THE government has signed three grant agreements for €25.68m (78.58bn/-) with the German Development Bank (KfW).

Dr Natu Mwamba, the Treasury permanent secretary, said that expected disbursements will support projects in water infrastructure, climate resilience and biodiversity conservation.

She listed three projects to be financed under the pact, namely an investment financing facility output-based approach (IFF-OBA) which was allocated €10m (30.6bn/-), designed to incentivise water authorities to access commercial loans for infrastructure development.

Under the scheme, qualified authorities that meet performance criteria will receive a grant covering up to 50 percent of eligible project costs, with a cap of €1m per project, she stated.

The second project is a feasibility study for climate-resilient towns where a total of €680,000 (2.08bn/-) will be needed, ahead of a planned €15m project aimed at enhancing water supply and sanitation infrastructure in underserved towns in Lindi and Mtwara regions.

Targeted areas include Liwale, Michiga, Likokona, Nyengedi, Mtua, Longa and Kiwalala, she said, pointing at the third project as the sustainable development of protected areas with €15m (45.9bn/-) allocated, for safeguarding the Serengeti and Katavi-Mahale ecosystems, she specified.

The Serengeti ecosystem development and conservation project promotes sustainable land use and biodiversity preservation, while the Katavi-Mahale corridor conservation project targets conservation of habitats and biodiversity.

Noting that it will also foster socio-economic benefits for surrounding communities, she expressed deep appreciation to the FRG authorities for ongoing support, highlighting that the projects are aligned with Vision 2025 and its third five-year development plan ending this financial year.

She saluted Germany’s historical contribution to Tanzania’s progress in various areas, recalling its €70m pledge arrived in bilateral talks in March 2024, noting that the support reflects the strong and longstanding partnership between the two countries.

 “We look forward to successfully implementing these newly signed projects,” she said, reaffirming the government’s commitment to ensure effective implementation of the funded projects.

Manuel Muller, the deputy head of mission at the embassy, stated that the signing of the three agreements is a new stage in financial cooperation between Tanzania and the development bank.

Christoph Tiskens, the KfW director for East African countries, said that the agreements represent another step forward in bilateral relations which have remained strong since the 1960s.