TIB has formulated a strategy to complement Government economic development efforts through investments in infrastructure with a focus in the transport, utilities, oil and gas and the telecommunications sectors. Building up of infrastructure is essential, if the country is to achieve rapid economic development and delivery of equitable quality services that will improve the living standards of Tanzanians. In its approach to provide loans to service the sector, the bank has designed Infrastructure Loans available to the following three categories of projects as follows:
These are nation-wide projects and will ordinarily originate and be implemented in collaboration with respective State-owned enterprises/corporations. The bank’s loans are therefore directed to finance development of infrastructure such as:-
- Utilities and Communications: electricity generation and distribution, water treatment and distribution, oil and gas infrastructure, telecommunications, and ICT.
- Transport: ports, airports including airport buildings, and railway lines, and attendant facilities.
- Transport Equipment: locomotives, marine vessels, aircraft and buses related equipment.
Local Government Projects:
The bank has developed a lending framework to support financing of municipal infrastructures to assist Local Government Authorities (LGAs) to bridge existing financing gaps in otherwise economically and financially viable projects. Through partnership with local governments, the bank intends to extend its successes in the development of satellite cities, bus terminals and modernization of markets.
Public Private Partnership (PPP):
The infrastructure loans under this category are directed to solid partnerships between a public entity and a private company that answer to the important need for infrastructure.
The bank provides facilities at an affordable interest rate and the loan tenor is of up to 20 years with a grace period during implementation of the project.