Tanzania: US$ 42 million for Zanzibar water and sanitation project

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Tunis, 11 November 2008 - Efforts to improve water supply and sanitation in Zanzibar have received strong support from the African Development Bank (AfDB) Group which on Tuesday in Tunis, approved a combined loan and grant of 28 million Units of Account (UA*), about US$ 41.8 million, to finance the island's water and sanitation project.

The UA 25 million (US$ 37.2 million) loan from the African Development Fund, the concessionary window of the AfDB Group, and € 3.14 million from the Rural Water Supply and Sanitation Initiative (RWSSI) Trust Fund, will be used to finance institutional development support, rural and urban water supply and sanitation as well as water resources management components of the project over four years.

The project aims at improving water supply and sanitation services in rural and urban communities through integrated water resources management with a view to improving the health and social wellbeing of the people through equitable provision of adequate water and sanitation services at affordable cost and on a sustainable basis.

The target beneficiaries of the proposed project will be the urban areas of Chake Chake, Wete, and Mkoani with a total urban population of 70,832 and nine rural areas in Ugunja and Pemba with 95,214 people. In addition, 276,000 students from the rural schools in Ugunja and Pemba will benefit from the school's water and sanitation activities. On completion, the project is expected to bring general improvements in public health within the project areas, curtail water-borne diseases, and ensure environmental sustainability. It will also help in the eradication of poverty and contribute towards meeting the Millennium Development Goals.

The project is in line with the Zanzibar's Vision 2020 and its Poverty Reduction Plan (ZPRP 2007-2010), which is focusing on the provision of social services and improving livelihoods through increased access to clean, safe and affordable water, sanitation and sustainable environment.

The Bank Group has been active in the sector in the mainland since 1976. Its participation in developing Zanzibar's economic and social sector strategies gives it an edge in implementing such projects.

The overall cost of the project is estimated at 33.30 million UA. The ADF loan and RWSSI grant will finance 84% of the costs. The remaining amounts will be provided by the Tanzanian government, UN HABITAT and the beneficiaries.

The Bank Group commenced operations in Tanzania in 1971. To date, the institution's cumulative commitment in the country stands at US$ 1.75 billion for 106 operations.

* 1 UA = US$ 1.48830 as at 119/11/2008

CONTACTS - Felix Njoku - Tel: +216 71 10 26 12 Fax: +216 71 10 37 52 - Email: f.njoku@afdb.org