Tanga — The United Nations Capital Development Fund (UNCDF) has stressed the importance of local institutions to seek local financing rather than international financing to carry out development programs.
Speaking at the launch of a ten-year 53bn/ Tanga UWASA Water Infrastructure Green Bond, UNCDF Representative Peter Malika referred to the green bond as a National Alternative Financing Template that government entities could use to access significant capital to achieve national development goals.
The UNCDF supported and guided the negotiations that culminated in the setting up of the Tanga UWASA sub-national water infrastructure green bond. " Borrowing in local currency makes a lot of sense. It has brought on board strategic partners to help with the venture," Malika added, highlighting the fund's commitment to improving the local financing system.
Tanga UWASA Managing Director, Engineer Geoffrey Hilly, explained why they sought alternative financing to carry out their massive 53bn/- rehabilitation and expansion project, which will increase water supply to 60 million liters per day and serve consumers in Tanga City and parts of Muheza and Mkinga districts.
"By June 2023, the water supply had declined by 30 per cent. The funds would help to increase water supply, and we expect Tanga water coverage to reach 100 percent within 24 hours," he remarked.
He stated that some of the project's major innovations include the installation of prepaid meters, with the facility beginning with 4,000 and plans to install 10,000, as well as the expansion of the Mowe water treatment plant, which will include the installation of larger pipes and the construction of a larger tank to store water, allowing city consumers to have access to water 24 hours a day.
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Jumaa Awesso, Minister for Water, complimented Tanga UWASA for exploring alternative funds to accelerate the goal of providing water in conformity with the CCM Election Manifesto.
According to Awesso, the success of the approach will encourage other institutions to seek alternate finance rather than relying on the government or foreign donors.
"Water facilities should operate autonomously. I encourage other facilities in the country to follow Tanga UWASA's lead and seek alternative financing to implement water projects," he said.
Tanga Regional Commissioner Waziri Kindamba said the alternative finance idea was approved in 2021, and he was happy that Tanga is the first to adopt it.
"We chose, last year, to set standards, and preliminary sales indicate that the green bond is reportedly oversubscribed. This demonstrates Tanga's readiness for business, and we will not turn away investment," he said.
