ADF provides US$125 million loan for water and sanitation in Dodoma

TANZANIA – The Board of Directors of the African Development Fund (ADF) has approved a US$125.3 million loan to finance the first phase of the Dodoma Resilient and Sustainable Water Development and Sanitation Program in Tanzania.

Specifically, the loan from the African Development Fund, the concessional window of the African Development Bank Group, will cover the construction of a dam and water treatment plant to address supply challenges in Dodoma City and the towns of Bahi, Chemba and Chamwino.

The program aims to improve water supply for multi-purpose use by developing water resources for Dodoma City and the three towns.

It is expected to enhance access to potable water for two million people and provide better sanitation services for about 1.5 million people by 2051. Around 52% of the beneficiaries will be female.

It will also ensure the sustainability of the water resources with related improved community management by catchment protection and management and build resilience against climate change and variability.

The program will create more than 640 jobs (140 permanent and 500 temporary) during the construction and operation of the dam and the water treatment plant.

“The program will contribute towards the attainment of national targets and Sustainable Development Goals on water and sanitation by 2030 and strengthen water, sanitation and hygiene services as essential barriers to waterborne diseases, including prevention against Covid-19, in communities, healthcare facilities, schools, and other public places,” the Bank’s Director responsible for Water Development and Sanitation, Osward Chanda, said.

The Bank Group is financing 94% of the US$132.9 million estimated cost of the first phase. The Tanzanian government will provide counterpart funding of the remaining 6%. The Ministry of Water will execute the program, which is expected to take off in March 2022.

The proposed program is part of a series of infrastructure projects supported by the Bank Group in Tanzania, aimed at accelerating the achievement of the country’s long-term development aspirations of becoming a middle-income and semi-industrialized economy by 2025, as outlined in the Tanzania Development Vision 2025.

The program also aligns with the Bank Group’s Ten-Year Strategy (2013-2022) objectives of inclusive growth and gradual transition to green growth. It is expected to contribute to one of the Bank’s High 5 priorities, namely improving the quality of life of the people of Africa.

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