The Project concerns water and sanitation investments and capacity building in three towns:
Mwanza: a new Waste Water Treatment Plan (WWTP) will be developed, together with a sewer network to collect the waste from the highly polluting commercial area of Igoma. Investments will also be made in the water supply to optimise the use of new water infrastructure. A large programme of sanitation for Mwanza’s informal areas is also included in the Project, as are water and hygiene facilities for 250 schools.
Musoma and Bukoba are already benefiting from investment programmes for water supply, and this Project complements these investments with the initiation of centralised wastewater systems.
EIB and AFD are aiming to co-finance the project through a EUR 90 million sovereign loan in the framework of the Mutual Reliance Initiative (MRI) with EIB in the lead. The EU-AITF IRS will be applied to the EIB loan to comply with the IMF concessionality requirement of a grant element of 35% for public lending to the Government of Tanzania. AFD obtained an IRS for this project from its own resources, ensuring equivalent economic and financial viability of the project and meeting the same grant requirement. The first disbursement related to Priority Works and Immediate Investment Plans was made end 2016.