11 January 2014

Tanzania: Delays in Fund Allocation Stall Moshi Projects

Moshi — DELAYED allocation of funds for various development projects in Moshi has stalled their implementation and now have to grapple with yet another challenge of rising costs of construction and operations.

Moshi Municipal Executive Director, Mr Fulgence Mponji yesterday told Moshi councillors that only 22 per cent of the approved budget had been released by November, last year.

In his detailed report, Mr Mponji said that allocated funds were 5.7bn/- for financial year 2013/14 for projects in different sectors but hardly 1.24bn/- had been received.

Implementation of many projects had not even started by the end of the second quarter of the 2013/14 financial year due to lack of funds irrespective of the approval by the acceptable body.

"Generally, implementation of many development projects had not started until the end of second quarter of 2013/14 financial year. Only initial preparations for the projects were carried out," noted Mr Mponji.

Mr Mponji said further delays of projects implementation was caused by bureaucracy and complicated processes in procurement and delayed preparations.

Moshi Municipal Council (MMC) this week approved budget proposals amounting to 57.3bn/- 2014/15 fiscal year. Another challenge encountered in the budget implementation was rise in prices against the approved budget estimates. That was partly due to delayed release of funds as well.

Mr Mponji said the municipality suffered in revenue collection due to fall in farmers' income that emanated from low production of coffee, the main cash crop in the district, hence low contribution from citizens to the council.

The director unveiled also that there has been a tendency of liquidity preference so that monies are left in the accounts instead of being spent on projects, especially at ward and village levels.

Another problem was initiation of big projects while funds allocated were not enough. There are now many uncompleted projects in the district and generally need for money surpasses actual availability.

The Municipal Council covers about 59sq. kms and is administratively divided into 21 wards.

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