TZ secures 78.58bn/- grant for key projects
DODOMA: TANZANIA yesterday signed three major grant agreements with the Federal Republic of Germany, through the German Development Bank (KfW), worth 25.68 million euros (approximately 78.58bn/-) to finance key projects focused on water supply, climate resilience and biodiversity conservation.
Speaking during the signing ceremony, Permanent Secretary in the Ministry of Finance, Dr Natu Mwamba said the grant is expected to bolster Tanzania’s efforts in sustainable environmental management and improved access to water services.
Elaborating, Dr Mwamba said the grant is going to finance Investment Financing Facility – Output Based Approach (IFF-OBA) programme, with 30.60 bn/-, Financing the feasibility study of the project for Climate Resilient Towns, 2.08 bn/- and project for Sustainable Development of Protected Areas, worth 45.90bn/-.
“The purpose of IFF-OBA programme is to provide incentives for water authorities in Tanzania to obtain commercial loans to finance infrastructure investments that improve the level of service delivery and revenue generation.
Under the programme, a qualified water authority can access loans from commercial banks and be subsidized by the IFF-OBA programme.
Upon attaining the qualification criteria, the water authority receives a grant of 50 per cent of eligible project costs to a maximum of 1 million Euro.
“It will conduct the Feasibility Study for the Climate Resilient Towns project which is expected to be financed by a grant of 15 million Euro from the German Government which they committed during the intergovernmental negotiations held in German in November 2022.
The scope of the proposed project will be the construction of water supply systems and sanitation facilities in the selected towns of Liwale, Michiga, Likokona, Nyengedi, Mtua, Longa and Kiwalala in Lindi and Mtwara Regions.
Furthermore, the project will stimulate economic growth and social well-being through provision of sustainable water and sanitation services,” Dr Mwamba explained.
He added that the project will also address two major Tanzanian ecosystems, the Serengeti and Katavi-Mahale to ensure both conservation and socio-economic benefits for communities in proximity to these parks.
Dr Mwamba said beside the support, the government of Germany has also been supporting Tanzania through grants to projects which are in line with the National Development agenda as articulated under the National Development Vision 2025 and the Third Five-Year Development Plan 2021/22–2025/26.
The German Deputy Ambassador to Tanzania, Mr. Manuel Müller, reiterated his country’s continued commitment to supporting Tanzania in these vital sectors.
Mr Muller emphasized that the funding reflects a long-standing partnership and shared responsibility in improving access to clean water and preserving the country’s invaluable ecosystems.
He highlighted how the grant aligns with broader development goals particularly in advancing water resource management, enhancing sanitation infrastructure and strengthening conservation efforts in protected areas.
“These grants reflect the continued partnership between Tanzania and Germany in advancing environmental sustainability and climate resilience, with a focus on long-term development benefits for Tanzanian communities,” he said.
Müller stressed that the efforts not only benefit local communities but also support sustainable development and economic growth through eco-tourism and ecosystem services.
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He lauded the collaborative spirit between both governments and urged continued coordination to ensure efficient implementation and positive outcomes for Tanzania’s people and natural habitats.
