The African Development Bank (AfDB) has approved financing worth €637 million (US$696.41 million) for the construction of 651 km of railway infrastructure in Burundi and Tanzania. The financing is part of Phase 2 of the joint Tanzania – Burundi – DR Congo Standard Gauge Railway (SGR) project and includes the extension of an electrified standard-gauge line divided into three sections. In Tanzania, the financing comprises the 411 km Tabora – Kigoma line and the 156 km Uvinza – Malagarasi line, in Burundi the 84 km Malagarasi – Musongati line. These lines will be connected to the existing Tanzanian railway network and provide access to the port of Dar es Salaam. The bank is providing €90 million to Burundi in the form of grants and €548 million to Tanzania in the form of loans and guarantees. The total cost of the project in both countries is estimated at almost €3.93 billion. As Initial Mandate Lead Arranger (IMLA), the AfDB will structure and mobilise financing of up to €3.2 billion from commercial banks, development finance institutions, export credit agencies and institutional investors. The project is part of the East African Community's Railway Master Plan and the African Union's Infrastructure Development Programme for Africa and aims to facilitate economic and social transformation in both countries and the region.
