Tanzania, Burundi Award $2.15B Contract for Rail Project

Tanzania and Burundi have awarded a contract to China Railway Engineering Group and China Railway Engineering Design and Consulting Group to build a 282km railway line between the two countries. The line will connect Tanzania and Burundi to global markets via the Dar es Salaam port.

The contract was signed on behalf of Tanzania by the Tanzania Railways Corporation and Burundi by the country’s Ministry of Infrastructure. Funded by the African Development Bank, the $2.15 billion project will facilitate the transportation of 3 million tons of minerals annually from both countries.

According to Tanzania’s Minister for Transport Makame Mbarawa, the project has created 30,000 jobs in the country, generating 350 billion Tanzanian shillings ($138 million) in income. The project has also resulted in 3.7 trillion Tanzanian shillings in contracts to local businesses, according to Mbarawa.

Construction is expected to take 72 months and the project is aligned with the African Union’s Agenda 2063 aiming to integrate African economies through modern rail networks.