§ Lynne JonesTo ask the Secretary of State for International Development what proportion of Tanzania's debt has been written off as part of the enhanced HIPC initiative; and what assessment she has made of the effect on annual debt repayments of the purchase of an air traffic control system. [29705]
§ Hilary BennUnder the enhanced HIPC initiative, 54 per cent. of Tanzania's debt in real terms was written off. This does not include the full value of Paris Club debt prior to the enhanced HIPC initiative or the additional bilateral relief beyond the enhanced HIPC initiative. Additional relief beyond the enhanced HIPC initiative will reduce Tanzania's debt by a further 9 per cent.
It is difficult to assess the impact of individual projects on Tanzania's overall debt servicing obligations. However we recognise that debt management is a key part of maintaining longer-term debt sustainability. DFID is working closely with the World bank, International Monetary Fund, other development partners and the Government of Tanzania to ensure that such investments, and the resulting impact on annual debt repayments, are fully scrutinised as part of the public expenditure review and debt management processes.