African Development Bank approves US$696m funding for Central Corridor Network

The Bank’s support will enable 651 kilometers of rail to be laid between Tanzania and Burundi, promoting cross border travel and regional integration (Photo: African Development Bank Group)

The African Development Bank has approved US$696.41 million of financing for Burundi and Tanzania to build 650km of rail infrastructure to develop the Central Corridor network.

The Board of Directors of the African Development Bank Group has approved various financing structures valued at US$696.41 million for Burundi and Tanzania to start Phase II of the Joint Tanzania-Burundi-DR Congo Standard Gauge Railway (SGR) Project.

The project will be divided into three sections. The first section will run from Tabora to Kigoma, covering a distance of 411km, while the second section will cover 156km from Uvinza to Malagarasi in Tanzania. The third section will be in Burundi, spanning 84km from Malagarasi to Musongati.

The project will connect the standard gauge railway to Tanzania’s existing railway network, providing access to the Dar es Salaam port. The first phase of the project has already seen the construction of 400km of rail infrastructure in Tanzania.

The remaining section from Dodoma to Tabora is currently under construction.

The Bank Group will provide US$98.62 million to Burundi in the form of grants and US$597.79 million to Tanzania in the form of loans and guarantees.

This project is said to be a priority for not only the East African Community (EAC) Rail Master Plan, but also the African Union’s Program for Infrastructure Development in Africa (PIDA) and will facilitate economic and social transformation in both countries as well as the region.