The China Harbour Engineering Company (CHEC) and the government of Zanzibar have entered a $230 million agreement, which will support the construction of a new Zanzibar, Tanzania port, Africa Outlook reported.
The project — carrying a three-year completion period — will lend 13 percent of port shares back to CHEC. According to Africa Outlook, once the firm disburses funds to the government, Zanzibar will be allotted 30 years — including a 5-year grace period — to repay the loan.
“The new port will have a 300 metre (984 foot) docking space and 65 metres (213 feet) of land craft, modern handling equipment with the capability to handle 200,000 containers and 250,000 tonnes of loose cargo,” Dr. Juma Malik Akil, principal Secretary in the Ministry of Infrastructure and Communication, said in the report.
A press release noted that job creation and economic development are the focal pluses of the port’s construction, which is said to include “a multi-purpose terminal berth and related auxiliary facilities.”
Established partners in politics, Zanzibar Minister for Infrastructure and Communications, Rashid Seif Suleiman told the Tanzania Daily News that the topmost quality is expected from China and CHEC.
“The Exim bank will provide a loan of 200 million U.S. dollars while the contractors (CHEC) have agreed to release 30 million U.S. dollars through equity financing of the 36 months project construction period,” Zanzibar Finance Minister Omar Yussuf Mzee, added.
Last May, China’s President Xi Jinping and Ali Mohamed Shein, Zanzibar’s president agreed to honor mutual cooperation that would result in benefits for both regions.