The funds to be issued through the French Development Agency (AFD) will facilitate expansion of water distribution and increase the amount of water supplied from the current 37,000 cubic meters to 108,000 m3 per day.
The credit facility agreement was signed yesterday in the capital, between Treasury Permanent Secretary Doto James and AFD Country Director Stephanie Mouen Essombe.
Speaking at the ceremony, the PS said completion of the project will facilitate access to clean and safe water services to Morogoro Urban residents.
“This project will contribute to attaining the requirement of 126,253 m3 per day by 2035, to cover 95 percent of the region’s population,” he said.
The funds will also be spent to enhance the region’s sewerage services coverage from the current five percent of the population to 15 percent.
Tanzania has been a major beneficiary of AFD support mostly in energy, water, transport (roads and bridges) and the agriculture sector.
AFD has indicated that it will provide financing totaling euro 1,021.7 million, (2.39trn/-) for the next few years, he said.
The agency has so far extended euro 154.5m in financial support worth (387.6bn/-) through grants and loans, he said.
The country director said the agency’s support to water and sanitation projects is aimed at improving people’s livelihoods.
The agency aims to reduce water losses by 10 percent by the year 2025, with some AFD funded projects cited as the Water Sector Development Plan II - Basket Fund worth euro 40 million.
There is also a euro 53m loan for the TTGRUP project, a global machine tools outfit, including the rehabilitation of Tanzania Electric Supply Co. Ltd (TANESCO) Geita -Nyakanazi power line and substations.
Other projects are water supply in Mwanza and sanitation in Bukoba and Musoma worth euro 45m and technical assistance for water supply in Mwanza and sanitation in Bukoba and Musoma project worth euro 1.5 million.
The preparation and capacity building fund phase four totals euro 0.5million for projects listed under FERC (Federal Energy Regulatory Commission).These include electricity, natural gas, hydropower, oil matters, natural gas pipelines, LNG terminals, hydroelectric dams and electric utilities where euro 0.5m will be availed for phase V as well.