During a state visit by Indian Prime Minister Narendra Modi, India on Sunday extended its full support to the country to meet its development needs and signed five agreements, including one for providing a $92 million credit line in the water resources sector.
Modi said he along with President John Pombe Joseph Magufuli “agreed to deepen overall defence and security partnership, especially in the maritime domain.”
“Our in-depth discussions on regional and global issues reflected our considerable convergence on issues of common interest and concern,” he said at a joint press interaction after his bilateral meeting with President Magufuli.
“India’s cooperation with Tanzania will always be as per your needs and priorities,” Modi said.
The two sides signed an agreement under which India would provide a Line of Credit of $ 92 million for rehabilitation and improvement of Zanzibar’s water supply system.
The semi-arid country has diminishing groundwater and a lack of safe water access.
The Prime Minister said the two countries were also working on a number of other water projects for 17 cities in Tanzania.
Modi said his government was ready to offer additional financing for other water projects in east Africa’s second-biggest economy.
“India is willing to consider an additional $500 million line of concessional credit,” Modi said at a joint news conference with Magufuli.
Tanzania’s water sector has also become the focus of foreign donor support. German state aid agency Giz, for example, a few years ago helped with the setting up of an independent regulator for the water sector. China also has funded clean water projects in Tanzania.
Both India and China are trying to expand presence in East Africa’s second-biggest economy.
Earlier last year, Tanzania awarded contracts to build new railway lines worth about $9 billion to Chinese firms.
Tanzania, in 2014, signed an agreement with China Merchant Holding International (CMHI) to build a new mega port and economic zone at Bagamoyo expected to cost at least $10 billion.
China is also financing a $1.2 billion, 532 km natural gas pipeline in Tanzania.