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WBank grants USD225m to upgrade urban services

Discussion in 'Habari na Hoja mchanganyiko' started by BabuK, Oct 31, 2012.

  1. BabuK

    BabuK JF-Expert Member

    Oct 31, 2012
    Joined: Jul 30, 2008
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    The World Bank Board of Executive Directors has approved an International Development Association (IDA) credit of USD255 million for new initiative to improve financial management performance of 18 local governments in the country.
    The funds are also meant to strengthen their ability to deliver urban services to 2.6 million Tanzanians.
    A statement availed to this paper from the World Bank yesterday said the Urban Local Government Strengthening Program (ULGSP) will use the Bank's new financing instrument known as Program-for-Results (P for R) that directly links disbursement of funds to verified development results.
    "The program will deliver a range of improvements in urban services, including construction of small bridges, installation of street lights, and improved waste management among others," it stated.
    The statement further said that the capacity-building component will support urban planning, revenue mobilization, strengthening of procurement practices and improved management of human resources. The funds are provided by the International Development Association.
    "Tanzania is urbanizing rapidly and 25 percent of Tanzanians are already living in the cities, a number that is expected to rise to over 40 percent of the country's population by 2030. Urban areas will play an increasingly important role in driving economic growth and meeting poverty reduction targets; hence improving access to services in urban areas is critical for improving the quality of life for ordinary Tanzanians and reducing poverty," said Philippe Dongier, World Bank Country Director for Tanzania.
    The urban local governments to benefit from the funds, includes; municipal councils of Tabora, Morogoro, Shinyanga, Sumbawanga, Moshi, Musoma, Songea, Singida, Bukoba, Lindi and Iringa.
    The town councils includes; Kibaha, Geita, Babati, Korogwe, Mpanda, Njombe and Bariadi. According to latest estimates, roughly six percent of the country's total population of 42 million people resides in these areas.
    Under this program, the selected urban local government authorities will be assessed annually on their progress made across a set of institutional and infrastructure implementation indicators and funds will only be disbursed once results are verified.
    "The program will decentralize responsibilities to the participating cities including procurement and contract management. In this way, the projects seek to build capacity through ‘learning-by-doing' for urban infrastructure development," said Barjor Mehta, Task Team Leader of the project.
    It said despite Tanzania's stable macroeconomic performance, poverty remains widespread. The new program is intended to address these challenges in the overall context of the National Strategy for Growth and Poverty Reduction (MKUKUTA II), the decentralization policy, and two of four key fundamentals of the Government's Vision 2025, namely; strengthening and establishing well-functioning institutions and markets; and provision of infrastructure.