Tanzanian Association Oslo

Norway disburses

Sh.55 billion for

roads construction

By Claud Mshana 

Norway has released Sh55.2 billion pledged last year in aid to Tanzania, the Government has said. 

The money was transferred to the General Budget Support (GBS), in accordance with the initial agreement reached between the countries in September last year. 

At the signing of the second agreement in Dar es Salaam yesterday, Finance and Economic Affairs minister Mustafa Mkulo said the money would be used for road projects in the country. 

He said the decision to release the funds to the GBS was in line with the principles of the Joint Assistance Strategy for Tanzania (Jast). 

The Jast clearly states that GBS is the Government´s most preferred aid delivery modality, as it contributes to the reduction of transaction costs, and makes use of existing structures and systems," he said. 

The minister said the system would also increase national ownership of the development agenda. 

In 2006, Norway also transferred aid funds to Tanzania's primary education to the GBS. There were fears, initially, that the system would have a negative impact on support for the education sector. 

But Mr Mkulo said contrary to the fears, primary education funding had continued to be satisfactory. In the second agreement, Norway has committed a total of Sh131.4 billion to the GBS for the financial years 2008/09 and 2010/11. 

The government is expecting to receive the first disbursement of Sh48 billion as soon as possible, minister Mkulo said yesterday. 

The funds would be directed to projects on economic growth and poverty reduction.

Source: The Citizen (Tanzania)