India signs five agreements with Tanzania

Seeking to enhance its ties with resource-rich Tanzania, India on Sunday extended its full support to the country to meet its development needs and signed five agreements, including one for providing a Line of Credit of $92 million in the water resources sector.

Describing India as a trusted partner in meeting Tanzania’s development priorities, Mr. Modi said he along with President John Pombe Joseph Magufuli “agreed to deepen overall defence and security partnership, especially in the maritime domain.”

“Our in-depth discussions on regional and global issues reflected our considerable convergence on issues of common interest and concern,” he said at a joint press interaction after his bilateral meeting with President Magufuli.

Twin threats

The two leaders agreed to work closely, bilaterally, regionally and globally to combat the twin threats of terrorism and climate change.

In a joint statement, the two leaders expressed their strong condemnation of terrorism in all its forms and manifestations and stated that there could be no justification for terrorism whatsoever. They expressed satisfaction on the holding of bilateral counter-terrorism consultations in early 2016.

“India’s cooperation with Tanzania will always be as per your needs and priorities,” Mr. Modi said.

The two sides signed an agreement under which India would provide a Line of Credit of $ 92 million for rehabilitation and improvement of Zanzibar’s water supply system.

Other agreements signed included an MoU on water resource management and development, an MoU for establishment of vocational training centre at Zanzibar, an MoU on visa waiver for diplomatic/official passport holders and an agreement between the National Small Industries Corporation of India and the Small Industries Development Organisation, Tanzania.

The Prime Minister said the two countries were also working on a number of other water projects for 17 cities in Tanzania.

Source: http://www.thehindu.com/news/national/narendra-modis-africa-visit-india-extends-92-mn-line-of-credit-to-tanzania/article8831464.ece

Tanzania plans to invest $1.9 billion each year in energy projects by 2025

“Tanzania’s electricity sector faces another important challenge. As it is heavily dependent on hydropower, energy provision cannot be ascertained in times of drought,” Tanzania’s prime minister, Kassim Majaliwa, said.

Tanzania plans to invest $1.9 billion each year by 2025 in energy projects in a bid to end power shortages and boost industrial growth in East Africa’s second-biggest economy, its prime minister said.

Tanzania aims to boost power generation capacity to 10,000 megawatts from around 1,500MW at present, using natural gas and coal and reducing its dependence on hydro power sources.

“Tanzania’s electricity sector faces another important challenge. As it is heavily dependent on hydropower, energy provision cannot be ascertained in times of drought,” Tanzania’s prime minister, Kassim Majaliwa, said in a statement late on Tuesday.

“Severe and recurrent droughts in the past few years triggered a devastating power crisis as electricity generation in most of the hydropower stations have progressively been declining in recent years, occasionally resulting in long hours of power black outs.”

Majaliwa said the government wants to see more private capital investment in the energy sector.
“The projected power projects funding exceeds the existing government fiscal space,” he said. “To attract private capital, the government is improving institutional set up, legal and regulatory frameworks.”

Investors have long complained that lack of reliable power was one of the obstacles of doing business in Tanzania.

Tanzania said last week Japan’s Koyo Corporation plans to invest $1 billion in a gas-fired power plant near big offshore natural gas fields off the African country’s southern shore.
Source: http://economictimes.indiatimes.com/articleshow/52432817.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst