Press Release

New airport in Tanzania to be constructed with US$4.62 OPEC Fund loan

95/2005 September 8, Vienna, Austria
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The OPEC Fund for International Development has signed a US$4.62 million loan agreement with the United Republic of Tanzania to help finance construction of an airport in Mbeya town. The project falls in line with government’s aim to improve the efficiency and safety of air traffic throughout the country.

Mbeya province, home to some 2.1 million people, is situated around 8 60 km southwest of the capital Dar Es-Salaam. The airport serving the area is located in central Mbeya town, the province’s capital. However, the facility can only accommodate light aircraft, which presently transport just 600-800 passengers per year. In order to meet the growing need for regular, scheduled flights and to encourage development of the region, the Fund-co-sponsored initiative will construct a modern airport. The new facility will be designed to handle larger-capacity Boeing 737s and will be more strategically located on the outskirts of town.

Works to be carried out include the construction of a 3,300 m-long runway, a taxiway and parking apron. New arrival and departure buildings and a control tower will be built, and drainage structures and water supply and sewerage systems installed. Also envisaged is an extensive baggage handling system and the procurement of up-to-date meteorology and communication equipment. Future needs will be met as the upgraded airport has been designed to accommodate forecasted passenger traffic.

Benefits of the scheme will be multi-fold. A planned Mbeya - Dar es Salaam route will act as a major facilitator for tourism. It is also anticipated that the airport will serve as a hub to neighboring Malawi and Zambia. In addition, as the Mbeya province is an important food-producing region, the airport will create a new avenue for transporting and marketing agricultural products, thus helping boost food security and enhancing income generation activities.

The OPEC Fund has previously approved loans to Tanzania totaling around US$171.09 million. These loans provided balance of payments support, helped finance commodity imports programs, provided debt relief under the Heavily Indebted Poor Countries Initiative, and supported projects in the education, agriculture, health and energy sectors. Tanzania has also been the recipient of five technical assistance grants which went towards regional programs in the water supply and sewerage, agriculture, health and transportation sectors.