Africa-Press – Tanzania. DEPUTY Minister for Water, Engineer Kundo Mathew said yesterday that the government is actively diversifying funding sources to strengthen the National Water Fund, including investing in bonds and developing project proposals to attract financing from international climate funds.
He said the initiative has already yielded results, with 17.35 million US dollars secured through the African Development Bank’s (AfDB) Climate Change window.
The deputy minister made the remarks in the National Assembly while responding to a question from Bahi MP Kenneth Nollo (CCM).
Mr Nollo had inquired when the government would introduce a bill to ensure the Water Fund has a reliable source of financing.
In his response, the Deputy Minister said that while the fund already receives steady financing from a levy of 50/- per litre on diesel and petrol sales, the government is committed to expanding these sources to ensure sustainable funding for water infrastructure projects across the country.
“Currently, the primary reliable source of funding for the National Water Fund is the 50/- levy from diesel and petrol sales,” Eng Mathew explained.
However, the deputy minister explained that for the government to boost the fund’s capacity, it has initiated additional strategies including bond investments and project proposal development aimed at accessing global climate financing.
He emphasised that the efforts are part of a broader government strategy to ensure the fund fulfills its mandate of supporting water supply projects, especially in underserved and rural areas.
“The government will continue to seek more sources to strengthen the fund’s financial capacity so it can effectively fulfill its duties,” he added.
The National Water Fund plays a critical role in supporting the development and sustainability of water supply systems throughout Tanzania.
With climate change and population growth increasing pressure on water resources, reliable and diversified funding is essential.
The government’s move to tap into international climate finance is seen as a forward-thinking approach to securing long-term investment in water infrastructure and stakeholders have praised the effort as vital to achieving national water access goals.
Meanwhile, Eng Mathew confirmed that the first phase of the Kaisho-Isingiro Water Project is nearing completion, with 95 per cent of the work already done and efforts are underway to secure funding for the second phase.
He was responding to a question from Kyerwa MP Innocent Bilakwate (CCM), who asked when the second phase of the Rutunguru–Kaisho–Isingiro Water Project would commence to ease the burden of water scarcity faced by local residents.
The Deputy Minister said that the first phase of the project includes the construction of a 225,000-litre water tank and the laying of 17 kilometres of water pipes.
The project aims to improve access to clean water for over 37,500 people living in 11 villages: Kaisho, Nyabishenge, Ibare, Ishaka, Karukwanzi A, Karukwanzi B, Kihanga, Kaitambuzi, Katera, Rutunguru and Nyakakoni.
“The implementation of this phase has reached an average of 95 percent and is expected to be completed by June 2025. The government is currently working on securing funds to begin the second phase of the project,” he said.
The second phase is expected to expand water supply coverage to additional areas, further easing water shortages that have long affected communities in Kyerwa District.
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