NWF-financed water projects benefit over 5 million

DAR ES SALAAM: THE National Water Fund (NWF) has spent at least 450bn/- in three years of President Samia Suluhu Hassan to finance a total of 998 water projects countrywide.

Out of which 354 projects are complete and operational, benefiting 5.3 million Tanzanians. The remaining projects are in various stages of implementation and some expected to complete within this fiscal year.

According to the NWF’s Chief Executive Officer Haji Nandule the funding was a period between July 2021 and July this year. Advocate Nandule revealed this on Thursday in Dar es Salaam during a meeting with editors from various media houses, organised by the Office of Treasury Registrar (OTR).

Advocate Nandule detailed on the successes that the Fund attained, mainly in financing projects for supply and preservation of the precious liquid while targeting President Samia Suluhu Hassan’s goal of relieving women from a burden of carrying water bucket on their heads.

“Numerous projects have been executed with NWF funding, including approximately 104 water conservation projects aimed at protecting 92 water sources, rehabilitating seven dams and drilling over 50 deep wells,” Advocate Nandule pointed out.

The NWF is tasked with raising funds for the implementation of water projects and offers low-interest loans, with a dedicated funding window for sustainable water projects.

Funding sources include allocations from the Parliament, grants, donations and contributions, with a significant portion currently sourced from a fuel levy of 50/- per litre. Currently, the Fund generates approximately 170bn/- revenue from the fuel levy annually.

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The fund provides finances in terms of both loans to the water authorities and subsidies, with the majority of subsidies about 60 per cent directed toward rural water projects, where water access challenges are most severe. Additionally, the subsidies are allocated for water resource conservation efforts.

According to Mr Nandule, establishing a loan window is a major achievement for the NWF whereby by July 2024, the fund had disbursed a total of 5.3bn/- in affordable loans to water authorities. The loans to water authorities are meant to enhancing service sustainability.

The NWF collaborates with the Tanzania Investment Bank (TIB) to process loan applications and ensure effective loan repayments, which sustain the revolving fund for future projects.

“We are thankful for the government’s financial support that enables the fund to fulfil its mandate,” he stated.

Operating under the Ministry of Water, the NWF’s primary role is to allocate funding for water projects across Tanzania, ensuring financial resources are consistently available for these initiatives.

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Since its establishment in the 2015/16 financial year, the fund has been crucial in securing a reliable financial source for executing water projects. He said another achievement includes capacity-building initiatives for organisations involved in water projects.

To date, 150 officials from the Rural Water Supply and Sanitation Agency (RUWASA), various water authorities and water boards have been trained across several regions. Commenting, NWF’s board chairman Abdallah Mkufunzi noted that the board is currently reviewing the Fund’s policies for loan issuance and repayment to enhance efficiency.

The NWF has encountered no challenges in loan repayments from water authorities, indicating a healthy financial status.