World Bank Splashes Sh10 Billion To Improve Water Supply In Hundreds of Tanzania Villages

By  |  September 25, 2019

The Tanzania Government has signed an agreement with World Bank for a grant amounting to USD 4.5 million (TSH 10.35 billion) which is set to help in the provision of water to the citizens.

Under a program called Global Partnership for Results-based Approaches (GPRBA), the new fund is expected to improve water supply through improved solar pumping systems and will be implemented in 165 villages.

Permanent Secretary to the ministry of water, Dr Kitila Mkumbo said that the solar water pumping systems are meant to reduce operation and maintenance costs for Community Based Water Supply Organizations (CBWSO).

“The project opens up new resources of available funding to help close the vast investment gap for rural water supply in Tanzania and shift focus to mobilizing private sector financing consistent with the World Bank’s Maximizing Finance for Development (MFD) approach, ” Ms Zaruhi Tokhmakhian, Acting Head GPRBA added.

Part of the WB’s role will entail steering solar water pumping via Innovative Financing to help the country replace outdated diesel-powered pumps with clean and climate-friendly solar systems.

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For this project, World Bank plans to use a blended type of financing to supplement the grant by combining debt finance and output-based finance.

Bella Bird, the World Bank Country Director said that the project seeks to aid the introduction of new technologies at a scale which will better facilitate private sector financing and sustainable rural water supply.

The Community Based Water Supply Organizations (CBWSO) will be granted a 60 percent subsidy against loans which will be used to replace the diesel-powered generators with solar-powered pumping systems.

The organizations will be funded 40 percent of the total investment and they will be able to pay back the loan over a four-year period.

Featured Image Courtesy: The Citizen

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