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Integrating Pipe Suppliers’ views for the development of a concept for financing water infrastructure in the IFF-OBA Programme
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The IFF-OBA team spent the last month investigating how supplier credits for financing infrastructure in the water sector are practiced in Tanzania and subsequently evaluated the potential integration of these supplier credits into the IFF-OBA Programme.
The team met with five local pipe suppliers in Dar Es Salaam to obtain their views and experi-ences in providing pipes on long-term credit terms to water utilities. Commercial Banks were likewise interviewed taking into account their views regarding supplier credits. The IFF-OBA team also visited the Moshi Urban Water Supply and Sewerage Authority (MUWSA) to better understand procurement and tendering processes for goods such as pipes.
The IFF – OBA would like to thank all the suppliers, commercial banks and water utilities that took the time to share their experiences and ideas with the IFF-OBA team.
SHUWASA PROJECT ASSESSMENT VISIT
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From 29.05.2018 to 31.05.2018, the IFF team visited the Shinyanga Water Supply and Sanitation Authority. The main aim of the visit was to assess the existing water supply situation and the proposal that was submitted to IFF-OBA.
The team explored the 18,000m3 water storage tank which is fed by KASHWASA bulk water from Lake Victoria. Due to high pressure the water is distributed to four elevated break pressure tanks that have a capacity of 250m3 each.
The team also visited the earmarked project areas in Ndembezi, Butengwa, Masekelo and Kitangili to assess the tapping point and to conduct meetings with Mtaa leader. Those meetings were instrumental to assess the prevailing water situation in the areas and the future customer’s willingness to pay for the water connection.
INTERIM VISIT TO TUWASA AND MUWSA
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From 18th April 2018 – 20th April 2018 and from 14th May 2018 – 16th May 2018, the IFF Consultant conducted an interim visit to Tabora Urban Water and Sewerage Authority (TUWASA) and Moshi Urban Water and Sewerage Authority (MUWSA), respectively. The aim of the visits was to assess the documentation of financial expenditure and to clarify some inconsistencies that occurred in the interim report.
COOPERATION WITH BANKS IN TANZANIA
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The IFF-OBA team visited NMB, TIB, CRDB and NBC in March 2018 to discuss their role in financing Water Authorities, seek to understand their key requirements in lending and whether there is a possibility of negotiating loan terms offered in their term sheets. All four banks expressed their strong interest in cooperating with water authorities to finance projects. They commonly considered the IFF Programme and the potential OBA subsidy as beneficial to the successful implementation of projects.
RECEIPT OF IFF-OBA GRANT FOR THE IRINGA URBAN WATER SUPPLY AND SANITATION AUTHORITY (IRUWASA)
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On 22.12.2017,Iringa Urban Water Supply and Sanitation Authority (IRUWASA) confirmed the receipt of the IFF - OBA grant of TSH 275,000,000.
PROJECT ASSESSMENT VISIT TO MAFINGA- UWASA (MAUWASA)
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The IFF-OBA team carried out a project proposal field assessment in Mafinga from 19/09/2017 to 20/09/2017. The assessment included visits to the existing water supply infrastructures, specifically water intake structure at Ikangafu stream, existing and planned water storage tanks, chlorination unit and pumping station at Ikangafu.
The team also assessed the proposed project area for the distribution network extensions and held meetings with “Mtaa Leaders” from different Wards. The main reason for the meeting was to discuss the water supply problems and ascertain from the local representatives the extent of affected people, their current sources of water and their ability and willingness to pay for water once connected to the new network.
The utility will now revise their proposal according to the Consultant’s comments and re- submit it to the IFF-OBA Office. On the basis of the revised proposal the Consultant will prepare a comprehensive assessment report that includes a financial analysis of the proposed project.
RECEIPT OF IFF-OBA GRANT FOR THE TANGA URBAN WATER SUPPLY AND SANITATION AUTHORITY (TANGA UWASA)
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On 05.09.2017,Tanga UWASA confirmed the receipt of the IFF - OBA grant of TSH 1,230,376,415.
Signing of Grant Agreement for Tabora UWASA
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On 19.05.2017, the IFF – OBA Steering Committee approved the Tabora Water Supply Extension Works Project that will be implemented by the Tabora Urban Water Supply and Sanitation Authority (TUWASA). The Grant Agreement between the MoWI and TUWASA was signed on 12.06.2017.
Approval of IFF – OBA Grant disbursement for the Tanga Urban Water Supply and Sanitation Authority (Tanga UWASA).
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On 19.05.2017, the IFF – OBA Steering Committee approved the Grant disbursement for the Tanga City Water Supply Improvement Project that has been implemented by Tanga UWASA. The utility has achieved all Output Targest and qualifies for an IFF – OBA grant of TSH 1,230,376,415.
Project assessment visit to Moshi- UWASA
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The IFF-OBA team carried out a project proposal field assessment in Moshi from 23rd to 24th May 2017. The assessment included visits to the project area, specifically to the Mang’ana intake in the slopes of Mount Kilimanjaro and to the locations of the proposed storage tanks. Meetings were conducted with Village Government leaders of Uru North and South and Newland / Mvuleni to assess the resident’s level of support and willingness to pay for this water supply project.
Project assessment visit to Sumbawanga- UWASA
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{jcomments off}The IFF-OBA team carried out a project proposal field assessment from 29th to 31st May 2017. The team visited the proposed project areas in Eden, Katuma as well as 3 out of 19 existing and new boreholes which were constructed in the context of the Seven Towns Urban Upgrading Programme.
