Mr. Sang-wan, Byun, Vice President of the EXIM Bank of Korea, Members of the Press, Distinguished Guests, Ladies and Gentlemen:
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1 STATEMENT BY HON. MUSTAFA HAIDI MKULO (MP.), MINISTER FOR FINANCE ON THE OCCASION OF SIGNING TWO AGREEMENTS BETWEEN THE GOVERNMENT OF THE UNITED REPUBLIC OF TANZANIA AND THE EXIM BANK OF KOREA AT THE TREASURY CONFERENCE ROOM, MINISTRY OF FINANCE, OCTOBER 11, 2011 AT 11:00 AM. Mr. Sang-wan, Byun, Vice President of the EXIM Bank of Korea, Members of the Press, Distinguished Guests, Ladies and Gentlemen: Allow me, first of all to express my delight to have this opportunity of signing with you these two Loan Agreements under which the EXIM Bank of Korea will provide USD 63,416,000 equivalent to Tanzania Shillings billion to co-finance the Iringa Shinyanga Backbone Transmission Investment Project and the Medical Equipment Supply and Installation for Muhimbili University of Health and Allied Sciences (MUHAS) Medical Center Project. I would like to thank you and your Bank for having been able to participate in financing these important projects. Your Bank s involvement in 1
2 these projects signifies the importance that you attach to the socio-economic development of our country. Ladies and Gentlemen, what we have just signed today is a result of a great deal of team work efforts that involved the EXIM Bank of Korea, TANESCO, MUHAS, and the Government. I would also like to thank them all for their joint efforts that have made it possible for these financing agreements to be signed today. Ladies and Gentlemen, The first Agreement is for financing part of the Iringa-Shinyanga Backbone Transmission Investment Project at an estimated cost of USD 36,416,000 (Thirty Six Million Four Hundred Sixteen Thousand US Dollars) equivalent to Tanzania Shillings billion. The objective of the project is to increase availability, reliability and quality of grid based power supply to the northern regions of Tanzania, through the construction of additional backbone transmission lines connecting Iringa Shinyanga and the expansion of the associated substations at Iringa, Dodoma, Singida and Shinyanga. The implementation of this project will stimulate economic growth and therefore contribute towards improvement of living standards of our people in the Northern Regions of Tanzania. 2
3 Ladies and Gentlemen, Energy deficit is one of the main constraints to socio-economic development and transformation that Tanzania is facing. The loan provided under this agreement is therefore well targeted and timely. The importance of this project cannot be overemphasized. When completed, this project will significantly reinforce the entire backbone transmission grid system in Tanzania as it will interconnect four substations at the Iringa, Dodoma, Singida and Shinyanga towns through a 667 km 400KV double circuit transmission line. This new 667 km long power line from Iringa to Shinyanga will link existing and future generating sources in the south to northern Tanzania, currently experiencing strong economic growth and therefore increased demand for electricity due to increasing mining and industrial activities. The proposed project will also facilitate future interconnections with neighboring countries of Kenya in the north and Zambia in the south thus, strengthening regional economic cooperation and development. Ladies and Gentlemen, given the magnitude and importance of the project, the need for its effective management cannot be ignored. I strongly urge TANESCO to work closely with all the financing parties and contractors 3
4 in order to ensure that the project is implemented successfully. I believe that the outcomes of successful implementation of the project will lead to significant improvement in energy efficiency and productivity and also reduce power losses. This will also help improving TANESCO s financial position, which is crucial for timely servicing and repaying the loan. The second Agreement is for financing the second Phase of the Development of Muhimbili University of Health and Allied Sciences (MUHAS) Medical Center Project. The cost of the project is estimated at USD 27 million, equivalent to Tanzania Shillings billion. The proposed project will involve supplying hospital equipment and installation for MUHAS teaching hospital at Mloganzila. Mr. Sang-wan Byun, as you may recall, the EXIM Bank of Korea through its EDCF has also supported several ongoing projects in Tanzania, namely the establishment of Vocational Training Centers in Dar Es Salaam, Lindi, Coast and Manyara Regions (USD 18 million); the Malagarasi Bridge and associated roads project Lot I (USD 25 million). These projects are at different stages of implementation. I am also pleased to inform you that preparations for starting three newly concluded projects are going on well. 4
5 The three concluded projects are Muhimbili University of Health and Allied Sciences (MUHAS) Hospital construction project, (USD 49,500,000), Arusha Kilimanjaro Transmission Line Project under Tanzania Energy Development and Access Expansion-TEDAP (USD 25,000,000), Improvement of Water Supply System in Dodoma Town including Dodoma University (USD 49,623,000). Mr. Sang-wan Byun, I would like to take this opportunity to reaffirm my Government s commitment towards implementation of these projects and I want to assure you that the Government will make close monitoring to ensure that the design and quality of work meets acceptable professional standards, Ladies and Gentlemen, let me conclude my short statement by reiterating my Government s Commitment to maintaining and promoting further, the partnership and friendly relationship that exists between the Government of Tanzania and the EXIM Bank of Korea. Thank you very much for your kind attention. 5
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