Leading global law firm Baker McKenzie acted as Lenders' Legal Counsel to Standard Chartered Bank and the other lenders, development finance institutions and export credit agencies on the US$1.46 billion financing to the Government of the United Republic of Tanzania (acting through the Ministry of Finance and Planning) in connection with the construction of the Standard Gauge Railway (SGR) Project from Dar es Salaam to Makutupora. The project is being constructed by Yapi Merkezi under an EPC Contract signed between Tanzania Railway Corporation and Yapi Merkezi.

Running approximately 550 kilometres long, the SGR project is one of the country’s biggest projects connecting Dodoma to Dar es Salaam via Morogoro and Makutupora. Once complete, the SGR Project will provide a safe and reliable means for efficiently transporting people and cargo to and from the existing Dar es Salaam Port. The deal represents the largest financing project to a sovereign state in East Africa.

The project has already created more than 8,000 new direct employment opportunities for Tanzanians and has opened up opportunities for local communities surrounding the project area to access services such as shelter and food

The Baker McKenzie team was led by Nick Tostivin and Luka Lightfoot, both being part of the wider Banking & Finance practice at Baker McKenzie, supported by Aimee Saunders, Stephanie Latsky and Josh Mastin-Lee (all London). Further support was given by Mats Rooth and Camilla Holmkvist in Stockholm.  

Commentating on the deal, Nick Tostivin said, “We are delighted to have worked with Standard Chartered Bank and the other lenders involved in such an important infrastructure project for the Tanzanian economy and people, It is a great example of how this financing model plays to our strengths in trade and export finance, and more specifically, in complex ECA-backed financings, as well as showcasing our cross-border expertise.”

Baker McKenzie is one of the leading firms for cross-border transactions, providing strategic advice on deals involving the world’s leading financial institutions and multinational companies. From deal inception to business integration, we provide an end-to-end service that helps clients bridge the gap between aspiration and achievement.
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