Abu Dhabi Fund for Development Extends AED55 Million Concessionary Loan to Tanzanian Government

Loan to upgrade the strategic Uvinza-Ilunde-Malagarasi Road

Abu Dhabi, United Arab Emirates, 02 April 2018:  Abu Dhabi Fund for Development (ADFD), the leading national entity for development aid, has extended a concessionary loan valued at AED55 million to the Government of the United Republic of Tanzania (Tanzania) to finance the upgrade of 51km of the Uvinza-Ilunde-Malagarasi Road. 

The funded project is an extension to Kidaho - Ovinza Road which was funded in 2009 by ADFD as a concessionary loan worth AED169 million.

His Excellency Mohammed Saif Al Suwaidi, Director General of ADFD, and His Excellency Eng. Mussa Ibrahim Iyombe, Permanent Secretary to the President’s Office Regional Administration and Local Government, signed the loan agreement at the ADFD headquarters in Abu Dhabi.

The signing ceremony was also attended by His Excellency Mubarak Nasser Mubarak, Ambassador of Tanzania to the UAE and Khalifa Abdullah Al Qubaisi, Deputy Director General of the Abu Dhabi Fund for Development, along with several other officials from both sides.

Aimed at enhancing the socio-economic status of rural populations, especially in the Kigoma Region, the Uvinza-Ilunde-Malagarasi Road upgrade project seeks to improve the transportation network between former capital Dar es Salaam and the lake port town of Kigoma.

Set to boost domestic connectivity between villages and cities, as well as international connectivity with neighbouring countries, such as Burundi and the Democratic Republic of the Congo, the project supports the Tanzanian government's strategic objective to become East Africa’s industrial and logistics hub.

His Excellency Mohammed Saif Al Suwaidi said: "The agreement reflects ADFD’s priority to support development projects across vital economic sectors in developing countries, especially the roads and transport sector.

The Uvinza-Ilunde-Malagarasi Road upgrade is an important venture that aligns with Tanzania’s efforts to become a semi-industrial country and improve the living standards of its citizens.

We are confident that the project will translate into a positive socio-economic impact, and enable the Tanzanian government and people to fulfil their development aspirations."

Applauding the synergy between ADFD and Tanzania, His Excellency Eng Mussa Ibrahim Lyombe expressed appreciation for ADFD’s significant role in financing strategic projects that contribute to the economic and social development of Tanzania.

He also noted that the Government of Tanzania is eager to enhance collaboration with the UAE and ADFD, particularly in infrastructure and other sectors given their crucial role in promoting sustainable development.

He added that the Fund's financial support for infrastructure projects, especially in the transport and water sectors, enable the Tanzanian government to overcome the development challenges they face. 

The project involves the reconstruction and upgrade of a 51 km, 6.5 m wide single-lane carriageway with 1.5 m wide internal and external shoulders that connects the towns of Uvinza and Ilunde with the town of Malagarasi.

n addition, ADFD is providing consultancy services for the detailed design and supervision of the works that include the construction of small crossing bridges, culverts and service ducts.

ADFD’s contribution to the development of Tanzania dates back to 1977. Since then, the Fund has allocated AED233 million to finance several projects that serve strategic sectors in the East African country.