At least half the money would be spent on water and sanitation projects, but there would also be significant contributions towards health projects and budgetary support, Detles Mey, the Tanzania country director of the German government's aid agency, the Gersellschaft fuer Technische Zumsammenarbeit (GTZ), told IRIN in the Tanzanian commercial capital, Dar es Salaam, on Wednesday. He said that of the total sum the German financial cooperation body, Kreditanstalt fuer Wiederaufbau, would deliver €59 million, while the remaining €21 million would be channelled through GTZ.
He said €40.1 million had been earmarked for projects to improve rural water supplies, largely through the rehabilitation of old water management and treatment plants, and support for improved sanitation systems in rural areas. "We have a long tradition and a lot of experience in working in the water supply sector," Mey said. "Other donors have not really joined us, so we thought this is where we would focus our efforts."
He added that, through Germany's €10-million contribution towards the Poverty Reduction Support Credit, Tanzania would, after Uganda, become the second country in Africa to receive German money for budgetary support.
"After the experience of other donors, we are happy that the country has matured, there is the capacity, and the Ministry of Finance can manage funds properly, so we feel we can jump on the train," he said.
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