Tanzania signs loans with World Bank

World Bank hq22 April 2013, News Wires – Tanzania has signed three loan agreements with the World Bank worth $196.5 million to strengthen its energy sector following major gas discoveries, the country’s finance ministry said in a statement.

East Africa’s second-largest economy will get a $100 million loan from the bank to strengthen policy and institutional framework for management of the country’s natural gas resources and to improve power supply, Reuters reported the ministry as saying over the weekend.

It added another $21.5 million loan would be used to develop the government’s capacity to develop its natural gas sector and boost public-private partnerships for the power generation sector.

“Successful implementation of each of these components will enhance government capacity to better manage developments in the energy sector,” Tanzania’s finance minister, William Mgimwa, said in a statement.

The balance of $75 million from the bank will be used to support its national poverty reduction strategy, Reuters reported.

Tanzania is fast becoming a regional energy hub following recent major discoveries of natural gas in its offshore fields.

Statoil and Britain’s BG Group said in March they plan to build a $10 billion liquefied natural gas terminal in Tanzania following substantial finds off the coast of the country.

Government officials plan to put in place a new natural gas policy, legislation and master plan in the 2013/14 fiscal year.

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