In a ceremony held at BADEA’s Headquarters in Khartoum, on Thursday October 20, 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 $ 7.9 million to help finance Chalinzi Water Supply Project (Phase I).

The signing ceremony was attended from the side of Tanzania by Mr. Ramadhani M. Khijjah, Deputy Permanent Secretary Treasury, Ministry of Finance, and from the side of BADEA by H.E. Mr. Ahmed Abdallah El-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 supporting the Government Economic Recovery Programme by promoting the water supply and sewerage services in rural and urban areas. The project also aims at improving the living conditions of the population and the alleviating poverty by the provision of drinking water and sanitation services and the protection of the environment.

With this new loan, the total commitments of BADEA to the United Republic of Tanzania will amount to US $ 107.26 million.