Sh600bn to be spent on commercial city’s infrastructure

Dodoma. The government will spend about Sh600 billion ($300 million) during the 2015/16 financial year to improve the city of Dar es Salaam, a minister has said.

Minister of State in the Prime Minister’s Office, Regional Administration and Local Government, Ms Hawa Ghasia, said here yesterday that the money will be foreign sourced under the Dar es Salaam Metropolitan Development Project (DMDP).

Presenting her ministry’s progress report and projects slated for implementation in the 2015/16 financial year, Ms Ghasia said the World Bank will give Tanzania a $300 million loan for the project.

“Madam Speaker, during the 2015/16 financial year, the DMDP will be implemented with a $300 million World Bank loan,” she said shortly after the Prime Minister sought Parliament’s endorsement for Sh5.764 trillion budget for all the institutions, organisation and authorities that fall under the Prime Minister’s Office for the 2015/16 financial year.

Among the projects to be implemented include improving municipal roads that are linked to the Dar es Salaam Rapid Transit (Dart).

Part of the money will also be directed to cushioning the city from the effects of flooding that routinely hit Dar es Salaam whenever the rainy season comes. “The money will also go towards strengthening the process of revenue collection, strengthening the institutional and urban management systems of the Dar es Salaam Local Authorities,” she said.

The project is divided into three main phases—with the first one being to improve the road infrastructure. It will also improve the drainage system in a move that seeks to check recurrent flooding in all the three municipalities of Temeke, Kinondoni and Ilala.

The second phase of the project will involve improving basic infrastructure including roads, bridges, pavements, street lights and issues pertaining to environmental management.

The third phase will see Tanzania improving the capacity of its various institutions so they can improve service delivery to city residents.

A total of $23.4 million will be spent on compensations for people who will have been affected by the project. Already, some Sh17 billion of the money has already been issued and will be spent during the 2015/16 financial year.

Ms Ghasia directed all municipal and district councils to start using electronic systems in revenue collections.