Dar es Salaam: On 24th July, 2014, the Government of Japan and the Government of the United Republic of Tanzania signed Exchange of Notes for the Japanese Grant Projects “The Project for Reinforcement of Power Distribution in Dar es Salaam” and “The Project for improvement of Tazara Intersection”.
The Government of Japan provided an additional grant of up to four billion four hundred and ten million Japanese Yen (¥4,410,000,000), approximately seventy two billion and seventy four million Tanzanian Shillings (Tsh72,074,000,000) to the Government of the United Republic of Tanzania.
The project consists of construction or reinforcement of five substations and construction of distribution line.
By implementing these components, the project will greatly contribute to enhancing capability and improving stability of the power supply in Dar es Salaam city, which will lead to further development of economic activities and improvement of social services such as schools and hospitals.
The Government of Japan expanded a total amount of grant up to three billion four hundred and seventy-three million Japanese Yen (\3,473,000,000), approximately fifty six billion seven hundred and sixty one million Tanzanian Shillings (Tsh 56,761,000,000), by adding three hundred and forty-six million Japanese Yen (\346,000,000), approximately five billion six hundred and fifty five million Tanzanian Shillings (Tsh 5,655,000,000).
The expansion of the grant aims at addressing the shortage in budget caused by the fluctuation of foreign exchange rates and price increase of materials. The signing of contractor’s contract is expected to be held in September and the construction work will start soon thereafter. The fly-over will improve traffic conditions for both commuters and cargo transportation, thereby reinforcing the function of Dar es Salaam port as an international port, and enhancing the economic growth and investment in the commercial capital by reducing transportation cost.
H. E. Mr. Masaki Okada, Ambassador of Japan, and Dr. Servacius B. Likwelile, Permanent Secretary of the Ministry of Finance of the United Republic of Tanzania, signed the Exchange of Notes, and Mr. Yasunori Onishi, Chief Representative of JICA Tanzania Office, and Dr. Servacius B. Likwelile, Permanent Secretary of the Ministry of Finance, signed the Grant Agreement.