In a significant move towards local financing for development projects, the United Nations Capital Development Fund (UNCDF) has emphasized the importance of leveraging local resources rather than relying solely on international funding. This stance was underscored during the launch of the Tanga UWASA Water Infrastructure Green Bond, a groundbreaking initiative aimed at mobilizing funds for essential water infrastructure projects over the next decade.
UNCDF Representative Peter Malika lauded the green bond as a National Alternative Financing Template, offering government entities a viable avenue to access substantial capital for advancing national development objectives. He emphasized the strategic significance of borrowing in local currency, a move that not only fosters financial independence but also attracts strategic partners to bolster the initiative.
The Tanga UWASA Managing Director, Engineer Geoffrey Hilly, shed light on the urgent need for alternative financing to support their ambitious 53 billion Tanzanian Shillings rehabilitation and expansion project. With water supply dwindling by 30 percent as of June 2023, the project aims to augment water availability by 60 million liters per day, catering to the needs of Tanga City residents and those in Muheza and Mkinga districts.
Among the project's key innovations are the installation of prepaid meters, initially numbering 4,000 with plans to expand to 10,000, and the expansion of the Mowe water treatment plant. These enhancements, including larger pipes and a larger storage tank, are poised to ensure round-the-clock water availability for city consumers.
Minister for Water, Jumaa Awesso, commended Tanga UWASA's proactive approach in seeking alternative financing avenues to align with the CCM Election Manifesto's commitment to water provision. He expressed optimism that the success of this initiative would inspire other institutions to explore similar financing mechanisms, reducing dependence on government funds and foreign aid.
Tanga Regional Commissioner Waziri Kindamba lauded the approval of the alternative finance model in 2021, highlighting Tanga's pioneering role in its adoption. Preliminary sales of the green bond indicate overwhelming interest, signaling Tanga's readiness for investment and setting a benchmark for other regions to emulate.
The launch of the Tanga UWASA Water Infrastructure Green Bond represents a pivotal step towards sustainable development financing, epitomizing the spirit of local empowerment and innovative financing solutions. As Tanga charts a course towards self-reliance in infrastructure development, the project serves as a beacon of hope and inspiration for communities striving for progress across Tanzania.