India offers USD 190 million credit line to Tanzania

From V Mohan Narayan
Dar es Salaam, May 27 (PTI) India on Friday announced a
new line of credit and assistance of USD 190 million for
Tanzania and signed an agreement on avoidance of double
taxation as the two nations vowed to intensify cooperation to
combat terrorism and piracy and work closely for comprehensive
UN reforms.
On a three-day visit here, Indian Prime Minister Manmohan
Singh said after wide-ranging discussions with Tanzanian
President Jakaya Kikwete that the new line of credit of USD
180 million will be for water supply projects in Dar es
Salaam.
He also announced a fresh grant of USD 10 million for
capacity building projects in the social and educational
sectors.
Addressing a joint press conference with Kikwete, Singh
voiced concerns over the two major problems of terrorism and
piracy both countries faced and said they have decided to
intensify consultations and coordination to combat such
threats.
Kikwete said threats from piracy had never abated in the
region and it was agreed that there should be stronger
collaboration through intelligence-sharing and other
mechanisms. Kikwete noted that had been 27 attacks on ships in
the territorial waters of Tanzania.
On the issue of UN reforms, Kikwete reaffirmed Tanzania's
support for India's candidature for permanent membership. "We
support India's bid for a permanent seat in the Security
Council".
"India deserves it," he said going on to add that
"whenever the Security Council is expanded, you cannot leave
out India".
At the same time, he said Africa with 53 nations as UN
members too cannot be ignored. "To be left out will be
continuance of a major deficit," he said.
On its part, India has backed Africa's aspirations to get
on board the Security Council as a permanent member.
The two sides signed three agreements in the presence of
Singh and Kikwete. A Joint Action Plan was inked between the
National Small Industries Corporation of India and the Small
Industries Development Organisation of Tanzania for
cooperation in the field of micro, small and medium
enterprises.
An accord on Avoidance of Double Taxation and the
Prevention of Fiscal Evasion with respect to taxes on income
was signed by the two countries.
Kikwete clarified that the agreement was not related to
tax evasion but a "standard" procedure between two countries
doing business."There could some fishy, unscrupulous elements"
but they will be taken care of, he said.
A joint venture agreement was signed between the Apollo
Hospitals and the Tanzanian government for setting up a super
specialty hospital in Dar es Salaam. Apollo chief Dr Pratap
Reddy said consultations were underway for setting up an up to
500-bed hospital at an estimated cost of USD 100 million.
Kikwete said Tanzania doctors and nurses will also be
trained by Apollo to make specialised treatment available in
this country. He said Tanzania has yet to develop capacity for
treatment of heart diseases besides cancer, kidney and other
problems.
The Prime Minister will return to Delhi on Saturday night
at the end of his six-day visit to Ethiopia and Tanzania.