- $66,336,000Original Compact Project Amount
- $54,568,652Total Disbursed
Estimated Benefits
| Time | Estimated Economic Rate of Return (ERR) over 20 years | Estimated beneficiaries over 20 years | Estimated net benefits over 20 years |
|---|---|---|---|
| At the time of signing | 12 percent | 2,801,856 | $2,902,240 |
Estimated benefits corresponds to $63.1 million of project funds, where cost-benefit analysis was conducted.
Project Description
Tanzania continues to face a serious shortage of access to potable water because of an aged and dilapidated water supply infrastructure. The inadequate water supply and quality contributes to a high incidence of water-related diseases, decreased workforce productivity and constrained business growth. The Water Sector Project focused on improving water production and treatment infrastructure in the cities of Dar es Salaam and Morogoro in order to increase the supply of treated water in the system.
Residents of Dar es Salaam are expected to benefit from a 90 million liter per day expansion to the Lower Ruvu Water Treatment Plant—the main source of treated water in the country’s capital. In order to convey this water to the city, the project funded designs for a 55-kilometer water main that was constructed with government funds. As a result of construction delays and fluctuations in seasonal water volumes, the Lower Ruvu Water Treatment Plant and Transmission Main works were not completed by the end of the compact. In March 2014 the government committed to funding and completing the water works post-compact. In March of 2016, the government completed and commissioned the Lower Ruvu transmission main.
In Morogoro, the project funded the rehabilitation of both the Mambogo and Mafiga Water Treatment Plants to improve quality and quantity of water, improve major components of the distribution network to include a 1.9-kilometer main, and provide 10,000 customer meters and more reliable customer collection and management tools and training. Due to construction delays the water treatment plants were completed after the compact by the Tanzanians, impacting the percentage of operations and maintenance costs recovered and the volume of water produced by the two plants at compact end.
Finally, MCC funded the development of a rate case to achieve cost recovery of operations. These rate case applications were prepared, submitted and received approval from the regulator.
Evaluation Findings
MCC is conducting an impact evaluation of the Lower Ruvu Plant Expansion and Morogoro Water Supply Activities of the Water Sector Project. This evaluation will measure the project’s impact on the availability, reliability and quality of water in the cities of Morogoro and Dar es Salaam. It will also study intermediary outcomes stemming from improved water access and quality, such as improvements in health, time use and household incomes. An interim evaluation report is expected in July 2017, while the final report is expected to be available in 2018.
Key performance indicators and outputs at compact end date
| Activity/Outcome | Key Performance Indicator | Baseline | End of Compact Target | Quarter 1 through Quarter 20 Actuals (as of Dec 2013) | Percent Compact Target Satisfied (as of Dec 2013) |
|---|---|---|---|---|---|
| Lower Ruvu Plant Expansion Activity | Operations and maintenance cost recovery (%) | 108 | 151 | 131 | 53% |
Volume of water produced (million liters per day)
|
180 | 270 | 171.42 | -10% | |
| Morogoro Water Supply Activity | Operations and maintenance cost recovery (%) | 100 | 115 | 95.15 (Q17 - Q20) | -35% |
Volume of water produced (million liters per day)
|
23 | 33 | 28.91 | 59% |
MCC continues to examine these indicators, which were likely influenced by factors beyond the MCC projects and therefore may not accurately represent the impact of the MCC investment alone. In the case of the Lower Ruvu Plan Expansion Activity, the indicator performance reflects the fact that the Lower Ruvu Transmission main, which was critical to transporting the increased supply of water to customers, was not completed by the government until March 2016, three years after the end of the compact.