THE government of India is set to issue a 178.125 million US dollars (about 285bn/-) credit to assist rehabilitating and improving Dar es Salaam water supply, Indian High Commissioner to Tanzania, Mr Debnath Shaw, said on Monday.
Mr Shaw said the second line of credit would be issued by Exim Bank of India to help the country develop water infrastructure in the commercial capital. “Negotiations are still underway, but are likely to be concluded in about a month from now,” Mr Shaw told the ‘Daily News’ on the sidelines of opening of Bank of India Zanaki Street branch.
He said he could not give the transaction details as the negotiations are ongoing but hinted that the package will serve two regions, the other one would be named later. “Once the negotiations are concluded and an agreement is signed, I will give further details as everything is expected to be finalized in a month’s time,” Mr Shaw said.
The High Commissioner said India is committed to assist the country in delivering and improving social services following a long history of good relations. He, however, said more efforts are needed to increase economic and trade ties to at least match the political friendship.
India is Tanzania’s second largest investor. In 2011, when on official visit to Tanzania, India’s Prime Minister, Mr Manmohan Singh, announced a line of credit of 180 million US dollars (about 288bn/-) for development of water supply projects in Dar es Salaam and coastal regions. During the visit, Mr Singh also announced a grant of 10 million US dollars (about 16bn/-) for projects in social and educational sectors, projects which would be identified by Dar es Salaam.
The Indian PM also announced Vocational Training Centre and a grant of 100,000 US dollars (about 160m/-) for Zanzibar for purchase of laboratory equipment for schools. Tanzania is one of the largest beneficiaries of the Technical, Economic and Scientific Cooperation (ITEC) programme, which is an Agreement for Friendship, signed in 1966 between Dar and Delhi.
ITEC cooperation has been extended to Tanzania since 1972. Starting with 24 trainees annually, the number has gradually increased to 200 in 2011. Tanzania and India have traditionally enjoyed close, friendly and co-operative relations. From the 1960s to the 1980s the political relationship was driven largely by shared ideological commitments to anti-colonialism, anti-racism, socialism in various forms as well as genuine desire for South-South cooperation.
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Tanzania: India to Finance Water Project
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