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Holland to give Sh33bn for KIA

Finance minister Saada Mkuya and Dutch minister for Foreign Trade and Development Cooperation Lilianne Ploumen sign a 15 million Euros grant for rehabilitation of the Kilimanjaro International Airport in Dar es Salaam on Wednesday. PHOTO | MICHAEL JAMSON

What you need to know:

The support intends to rehabilitate KIA’s aprons, taxiways and terminal building to efficiently handle expected increase in passengers over the coming 20 years.

Dar es Salaam. The Netherlands government will give Tanzania 15 million Euros (about Sh33 billion) to support the planned rehabilitation and expansion of Kilimanjaro International Airport, the two governments have announced.

Finance minister Saada Mkuya Salum signed agreement with Lilianne Ploumen, Dutch minister for Foreign Trade and Development Cooperation to enable the East African nation access the 15 million Euros grant from the Dutch government-funded facility for infrastructure, ORIO.

The amount is 42.25 per cent of the six-year project cost and Tanzania government will contribute the remaining 20.5 million Euros, said Mrs Salum.

“We really appreciate the support. Upon completion of the project, KIA will attract more international flights and that is a boost to the growing tourism industry as well,” she said.Qatar Airways, KLM Royal Dutch Airlines, Turkish Airlines, Ethiopian Airlines, Kenya Airways and Condor German Airlines are some of the international carriers with flights to the northern Tanzania airport, KIA.

Expansion projects will kick off in 2014 and be completed come 2020, she said. “Tanzania will allocate the fund in the next budget,” added Mrs Salum.

The support intends to rehabilitate KIA’s aprons, taxiways and terminal building to efficiently handle expected increase in passengers over the coming 20 years.

Ms Ploumen is visiting Tanzania to strengthen the four-decade bilateral relations with a business delegation of over 30 Dutch companies active in oil and gas and maritime infrastructure looking for investment opportunities in the country.

“Tanzania is doing well in implementing ORIO-supported projects,” said Ms Ploumen.

In September 2012, ORIO supported Tanzania with 16.3 million Euros for rural electrification project in Ngara, Biharamulo and Mpanda. In November 2012, Tanzania also received 11.5 million Euros for rehabilitation of 37 selected hospitals on the Mainland.

In February 2013, ORIO granted 4.8 million Euros for enhancement of maternal and paediatric services at Mnazi Mmoja Hospital and 21 Primary Health Care Units in Zanzibar.

The grant provided under these projects was 50 per cent of the total project costs, according to Ms Salum.