Tanzania+Infrastructure+Projects


 * It Is Highly Likely China Will Continue To Invest In Tanzania Infrastructure Projects, Especially Those That Correspond With Mineral Investments **

It is highly likely China will continue to invest in Tanzania infrastructure projects, especially those that correspond with mineral investments. There have been a total of 11 infrastructure projects totaling USD 5.3 billion that include various infrastructure developments. Of this money, China’s primary focus has been on iron ore and coal projects with the country’s minerals. Due to Tanzania’s performance in PNGSM, the Chinese are highly likely to invest in infrastructure projects that coincide with minerals, will start projects that correspond with natural gas; however the Chinese will not invest in petroleum-infrastructure projects because there are no oil reserves.
 * Executive Summary: **

In September 2011 Tanzania and China signed a USD 3 billion deal to develop the Mchuchuma coal and Liganga iron project; the agreement was signed between Chrisant Mzindakaya, chairman of the National Development Corporation (NDC), and the Sichuan Hongda Group board of directors. The financing for the project is split between the Stanbic Bank and International Commercial Bank of China, ICBC. Stanbic Bank is owned by Standard Bank which is 20% owned by ICBC. The project was completed in 2012 and includes power production and transmission; exploration studies in 2013 prove that the mining sites will be viable for over 100 years.
 * Discussion: **

The list below outlines miscellaneous infrastructure projects in Tanzania that do not correspond to petroleum, natural gas and strategic mineral investments. These infrastructure projects total USD 2.9 billion and include a variety of projects such as improving the telecommunications industry, building of a natural gas pipeline for electricity, port expansion and so on.

(USD) || Location || Key Chinese Companies Involved || Description || Corresponds To || billion || Dar es Salaam || Eximbank || Building of a natural gas pipeline linking Mtwara gas field to Dar es Salaam || Misc. || million || Unknown || CITCC, Chinese government || Building an IP network and cloud computing center || Misc. || million || Bagamoyo || China Merchants Holding International Co. Ltd. || Building of a new port at Bagamoyo and railway network || Misc. || million || Dar es Salaam || Eximbank,Communications Construction Company (CCCC) || Expansion of Dar es Salaam port || Misc. || million || Unknown || Chinese government || Rehabilitation of the countries railways updating 42 coach cars, four new locomotives, two diesel shunting locomotives, 30,000 wooden sleepers, track maintenance vehicles, and staff training || Misc. || million || Unknown || Chinese government, Eximbank || Construction of a mobile telecom network || Misc. || million || Dar es Salaam, Kigoma, Taborak,Sumbawanga, Mbeya, Songea, Mtwara, and Lindi || Eximbank, CITCC || Building an IP network and cloud computing center || Misc. || million || Unknown || Chinese government,Chinese Civil Engineering and Construction Corporation (CCECC) || Rehabilitation of four cranes and two rescue cranes, purchase of 6 new locomotive engines, four wagons, and the repairing of 120 wagons || Misc. || million || Unknown || China International Telecommunication Construction Corporation || Improve telecommunications industry || Misc. ||
 * Date || Price
 * 2012 || 1.2
 * 2013 || Unknown || Unknown || Chinese government || To expand Tanga port || Misc. ||
 * 2013 || Unknown || Unknown || China Development Bank Corporation || Various infrastructure projects || Misc. ||
 * 2013 || 403
 * 2013 || 500
 * 2012 || 523
 * 2012 || 42.6
 * 2011 || 53
 * 2010 || 96
 * 2009 || 39
 * 2008 || 70

** Analytic Confidence: **
Analytic confidence is high. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise on the subject, worked alone while also collaborating with a group, and did not use a structured analytic method. The subject is moderately complex and the deadline was moderately easy to meet.


 * Analyst: ** James Gibson