India today announced a new line of credit of $180 million for Tanzania and signed a pact on avoidance of double taxation as the two countries agreed to intensify cooperation to combat terrorism and piracy and work closely for comprehensive UN reforms.
On a three-day visit here, Prime Minister Manmohan Singh said after wide-ranging discussions with Tanzanian President Jakaya Kikwete that the new line of credit will be for water supply projects in country's capital Dar es Salaam. Singh is in Tanzania on the second leg of his two-nation tour of Africa that had also taken him to Ethiopia.
Addressing a joint press conference with Kikwete, Singh voiced concern 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 felt that threats from piracy had never abated in the region and said it was agreed that there should be stronger collaboration through intelligence-sharing and other mechanisms. He noted there had been 27 attacks on ships on 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 African with 53 nations as UN members too cannot be ignored. "To be left out will be continuance of a major deficit," he noted.
On its part, India has backed Africa's aspirations to get on board the Security Council as a permanent member.
The Indian and Tanzanian sides in all 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 Developemnt 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 among the agreements initialled.
Kikwete clarified that the agreement was not related to tax evasion but a "standard" procedure between two countries doing business. "There could be 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 speciality hospital in Dar es Salaam. Apollo chief Dr Pratap Reddy said consultations were underway for setting up an upto 500-bed hospital at an estimated cost of $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.
