Signature of EUR 93 millions concessional loans to improve access to water and electricity in Tanzania

On July 10th 2015, Dr. Hamisi H. Mwinyimvua, Deputy Permanent Secretary of the Ministry of Finance of the United Republic of Tanzania, H.E Mrs Malika Berak, Ambassador of France in Tanzania and Mr Yves Boudot, Regional Director of the Agence Française de Développement (AFD) and signed two Credit Facility Agreement for a total amount of Euros 93 million (equivalent to TZS 223 billion) in concessional loans provided by AFD to the United Republic of Tanzania.

In its continued support to the Government of the United Republic of Tanzania in the Water and Sanitation sector, AFD will contribute 40 Million Euros to the financing of the second Water Sector Development Programme (WSDP II), launched by the Ministry of Water on September 22nd 2014. This contribution to the national programme will allow the development of water production, storage, distribution and sanitation facilities in rural and urban areas, as well as reinforce the capacity of the Ministry and the utilities to run these new investments.

Moreover, the Agence Française de Développement will finance a project in the Energy sector, through a concessional loan of Euros 53 Millions for the rehabilitation and upgrade of TANESCO grid. 10 sub-stations will be rehabilitated, the SCADA and communication system revamped as well as Tanesco Optic fibre network extended. The project will result to reduction of technical losses on Tanesco transmission infrastructure and consequently increase in the quantity and reliability of power supplied and the grid system.

These projects will have positive impacts both on the social and economic development of the country and on climate change, by reducing greenhouse gas emissions (i.e. reduction of electricity losses) and by supporting the adaptation of the population to the effect of climate change (i.e. reduction of water losses and preservation of water resources).

Tanzania and France are strengthening their unique partnership under which AFD is providing financial assistance to support development projects in Tanzania with an emphasis on the Water and Energy sectors. Since 2009, up to 314 million Euros (TZS 628 billion) have been provided by AFD Group to Tanzania.

The meeting also gave the Ministry of Finance and the Agence Française de Développement the opportunity to sign a complementary establishment agreement that takes into account the installation an AFD office in Dar Es Salaam since 2007 and the significant increase of its activity to support the development of Tanzania.

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Dernière modification : 31/07/2015

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