Saudi Fund for Development approves loan for water supply project in Tanzania

The Saudi Fund for Development (SFD) has signed an agreement with the Tanzanian Government to financially support a drinking water supply project in the Mara region.

A loan of SAR56.25m ($15m) will be provided to assist the drinking water project and provide potable water to three towns and villages.

The agreement was signed by SFD vice-president Yousef Bin Ibrahim Al Bassam and Tanzanian Finance Minister Dr William Mgimoa.

According to Mgimoa, the project has been designed to improve potable water services for both rural and urban communities by developing an integrated water network to supply water from Lake Victoria to the targeted areas in the Mara region.

The project also aims to improve health, lower the chances of water-borne diseases and reduce poverty in the region.

The SFD provides loan without conditions, funds are quickly and easily available and repayment terms are up to 50 years with a ten-year grace period.

The outright grant component of such loans can amount to 60% of the total, while the cost of loans is generally just 1%.

In January, Tanzania started a water project in the Musoma municipality of Mara at a cost of TZS40bn ($25.1m) to provide safe and clean drinking water to residents in the area. The project is being funded by the French Development Agency.

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Image: The Saudi Fund for Development will provide loan to support drinking water supply project in Mara, Tanzania. Photo: courtesy of Pemanducomm.