TIB issues 19bn/- credit facility to KUC

Investment plans initiated by Kilimanjaro Uchumi Company (KUC) got a shot in the arm, as Tanzania Investment Bank (TIB) has approved a 19bn/- credit facility.

KUC was established by Kilimanjaro Regional Secretariat as a means to harness investment opportunities in huge projects in the region, without depending on government budget. KUC Chief Executive Officer, Ms Donatila Kileo said they are due to construct an international market for grain crops, a vegetable and fruits market.

Reading out implementation plans, Ms Kileo said KUC plans to put up an industrial and commercial town and a tower at Lokolova as well as an International Tourist Town at Siha.

"We have successfully applied for a credit facility worth 19,033,737,977/- from TIB, which is worth 70 per cent of the whole programme to be repaid in 120 months after the day we receive it," said Ms Kileo.

She noted that TIB has already dished out 624m/-, among other things, for feasibility study of the programme that has several projects. 

The first phase includes construction of four warehouses that can store 20,000 tons of grain at once while other 14 modern warehouses with the capacity to store 60,000 tons of grain are also to be constructed.

Kilimanjaro Region, under the then Regional Commissioner, Mr Leonidas Gama, came up with the Public Private Partnership (PPP) plan so as to invest in huge development projects to benefit both and create employment opportunities to the locals.

Mr Gama who opted to stand down this year and successfully vied for a Songea Urban parliamentary seat was present at the unveiling of programmes this weekend.

He urged the new Regional Commissioner, Mr Amos Makala, to carry on from where he left, saying there was a lot of untapped resources in the region that is small geographically but could be developed into a major city.

Mr Gama advised Mr Makala to encourage all seven district councils in the region to buy shares in the company, as they will benefit a lot when time for dividends comes.

He said the fact that projects involved in the programme are huge and commercially viable, shareholders will get good returns from their money invested therein and councils will be able to get on without waiting for funds from the central government. 
Source: Daily News, reported by Deus Ngowi, from Moshi, Tanzania
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