Tanzania has signed a $2.2 billion contract with Chinese firms to construct a railway from Dar es Salaam to a nickel mine in Burundi. The project aims to enhance nickel exports and cross-border trade, supported by a concessional loan from the African Development Bank. The railway will lengthen 282 kilometers and is expected to transport 3 million metric tonnes of ore per year.
Tanzania has entered into a $2.2 billion agreement with two Chinese companies to construct a standard gauge railway linking the port city of Dar es Salaam with a nickel mine in Burundi. The selected contractors, China Railway Engineering Group and China Railway Engineering Design and Consulting Group, will oversee this critical infrastructure project through Tanzania Railways. According to Tanzania’s transport minister, Makame Mbarawa, this initiative stems from a bilateral agreement between Tanzania and Burundi, aimed at enhancing the efficiency of nickel exports and facilitating cross-border trade between the two nations.
The railway line will stretch across 282 kilometers, commencing from Uvinza in Tanzania, situated near the Burundi border, to Musongati in Burundi, where substantial nickel, gold, platinum, palladium, copper, and iron deposits are located. Notably, the nickel market has experienced significant price fluctuations, doubling from under $10,000 per tonne in 2016 to nearly $20,000 currently, as it finds applications in stainless steel, electric vehicle batteries, and desalination technologies. Upon completion, the railway is projected to transport approximately 3 million metric tonnes of ore annually.
Funding for the railway project will be provided by the African Development Bank through a concessional loan. Tanzania’s finance minister, Mwigulu Nchemba, emphasized the significance of this initiative, stating, “This is a very significant moment because it marks the first foray of the bank into the financing of our railway projects.” The project not only represents a major investment in infrastructure but also highlights international cooperation in enhancing regional trade links.
The construction of the railway link is a strategic move for Tanzania to boost its export capabilities and strengthen trade relations with Burundi. This collaboration between the two nations aims to facilitate more efficient transport of valuable minerals and enhance economic integration in the region. The selection of Chinese contractors reflects ongoing partnerships between African countries and Chinese firms in infrastructure development, leveraging external financial resources to meet local development needs.
In summary, Tanzania’s collaboration with Chinese firms to develop a railway linking Dar es Salaam and Burundi represents a significant advancement in regional trade and infrastructure. This initiative is expected to enhance the transportation of mineral resources, particularly nickel, while promoting economic ties between the two countries. The financial backing from the African Development Bank further signifies the importance of this project in facilitating growth and investment in East Africa.
Original Source: www.globalconstructionreview.com
