In a ceremony held on Thursday 7th of April 2005, a loan agreement was signed between the United Republic of Tanzania and the Arab Bank for Economic Development in Africa (BADEA). By virtue of this agreement BADEA extends to the United Republic of Tanzania a loan of US$ 7 million, to help finance Songwe Airport Project in Mbeya town.

The signing ceremony was attended by H.E. Mr. Ramadhani M. Khijjah, Deputy Permanent Secretary Treasury, H.E. Mr. Ahmed Abdallah Al-Akeil, Chairman of BADEA’s Board of Directors, and H.E. Mr. Medhat S. Lotfy, the Director General of BADEA.

The loan will be repaid in 30 years, including a grace period of 10 years, and at an annual interest rate of 1%.

The project aims at improving the efficiency of air traffic in the country, by linking Mbeya province with domestic and regional airports. It also aims at providing a safe and effective way for transporting goods and passengers, improving tourism sector, and creating new avenues for marketing the various agricultural products, which will contribute to fighting poverty and improving the living standard of the population.

Including this new loan, total commitments of BADEA to the United Republic of Tanzania will amount to US $ 99.36 million.