THE government has signed a 440bn/- loan agreement with the World Bank (WB) through its International Development Association (IDA) for the Tanzania Productive Social Safety Net (PSSN) project which falls under the Tanzania Social Action Fund (TASAF).
Along with the signing, the two parties
have approved 10 projects worth 1.9trl/- in sectors that include energy,
roads, agriculture, health, education and water supply.
Speaking at the signing ceremony, the
Permanent Secretary in the Ministry of Finance and Planning and the
Paymaster General, Dr Servacius Likwelile, said that the programme aims
at creating a comprehensive, efficient, well-targeted PSSN for the poor
and vulnerable citizens in the country.
"The funds will help in the
implementation of the TASAF cash transfer programme which is designed to
improve access to food for eligible and duly registered households. The
initiative is also tailored to create incentives for investment in the
education and health of children in poor communities," said Dr
Likwelile.
He added that the funds would also
assist TASAF in carrying out a programme involving activities designed
to strengthen implementation of its initiatives. "I wish to thank the
World Bank team for the dedication and hard work carried out in the
preparation of this project and others involved in the process to make
it possible for the signing," he noted.
According to the PS, the government is
committed to ensuring that the development objective of the project is
attained. This will greatly contribute to the goal of reducing extreme
poverty through consolidation of the social safety net system by
reaching all the poor households in the country.
The World Bank has also selected
Tanzania to be among the few member countries of IDA who are eligible to
benefit from IDA 17 Scale-up Facility due to the country's good track
record in macroeconomic performance.
It is this performance that has enabled
the GDP to continue to grow at an average of seven per cent over the
past ten years. "Through the facility the government has committed
440m/- to support the Rural Electrification Expansion project under the
Rural Electrification Agency (REA)," the PS pointed out.
For the first time the WB has allowed
the government to access financial resources from the International Bank
for Reconstruction and Development (IBRD), a commercial window.
Following such move, the government is
in discussions with the World Bank to finalize the preparations of the
negotiation for a credit worth 1,320bn/- to support the development and
modernization of Dar es Salaam Port.
On her part, the Country Director of the
World Bank (WB), Ms Bella Bird, pointed out that the bank was delighted
with the programme's implementation -- the reasons to why they are
injecting additional funds.
"The TASAF programme has reached 1.1
million people which is equivalent to 15 per cent of poor households in
the country. This programme is such a moving project especially when you
visit the beneficiaries in their communities," Ms Bird noted.
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