EU commits 36.5bn/- for Mwanza water project

MWANZA: THE European Union (EU) has committed Euro 12.93 million (about 36.5bn/-) to support the second phase of the Lake Victoria Water Supply and Sanitation Project (LV WATSAN II).The investment is expected to boost water supply and sanitation services in Mwanza City, where rapid urban growth is increasing pressure on existing infrastructure while raising concerns over pollution in Lake Victoria.

The funding commitment was formalised recently in Mwanza through the signing of a contribution agreement between the EU and the French Development Agency (AFD).

Speaking during the signing ceremony, EU Ambassador to Tanzania, Ms Christine Grau, said the grant reflects the bloc’s long-term commitment to supporting Tanzania’s social, economic and environment development through strategic infrastructure investments.

“Today, we mark a new commitment to the city of Mwanza,” she explained. Ms Grau explained that the EU grant will complement a concessional loan from AFD to the Government of Tanzania for implementation of the project’s second phase.

She noted that Mwanza’s rapid urbanisation has increased demand for clean water and heightened environment risks, particularly pollution of Lake Victoria.

According to Ms Grau, the EU previously financed a comprehensive Water Supply and Sanitation Master Plan, which identified Mwanza’s short-, mediumand long-term infrastructure needs and has since guided major investments in the sector.

Under the financing arrangement, AFD and the European Investment Bank (EIB) will provide loans totalling Euro 190 million, with AFD contributing Euro 90 million and EIB providing Euro 100 million.

Ms Grau said the project will expand water supply coverage in Mwanza’s southern zone while improving sanitation and hygiene services in informal settlements.

The project also includes the option of integrating solar energy systems to address power supply challenges affecting water production and distribution facilities.

She further revealed that discussions are underway on the feasibility of mobilising additional resources for a third phase of the project, which would focus on addressing water and sanitation challenges in Mwanza’s northern zone.

The ambassador commended Tanzania’s longstanding partnership with the EU in the water sector, noting that support for Mwanza’s water and sanitation infrastructure dates back more than two decades.

Ms Grau recalled that in the early 2000s, the EU and Germany’s development bank, KfW, jointly financed water supply and sanitation infrastructure serving Mwanza’s central zone and surrounding areas.

“More than 20 years of EU engagement in Mwanza demonstrates our commitment to supporting sustainable urban development and improving the quality of life for residents,” she added.

AFD Regional Director, Mr Jean-François, described the agreement as more than a financial transaction, saying it reflects Team Europe’s continued commitment to the people of Mwanza.

He said the LV WATSAN II programme, valued at Euro 202.5 million (about 600bn/- ), will be financed through the grant agreement and concessional loans from AFD and EIB, which are in the final stages of formalisation.

Director of Water Supply and Sanitation at the Ministry of Water, Eng. Charles Mafie, said the project will help reduce Mwanza’s water shortage and improve access to clean water.

He said MWAUWASA currently produces 134 million litres of water daily against demand of 188 million litres, leaving a shortfall of 54 million litres.

“Through LV WATSAN II, we expect to increase water production to 170 million litres per day, significantly improving water accessibility in Mwanza City,” he stated.

Eng. Mafie added that implementation has already begun in some areas, including construction of a water treatment facility under the Butimba Water Project, while preparations are underway for a new treatment plant at Kabangaja to serve northern Mwanza and meet rising demand.