TIB Managing Director, Mr Peter Noni
The transmission line will facilitate power connectivity from Kilwa energy project to make an additional 560 Megawatts to the National Grid.
TIB Managing Director, Mr Peter Noni, said in Dar es Salaam that TIB as lead arranger of the loan will provide 20 million US dollars (over 40bn/-) and the balance to be sourced from pensions funds and some foreign banks.
The lead arranger or the mandated lead arranger is the investment bank or underwriter firm that facilitates and leads a group of investors in a syndicated loan for major financing.
He said the compensation process to pave way for the project execution started this week (Wednesday), costing 40 million US dollars and the remaining 100 million US dollars for project execution."TIB board has already approved the project and the bank will start disbursing funds for first phase implementation of the two years duration project that will kickoff early next year," he said, adding that the loan will have two year grace period and eight years payback period.
Furthermore, the TIB boss said the bank provided financing in an innovative transaction worth 55 million US dollars to the Tanzania Petroleum Development Corporation (TPDC) to connect gas wells to the gas processing plant in Madimba to supply the Kinyerezi I gas power generation in Dar es Salaam.
TANESCO's Managing Director, Mr Felchesmi Mramba, said the agreement has come at an appropriate time and is a good start in the journey to reduce dependency from the Treasury to run the firm commercially.
"The compensation process has started smoothly and the project is expected to benefit local communities along the transmission line from Somanga, Kilwa District to Kinyerezi in Dar es Salaam," he said.
/Daily News.
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