (229-mile) section of standard gauge railway line linking the largest port city in Tanzania with the hinterland, in a move highlighting confidence in its work.

The deal, which is expected to cost $1.9 billion is part of three out of four deals the company has so far clinched from the Tanzanian government as part of its broader push to finish a 1,219-kilometer (757-mile) railway line which is expected to unlock trade potential with the landlocked countries of Rwanda, Burundi and Uganda.

Officiating the contract signing ceremony between Tanzania Railways Corporation head Masanja Kadogosa and Turkish construction firm Yapi Merkezi Deputy Chair Erden Arioglu on Tuesday, President Samia Suluhu Hassan said the 368-km stretch from Makutupora in the capital city Dodoma to Tabora would be built with borrowed money.

"We will find friendly loan facilities and the best ways to get loans. We won't get this money from levies or from domestic taxes," she said.

The project is part of the central corridor which will connect Uganda, Rwanda, Democratic Republic of Congo and Tanzania and provide access to Indian ocean for all related.

Kadogosa said the stretch will link Makutopora with the historical town of Tabora, in the country's central region and unlock potential for trade.

According to Yapi Merkezi officials, the railway line will establish a safe and reliable transportation between Dar es Salaam and other parts of the country.

After its completion, the railway is expected to bolster the overall economy of Tanzania especially in the field of trade and tourism, officials said.

According to Prime Minister Kassim Majaliwa, the use of rails instead of road transport will serve to reduced costs and save roads from destruction by heavy vehicles and conserve the environment.