Govt Seeks new Funding for National Water Fund

DODOMA: Deputy Water Minister Kundo Mathew said yesterday that the government is actively diversifying funding sources to strengthen the National Water Fund, which includes investing in bonds and presenting international climate fund proposals.

The African Development Bank’s (AfDB) Climate Change window has already secured 17.35 million US dollars through the initiative.

In the National Assembly, the deputy minister replied to Bahi MP Kenneth Nollo (CCM).

Asked when a bill would be introduced to ensure that the Water Fund has reliable funding, Mr. Nollo inquired.

Deputy Minister said that the government is committed to increasing these sources of funding for water infrastructure projects across the country, even though the fund currently receives steady funding from a levy of 50/- per litre on diesel and petrol sales.

Eng Mathew explained that the 50/- levy from diesel and petrol sales is currently the only reliable source of funding for the National Water Fund.

As part of the government’s strategy to boost the fund’s capability, the deputy minister indicated that it has initiated additional strategies, such as bond investments and proposal development aimed at accessing global climate financing.

It is part of a larger government strategy to ensure the fund fulfills its mandate of supporting water supply projects, especially in rural and underserved areas.

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“The government will seek more sources to strengthen the fund’s financial capacity so that it can carry out its duties effectively,” he said.

Throughout Tanzania, the National Water Fund plays a critical role in supporting the development and sustainability of water supply systems.

Reliable and diversified funding is essential as climate change and population growth increase pressure on water resources.

In securing long-term investment in water infrastructure, the government is tapping into international climate finance, an approach praised by stakeholders as essential to achieving national water access goals.

Eng Mathew confirmed the first phase of the Kaisho-Isingiro Water Project is nearly complete, with 95 percent already completed, and efforts are underway to secure funding for the second phase.

During the meeting, he answered a question from Kyerwa MP Innocent Bilakwate (CCM), who asked when the Rutunguru-Kaisho-Isingiro Water Project’s second phase would begin to ease local residents’ water scarcity.

According to the Deputy Minister, the project’s first phase involves building a 225,000-litre water tank and laying 17 kilometers of water pipes.

In 11 villages: Kaisho, Nyabishenge, Ibare, Ishaka, Karukwanzi A, Karukwanzi B, Kihanga, Kaitambuzi, Katera, Rutunguru and Nyakakoni, this project will improve access to clean water for over 37,500 residents.

The implementation of this phase has reached 95 percent and is expected to be complete by June 2025. Currently, the government is working on securing funding for the second phase of the project.

Further easing water shortages in Kyerwa District is expected with the second phase, which will expand water supply coverage to additional areas.