WB APPROVES $255M LOAN

Washington. The World Bank (WB) board of executive directors has approved an International Development Association (IDA) credit of $255 million for a new initiative to improve financial management performance of 18 local governments and strengthen their ability to deliver urban services to over 2.6 million Tanzanians.

A statement released in Washington recently, a copy of which was e-mailed to The Citizen, had it that the Urban Local Government Strengthening Programme will use the bank’s new financing instrument known as Programme-for-Results (P-for-R) that directly links disbursement of funds to verified development results.

The programme will deliver a range of improvements in urban services, including construction of small bridges, installation of streetlights, and improved waste management among others.

The capacity-building component will support urban planning, revenue mobilisation, strengthening of procurement practices and improved management of human resources. The funds are provided by the International Development Association.

“Tanzania is urbanising rapidly as 25 per cent of its population already lives in cities, a number that is expected to rise to over 40 per cent of the country’s population by 2030. Urban areas will play an important role in driving economic growth and meeting poverty reduction targets. Improving access to services in urban areas is critical for improving the quality of life of ordinary Tanzanian citizens and reducing poverty,” said Mr Philippe Dongier, WB country director.

The authorities will include municipal councils of Tabora, Morogoro, Shinyanga, Sumbawanga, Moshi, Musoma, Songea, Singida, Bukoba, Lindi and Iringa.

The town councils include Kibaha, Geita, Babati, Korogwe, Mpanda, Njombe and Bariadi. According to latest estimates, the country’s total population is 42 million.