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5th March 2014

European Investment Bank backs EUR 105m investment scheme to improve access to clean water sanitation in Tanzania

The European Investment Bank, Europe’s long-term lending institution, today formally agreed to back a new water infrastructure investment scheme expected to transform access to clean water and sanitation around the southern shores of Lake Victoria. It is expected that over 500,000 inhabitants of Mwanza, Bukoba and Musoma, as well as other communities around the Lake Victoria basin will benefit once the scheme is implemented.

The European Investment Bank’s engagement was formally agreed at a signature ceremony in Dar es Salaam today by the Hon. Saada Mkuya Salum MP, Minister for Finance and Pim van Ballekom, European Investment Bank Vice President.

“Clean water is essential for life and this project will improve health and transform the quality of life of hundreds of thousands of Tanzanians living alongside Lake Victoria. The European Investment Bank is committed to supporting crucial investment in water and sanitation around the world and is pleased to work alongside partners Agence Française de Développement, AfD and the EU through the EU-Africa Infrastructure Trust Fund, as well as the government here in Tanzania. This new project builds on the engagement demonstrated in a previous project in Dar es Salaam agreed in 2003.” said Pim van Ballekom, European Investment Bank Vice President.

"This new project will provide clean water and help to improve the health of Tanzanians around Lake Victoria. Ensuring clean water and improved sanitation is a priority for the Government of Tanzania. This new project follows the government's previous support in Iringa, Arusha and elsewhere across the country. Providing clean water is expensive in Tanzania, but creates huge health and social benefits for my countrymen." said the Honourable Professor Jumanne Maghembe M.P., Minister of Water for the United Republic of Tanzania.

"While addressing the needs of ordinary citizens, this project also supports fulfilment of the Millennium Development Goals and contributes to integrated water resources management, which is the key focus of EU water policy." said Filiberto Ceriani Sebregondi, European Union Ambassador to Tanzania.

Once complete 95% of the population of Mwanza will have access to clean drinking water and half the city’s inhabitants will benefit from improved sanitation. The transformational project will also create hundreds of jobs, both during implementation and when complete in 2019.

The European Investment Bank will provide EUR 45 million (Over 1 billion TSh) in a 20 year loan to the government of Tanzania. This engagement will be matched by French Development Agency, AfD. European financing will be alongside significant support from the government of Tanzania.

Project preparation and implementation will be supported by technical assistance totalling EUR 10 million. The technical assistance is provided by both the European Investment Bank and the European Union through the EU-Africa Infrastructure Trust Fund.

The European Investment Bank, Agence Française de Développement and Germany’s KfW are working together to support investment in key water infrastructure around Lake Victoria under the Mutual Reliance Initiative. This allows a single institution to act as the main point of contact with the project promoter. The European Investment Bank is in lead in Tanzania, Agence Française de Développement in Kenya and KfW in Uganda.

The Lake Victoria Basin Commission, UN Habitat, the East African Community and the European Union have all supported the scheme.

The European Investment Bank is the world’s largest lender for water investment worldwide and last year provided EUR 10.5 billion for investment in a range of sectors across Africa.

Background information:

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

Press contact:

European Investment Bank: Richard Willis, +352 621 555 758,

Website: – Press Office: +352 4379 21000 –

European Union Delegation to Tanzania: Tom Vens, +255 22 211 747,

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