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Push To Improve Service Delivery



             NEWS RELEASE


New Push to Improve Service Delivery to 2.6 million Tanzanians US$255 million to strengthen 18 local governments


WASHINGTON, October 24, 2012 – The World Bank Board of Executive Directors yesterday approved an International Development Association (IDA*) credit of US$255 million for a new initiative to improve financial management performance of 18 local governments and strengthen their ability to deliver urban services to 2.6 million Tanzanians.

The Urban Local Government Strengthening Program (ULGSP) will use the Bank’s new financing instrument known as Program-for-Results (P for R) that directly links disbursement of funds to verified development results.  The program will deliver a range of improvements in urban services, including construction of small bridges, installation of street lights, and improved waste management among others.  The capacity-building component will support urban planning, revenue mobilization, strengthening of procurement practices and improved management of human resources.  The funds are provided by the International Development Associaton.*

“Tanzania is urbanizing rapidly and 25 percent of Tanzanians are already living in cities, a number that is expected to rise to over 40 percent of the country’s population by 2030.  Urban areas will play an increasingly important role in driving economic growth and meeting poverty reduction targets.  Improving access to services in urban areas is critical for improving the quality of life of ordinary Tanzanian citizens and reducing poverty,” said Philippe Dongier, World Bank Country Director for Tanzania.

The urban local governments include municipal councils of Tabora, Morogoro, Shinyanga, Sumbawanga, Moshi, Musoma, Songea, Singida, Bukoba, Lindi and Iringa. The town councils include Kibaha, Geita, Babati, Korogwe, Mpanda, Njombe and Bariadi.  According to latest estimates, roughly six percent of the country’s total population of 42 million people resides in these areas.

Under the Program, the participating urban local government authorities will be assessed annually on progress made across a set of institutional and infrastructure implementation indicators and funds will only be disbursed once results are verified.

“The program will decentralize responsibilities to the participating cities including procurement and contract management. In this way, the projects seek to build capacity through ‘learning-by-doing’ for urban infrastructure development, said Barjor E. Mehta, Task Team Leader of the project. “The Bank will support the implementation of the program to strengthen institutional systems and improve local governance”.

Despite Tanzania’s stable macroeconomic performance, poverty remains widespread. While urban areas in the country have been growing at twice the rate of growth in rural areas, investments in urban infrastructure have not kept pace with the population growth, resulting in poor or declining access to urban infrastructure and services in several sectors. The new program is intended to address these challenges in the overall context of the National Strategy for Growth and Poverty Reduction (MKUKUTA II), the decentralization policy, and two of four key fundamentals of the Government's Vision 2025, namely; strengthening and establishing well-functioning institutions and markets; and the provision of infrastructure.

* The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing loans (called “credits”) and grants for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 81 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change for 2.5 billion people living on less than $2 a day. Since 1960, IDA has supported development work in 108 countries. Annual commitments have increased steadily and averaged about $15 billion over the last three years, with about 50 percent of commitments going to Africa.


Contacts:
In Washington D.C.: Sarwat Hussain: +1 202 473-4967 Shussain@worldbank.org
In Dar es Salaam: Loy Nabeta: +255 687 014 425, lnabeta@worldbank.org
For more information on the World Bank’s work in Tanzania, please visit www.worldbank.org/tanzania/ 
For more information on the World Bank’s work in sub-Saharan Africa, please visit www.worldbank.org/afr  For more information on IDA, please visit: www.worldbank.org/ida 
Visit us on Facebook: http://www.facebook.com/worldbankafrica Be updated via Twitter: http://www.twitter.com/worldbankafrica For our YouTube channel: http://www.youtube.com/worldbank
News Release
2013/114/AFR




Loy Nabeta
Communications Officer
World Bank
50 Mirambo Street
Tel: +255 22 216 3246
Fax: +255 22 211 3039
Dama: 5355 3246
P. O. Box 2054
Dar es Salaam
Email: lnabeta@worldbank.org

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