Tanzania to receive €385m for infrastructure

5 August 2009

Some €385 million (£327.5 million) is to be given to the United Republic of Tanzania via government channels in an effort to provide it with infrastructure and budgetary support.

The European Commission announced this week it has given approval for the Annual Action Programme 2009, which will fund four separate projects in the country and help to enable pro-poor economic growth.

Progress with renewable energy will receive €8 million of this total, as only a tenth of Tanzanians have access to electricity. Power blackouts are common and rationing was implemented during much of 2006.

Another €2 million will go towards helping the National Authorising Office boost its capacity to implement schemes and projects, as well as effectively tackle the issue of poverty.

Infrastructure development for creating a road transport sector policy programme will be assisted by €70 million of the funding. It is hoped this initiative will work on providing a framework for all sub-sectors of the industry.

Finally, the remaining €305 million will be supplied as general budget support over a six-year period.

Karel De Gucht, commissioner for development and humanitarian aid, described the financial commitment as "substantial".

Categories: General, Transport, Energy

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