DAR ES SALAAM, April 29 (Xinhua) -- The government of Tanzania has signed a financing agreement worth about 1.28 billion U.S. dollars to advance construction of key sections of its Standard Gauge Railway (SGR), aiming to strengthen regional connectivity and trade, a statement by the Ministry of Finance said late Tuesday.

The agreement, covering Lot 3 and Lot 4 of the railway from Makutupora in the Singida Region to Isaka in the Shinyanga Region, was signed in the capital, Dodoma, between Permanent Secretary in the Ministry of Finance Natu Mwamba, on behalf of the government, and Herman Kasekende, chief executive officer of Standard Chartered Bank Tanzania, who represented the financiers.

Minister of Finance Khamis Omar said the funds form part of a broader 2.33 billion dollar financing package for the project, arranged through export credit agencies from Italy, Sweden, and Poland, and coordinated by Standard Chartered Bank.

"This investment advances one of the most strategic projects in our nation's history, aimed at linking the port of Dar es Salaam with the Lake Victoria Zone and neighboring countries, while strengthening Tanzania's position as a regional trade and transport hub," Omar said.

He described the SGR as not only a major infrastructure investment but also a flagship national project aligned with Tanzania's long-term development vision.

Minister of Transport Makame Mbarawa said that once completed, the railway will have the capacity to transport up to 5 million tonnes of cargo annually and significantly reduce transit times, thereby improving efficiency, safety, and sustainability.

He noted that the project has already delivered tangible benefits, with services between Dar es Salaam and Dodoma transporting nearly 6 million passengers and 120,000 tonnes of cargo, while cutting travel time from 12 hours to about three hours. ■