The World Bank has released $14m of a $44m loan to the troubled Tanzania Railways (TRL).
The loan was requested by the company's owners, the Tanzanian Government and India-based RITES, to improve rail operations.
It is hoped the improvements will help boost the country's trade with its neighbours including Burundi, Rwanda and Uganda, as well as the eastern regions of Congo.
The loan has been released by the bank's investment arm International Finance Corporation, which says the remainder of the amount will be released after the TRL management has finished the challenges facing it.
