The governments of Germany and Tanzania yesterday signed a bilateral development negotiation minute amounting to euro 176 million (equivalent to 352bn/-) for the national development plan for the years 2012/2014.
Addressing reporters yesterday during the signing ceremony, Ramadhani Khijjah, permanent secretary in the ministry of Finance and Economic Affairs, said the two governments signed the minute following two-day negotiations held on Tuesday and Wednesday.
The permanent secretary said the amount which will be made available to the government will be allocated to different development sectors in the country.
He said out of euros 176 million, euro 137.5 million will be for financial cooperation and a total of euro 38.5 million will be for technical support.
“We have a number of sectors that we have agreed and allocated amounts to strengthen their capacity in terms of finance. However, other than financial assistance there is the issue of technical support which is also important,” he said.
Khijjah identified the beneficiary sectors as general budget support (euro 18m), water (euro 15m), health (euro 42.5m) and the National Audit Office (euro 3.5m).
Other sectors include the Public Financial Management Programme (PFMRP), local government and technical area.
With the successful conclusion of the negotiations, he said, Germany will make availability the amount during the next three years 2012-2014.
With regard to the Controller and Auditor General’s Office, the permanent secretary said the support is mean to strengthen the office’s activities in effectively monitoring the government expenditures.
Head of the German delegation Dr. Ralph Mohs said the support was a new strategic focus of his government on the growth enabling infrastructures in line with the five-year Development Plan and MKUKUTA.
“As the Federal government we commit continues support in implementing the core governance reforms, especially the public services and local government reforms, with a view to improving the quality of social services provision in the country,” he said.
“Tanzania is among the largest beneficiaries of German development cooperation worldwide…it is essential to enhance the effectiveness and efficiency of our cooperation. Together we want to achieve demonstrable results, it’s critical to increase accountability especially in times when money is tight,” Dr. Mohs said.