Owing to the devious terms and conditions of the loan, the Tanzanian President John Magufuli cancelled the USD 10 billion Chinese loan agreement signed by his predecessor Jakaya Kikwete.
The Chinese investors signed the loan agreement with the erstwhile President for the construction of a port at Mbegani creek in Bagamoyo on condition that they will be granted 30 years guarantee and 99 years uninterrupted lease.
However, the present President Magufuli exclaimed that the above terms and conditions could only be accepted by mad people.
In response, he initiated a renegotiation process to decrease the lease period to 33 years from the initial 99 years.
However, the investors failed to meet the deadline stipulated by the Tanzanian Government, resulting in cancellation of the agreement.