The City of Mwanza has taken another major step towards addressing its long-standing water supply challenges after a concessional loan agreement worth TSh39 billion was signed to support the implementation of the Second Phase of the Butimba Water Source Project.
The agreement, signed in Mwanza between the European Union (EU) and the French Development Agency (AFD), is part of a major investment aimed at increasing water production capacity, strengthening distribution infrastructure and ensuring reliable water services for residents of Mwanza.
Currently, Mwanza City depends on two major water sources, Butimba and Capri Point, which together produce approximately 138 million cubic litres of water per day.
However, the city’s water demand has increased to approximately 188 million cubic litres per day, leaving a deficit of about 50 million cubic litres daily.
The implementation of the Second Phase of the Butimba Water Source Project is expected to significantly reduce this gap by increasing water production capacity to approximately 170 million cubic litres per day upon completion.
The project is part of the LV WATSAN programme and is expected to cost more than TSh600 billion. To support its implementation, the Government of Tanzania will receive a EUR190 million loan from the European Investment Bank (EIB) and other development partners, as well as a EUR12.93 million concessional loan from the European Union.
The funding will support expansion of water supply infrastructure and sanitation services, while responding to the growing demand driven by Mwanza’s rapid population growth and economic development.
Speaking during the signing ceremony, the EU Ambassador to Tanzania, Christine Grau, said the investment reflects more than five decades of partnership between Tanzania and the European Union.
She said through the Global Gateway strategy, the EU and its Member States have continued supporting Tanzania in implementing development projects in key areas including water, clean energy, digital transformation and agricultural development.
"Last year, we celebrated 50 years of partnership between the European Union and Tanzania. Today, we continue to strengthen this partnership through investments in the water and sanitation sector for the benefit of the people of Mwanza and Tanzania as a whole."
Ambassador Grau said Mwanza holds strategic economic importance as a gateway to the East African Community region, making it one of the key areas benefiting from cooperation between Tanzania and Team Europe.
She added that the EU has witnessed the impact of various projects it supports in Mwanza, including the SASA project, while the water sector remains one of its priority areas.
She also thanked the Mwanza Water Supply and Sanitation Authority (MWAUWASA), the Ministry of Water and regional authorities for their cooperation in preparing and implementing EU-supported water projects.
Meanwhile, the East Africa Regional Director of the French Development Agency (AFD) said the investment demonstrates the commitment of development partners to continue supporting Tanzania in improving essential services for citizens.
"Investment in the water sector plays a significant role in social and economic development. Reliable water services contribute to better health, business growth and overall community development."
The Infrastructure Programme Manager from the EU Office in Tanzania, Engineer Ally Chande, said the European Union has been a close partner in Mwanza’s water sector for more than 20 years.
He said besides supporting Butimba Phase Two, the EU is assessing possibilities of supporting preparations for the construction of a new water source at Kabangaja, which will help address future water demands in the northern parts of Mwanza City.
"For more than 20 years, we have worked together with Tanzania on water projects in Mwanza. We continue to look at the next steps to ensure water services grow together with the expansion of the city."
On his part, the Director of Water Supply and Sanitation Services Department at the Ministry of Water, Engineer Charles Mwafwili, said the project is part of the government’s strategy to address water challenges in Mwanza.
"This project will increase water production, reduce the gap between current demand and supply, and improve access to reliable water services for citizens."
The Second Phase of the Butimba Water Source Project is expected to commence soon and be completed within 12 to 24 months.
For Mwanza residents who have faced water supply challenges for years, the project is seen as a major milestone towards ensuring that water services match the pace of growth of the rapidly expanding city.









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