Tanzania recently secured USD160m in concessional loans from the Government of South Korea for water and energy development.
Out of the USD160m, USD110m will be directed to the construction of a new sewerage system network, a modern wastewater treatment plant and pumping station in Dar es Salaam.
This will contribute to preventing environmental pollution created from rapid urbanization in Dar es Salaam, thereby improving public health and sanitation, Korea Exim Bank indicates.
The remaining USD50m will assist Tanzania in the construction of power transmissions grids, which will be jointly developed with the African Development Bank (AfDB).
The funds will be provided through the Korea Exim Bank’s Economic Cooperation Development Fund (EDCF), established by the Korean Government in 1987 to assist developing countries through the provision of long-term, low-interest credit.
Korea Exim Bank has supported 11 development projects in Tanzania in agriculture, road, electricity, education, and health sectors, totaling USD445m in EDCF loans.
“More recently, there is an increasing demand for infrastructure development in sub-Saharan African countries thanks to the end of civil wars and stable governance. It is also expected that the middle-income bracket will gradually grow larger. These factors combined are giving reason for Korean companies to look to Africa as a new land of opportunities,” Korea Exim Bank notes.
Moreover, the South Korean Embassy in Tanzania indicates that Tanzania has been selected as one of Korea’s priority partner countries for Official Development Assistance (ODA) starting 2016 “and as a result, the Embassy looks forward to enhanced mutual cooperation with Tanzania through tailored assistance.”