Tanzania-Zambia Railway Revitalization Project Signs RMB 6.96 Billion Syndicated Loan Agreement

en.Wedoany.com Reported - On September 24, the loan agreement for the Tanzania-Zambia Railway Revitalization Project was signed in Beijing. Bank of China, as lender and agent bank, participated in the signing of a cross-border syndicated loan agreement totaling RMB 6.96 billion, with the loan funds to be used for the systematic upgrade and modernization of the Tanzania-Zambia Railway. The Export-Import Bank of China served as the lead arranger of the syndicate, with participating institutions also including China Development Bank, Industrial and Commercial Bank of China, and Standard Bank, among others.

The project financing corresponds to the Tanzania-Zambia Railway revitalization works implemented by China Civil Engineering Construction Corporation. Public disclosures show that the relevant project company had previously planned to apply to the Export-Import Bank of China and other financial institutions for a loan with a principal not exceeding RMB 6.9608 billion to advance project construction; Jiayou International disclosed on September 17 that it planned to provide a joint and several liability guarantee for the relevant loan at a ratio of 5%, corresponding to a guaranteed principal not exceeding RMB 348.04 million.

The Tanzania-Zambia Railway has a total length of approximately 1,860 kilometers, connecting Dar es Salaam in Tanzania and New Kapiri Mposhi in Zambia. In September 2025, China Civil Engineering signed agreements related to the Tanzania-Zambia Railway Revitalization Project with relevant parties in Tanzania and Zambia. The Zambian Parliament subsequently disclosed that the total project investment is approximately USD 1.4 billion, of which approximately USD 1.17 billion is for initial capital equipment procurement and railway rehabilitation, and another USD 238 million is for subsequent reinvestment. The scope of works includes track rehabilitation along the entire line, signal system upgrades, and the procurement of new locomotives, freight cars, and passenger cars.

According to the project arrangements disclosed by the Tanzania-Zambia Railway Authority, China Civil Engineering will undertake railway infrastructure rehabilitation and subsequent operations. The concession period is 31 years, with the project construction and rehabilitation phase planned to last 3 years, after which it will enter the long-term operation phase. In April 2026, the project survey and design work was nearing completion, and the final design scheme was being formed.

Following the signing of this loan agreement, the parties will next coordinate the advancement of survey and design, railway engineering construction, locomotive and rolling stock procurement, and operations preparation. According to the project's existing equipment configuration plan, the scope of renovation involves the track along the entire line, maintenance facilities, and supporting systems, and new locomotives and rolling stock are planned to be procured. The plan previously announced by the Tanzania-Zambia Railway Authority includes comprehensive rehabilitation of railway infrastructure and the renewal of locomotives, freight cars, and other rolling stock.

After the project renovation is completed, the Tanzania-Zambia Railway's freight capacity is planned to be increased to approximately 2.4 million tons per year. The revitalization project agreement formally signed in 2025 incorporates railway infrastructure renovation, rolling stock renewal, and subsequent operations into a single project system, and this RMB 6.96 billion cross-border syndicated loan further implements the corresponding construction funding arrangements.