Tanzania Signs EUR 361.1 Million Agreement With WB for Phase 2 of Dar es Salaam Metropolitan Development Project

On 21st February 2024, the Government of Tanzania signed with the World Bank an agreement worth EUR 361.1 million (about TZS 995 billion) to implement Phase II of the Dar Es Salaam Metropolitan Development Project (DMDP II).

The signing ceremony of the contract was held in Dar es Salaam between the Minister of Finance, Hon. Dr. Mwigulu Lameck Nchemba, and the Country Director of the World Bank, Mr. Nathan Belete.

Speaking after signing the contract, the Minister of Finance, Hon. Dr. Mwigulu Lameck Nchemba, stated that DMDP II will continue to improve critical public infrastructure in the districts of Ilala, Temeke, and Kinondoni, which were covered in Phase I of the project, as well as expanding the scope of infrastructure improvement in the districts entering the project for the first time, namely Ubungo and Kigamboni.

He said the project aims to continue the implementation of the National Five-Year Development Plan 2021/22–2025/26, the Election Manifesto of the ruling party Chama cha Mapinduzi (CCM) for the term 2020 -2025, and the agenda of the Sixth Government under the leadership of Her Excellency Dr. Samia Suluhu Hassan, President of the United Republic of Tanzania, which aims to expand and improve infrastructure and services in Dar es Salaam.

“This includes the construction and improvement of road networks to reduce congestion and enhance connectivity, water drainage systems to mitigate flood impacts, and market infrastructure to provide business opportunities and economic activities to improve the lives of Dar es Salaam residents,” Dr. Nchemba noted.

Furthermore, Hon. Dr. Nchemba stated that Phase II of the project considers the resilience to climate change effects in infrastructure construction, and environmentally friendly projects aimed at assisting and mitigating the impacts of climate change.

On his part, the Country Director of the World Bank, Mr. Nathan Belete, expressed pride in the bank’s contribution to the growth of Dar es Salaam. He mentioned that over the past 15 years, the bank has allocated USD 1.5 billion for the city’s development.

He cited the successful outcomes of their involvement in the development of Dar es Salaam, such as the completion of Phase I of the Dar Es Salaam Metropolitan Development Project, which was worth USD 300 million and finished last year.

“This project constructed 207 kilometers of roads and four bus terminals, improving transportation for over 3.5 million people, and built 75 kilometers of water drainage and three flood control reservoirs, reducing flooding risks for people living in a 400-hectare flood-prone area,” Mr. Belete said.

He added that the project also built 10 markets and six open spaces for citizens to relax, providing economic opportunities and access to goods, making the city a better place to live.

Mr. Belete noted that the project also established systems to enhance the capacity of local governments in revenue collection, development control implementation, and infrastructure planning and maintenance.

The Minister of the President’s Office, Regional Administration and Local Government, Hon. Mohamed Mchengerwa, stated that his ministry will oversee the project thoroughly and ensure timely implementation.

He mentioned that the project aims to construct 250 kilometers of roads, address solid waste management challenges, and build 18 modern markets, nine bus terminals, and large stormwater drainage systems to reduce flooding in Dar es Salaam.