[Tanzania] Dar Gets $240m Poverty Credit From World Bank

from All Africa

Deus Gabone
Dar Es Salaam

Tanzania last week signed two credit agreements with the World Bank worth US$240million for the implementation of the 4th Poverty Reduction Support credit (PRSC 4) and the Accountability Transparency and Integrity Project (ATIP).

The agreements were signed in Dar as Salaam last week at the treasury by the Permanent Secretary to the Treasury, Mr. Gray Mgonja and the World Bank's Country Director for Tanzania, Ms Judy O'Connor.

The first agreement for $200million is for the poverty reduction credit that will support the country's budget on implementation of the Tanzania's National Strategy for Growth and Reduction of Poverty (MKUKUTA). The second credit agreement worth $40million will be used to finance the country's ATIP.

Speaking at the signing ceremony, Mr. Mgonja said: "The PRSC 4 will mainly focus on education, health and water."

He said the support deepens the World Bank's commitment to develop priority areas under the MKUKUTA strategy.

The PRSC4 will also support policy reforms to improve the environment that strengthen economic infrastructure, improve good governance and public financial management, as well as support the continuation of sound macro economic strategies.

However, he expressed the need for additional support for both for primary education programme (PEDP) and secondary education development (SEDEP) which he said were grossly under funded.

On the second credit on accountability project and transparency, Mr Mgonja said the money would support the implementation of legal division and public financial management, as well as strengthen capacity of oversight.

O'connor urged the Tanzania government to improve and broaden its revenue base in a bid to help self-fund the country's projects that have been under funded by external source.

She also emphasized solving the country's energy and infrastructure bottlenecks if it is to achieve the Millennium Development Goals.