According to the minister, the government will not spare the Korean firm if it fails to complete the work within its expected schedule which is 2019.
The minister delivered the challenge on Tuesday during the inking of the deal between the Korean firm and the Arusha Urban Water Supply and Sewerage Authority (AUWSA).
“I challenge the contractor to finish his task within the specified time, we will not spare him if he fails to do so,” said the minister.
The project which extends to Meru and Hai Districts will see the drilling of 56 wells in areas of Magereza, Mbuguni, Majimoto and Tengeru.
President John Magufuli is expected to unveil the project, whose groundwork started in July 11, 2016 once it comes to fruition.
The minister also pleaded with Arusha residents to desist from cutting down trees in a bid of protecting water sources.
Funded by the African Development Bank Group (AfDB), the three-year project will focus on rehabilitating existing water sources and facilities and construction of new ones, including boreholes and pumping station installations, rehabilitation and construction of transmission pipelines and the rehabilitation and construction of distribution pipelines in Arusha.
It will also focus on the improvement of sanitation and hygiene within Arusha urban.
Earlier on, AUWSA executive director Eng Ruth Koya said once the project comes to fruition the water authority will be capable of generating 200 million liters a day from the initial 40 million liters.
This, according to Eng Koya equates to 100 per cent water distribution, from the previous 44 per cent.
“Once it materialises, the project will tremendously increase the network of users from an average 325,000 to 600,000 customers also expand the availability of clean water from 312 kilometers to 667 kilometers and at the same time expand sanitation services to 40 per cent,” she said.
On his part, Arusha District Commissioner Gabriel Daqarro said the project comes at an opportune time when the city grappled with a serious water shortage.
“Most residents living in areas like Moshono, Kiserian, Muiret, Olmoti and Sombetini are experiencing dry taps, we hope the project could even last until 2030 and do away with water shortages,” the DC explained.
With a population of 416,442 the city of Arusha runs short of reliable supply of clean water.
The city, which depends on Pangani River Basin as its water source has recently been experiencing water shortages following an ever rising population growth in the region.
Since 2010, AUWSA service area has almost expanded to cover 208 kilometer, yet the existing sanitation network covers only the Central Business District of the city and serves only 7.6 per cent of inhabitants.