PRIME MINISTER

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THE UNITED REPUBLIC OF TANZANIA

• PRIME MINISTERS OFFICE
• REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT
• ARUSHA MUNICIPALITY

FINANCING CITY INFRASTRUCTURE FOR ARUSHA
MUNICIPALITY
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1.0 INTRODUCTION

• Arusha Region is one of the 23 Regions of the
  United Republic of Tanzania. The Region is
  devided into six Districts of Arusha Region which
  includes Arumeru, Monduli, Ngorongoro, Longido,
  Arusha and Karatu districts. Further, the
  districts formed seven Local Government
  Authorities namely Meru and Arusha District
  Councils (fro Arumeru District), and Arusha
  Municipal, Karatu, Longido, Monduli and
  Ngorongoro district councils.

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2.0 Location

• Arusha Municipality is the headquarter of Arusha
  Region located in northern Tanzania between
  latitude 2o and 6o South and longitudes 34.50 and
  38 East. It has a unique character of being
  surrounded by Arumeru district in all directions.
  It is 50 kilometers West of kilimanjaro
  International Airport on the great North Road,
  halfway between Cape Town and Cairo, also 6kms
  from Arusha Airport.
• Arusha Municipality covers an area of 208 km2
  (20,800 Ha) out of 34,525 km2 (0.6) of the total
  area of Arusha Region. The allocation of land
  according to different activities is as follows
  Arable land 6,400 Ha, Pastures or grazing land
  100 Ha, Forests Hills 20 Ha, Building and
  Playing grounds 2,600 Ha and Roads and Rivers
  180 Ha.

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3.0 Climate

• The district experiences two rainy seasons in
  which short rains are between October and
  January, while long rains are between March and
  May.
• Amount of rains in these two seasons ranges
  between 500 to 1200 mm per annum, with a mean
  average of 844mm.
• The temperature is characterized by warm and
  cold temperatures ranging from 17 degc to 34
  degc. The cold season is between mid April and
  mid August, while the rest of the years are warm.

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4.0 Physical Features

• Arusha Municpal is located on the southern slopes
  of Mount Meru. It lies between 1,450 and 1,160
  meters above sea level.
• There are isolated hills, breaking up the gently
  sloping plains. These hills includes Themi,
  Suye, Nemas and many others.
• The Municipality is crossed by rivers and
  numerous small streams originated from the slopes
  of Mount Meru or on the slopes of the above
  mentioned hills. Such rivers includes Burka,
  Engarenaro, Naura, Themi and Kijenge, all of
  which converge to join Themi River to the
  Southern part of the Municipality.
• In particular the area to the South West of the
  Municipality has extremely extensive black cotton
  soils. During dry season it shrinks leaving
  cracks on the ground surface of up to 5mm wide
  and 1.5 deep, on average.

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5.0 Administrative Structures

• Administratively, Arusha Municipality has three
  divisions namely, Themi, Elerai and Suye which
  are subdivided into nineteen wards. These wards
  are Kati, Sekei, Themi, Kaloleni, Levolosi,
  Ngarenaro, Unga limited, Daraja mbili, Baraa,
  Sokon I, Elerai, Kimandolu, Oloirien, Sombetini,
  Terrat, Engutoto, Lemara, Moshono and Olasiti.

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6.0 Population

• Like all other urban centres in Tanzania, Arusha
  Municipality faces socio-economic challenges
  arising from rapid growth of urban population
  attributed by natural growth and rural-urban
  migration.
• The high population influx to Arusha is mainly
  due to two reasons. i) Arusha being a
  tourist town, the tourism industry has flourished
  in recent years.
• ii) The City is the major market for
  gemstones extracted from Mererani mines.
• It has the highest population density (about
  3,040 people per sqkm) in Arusha Region.
• The current population projection is estimated at
  476,890 people, however, over 100,000 people
  comes into Municipality in day time from
  neighbouring ditricts and leave in the evening.
• Annual population growth rate ( 1988 2002
  censuses) is 5.4, dependency ratio is 59, sex
  ratio ( male for every 100 females) of 97,
  Average household size ( Persons per household)
  is 4, and population of people with disability is
  0.66.

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7.0 Tourism

• Arusha is a local and International tourism
  centre in the northern part of Tanzania.
• It also serves as a transit point for tourists
  heading to the National Parks and to the highest
  Mountain in Africa ( The Kilimanjaro).
• It links to International destination through
  Kilimanjaro International Aiport.
• As the northern tourism circuit, it receives the
  majority of tourists to the country. There are
  eleven tourist hotels, 84 registered tour
  operator companies and an international
  conference centre (AICC).
• Tourist Attractions
• Arusha Municipality is the major urban centre in
  the northern Tourist circuit. The circuit is
  famous world wide for its ease accessibility to
  Mount Kilimanjaro, Arusha National Park, Lake
  Manyara National Park, Tarangire National Park,
  Ngorongoro Crater, Olduvai Gorge and Serengeti
  National Park.

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8.0 Social Economic Developments

• The economiy of Arusha Municipality depends on
  commerce, Industry, small scale Agriculture and
  tourism. Commerce and Industrial activities
  contribute significantly to the GDP of the
  Municipality.
• 52 of employed people are in business
  operations, 14 are employed in office duties,
  17 are casual labourers and 11 are in
  agriculture. The remaining 6 are in plant
  operations and Assembly.

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9.0 SOCIO ECONOMIC Services

• Similar to other urban centres in Tanzania,
  Arusha Municipality faces socio-economic
  challenges arising from rural-urban migration.
• Rapid growth in urban population which has
  resulted into mismatch between population and
  limited urban services.
• A large part of the Municipalitys population
  has no access to basic amenitees such as clean
  and safe water, proper and planned sanitation
  etc.
• Due to slow pace of economic growth, high urban
  migration has led to high levels of unemployment
  as well as under employment.

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10.0 HIV and AIDS

• HIV/AIDS continue to threaten the most productive
  part of the Arusha population.
• Since 1986 when the first cases were reported,
  the prevalence of HIV has been increasing,
  whereby at the end of 2006 the prevalance was
  found to be 14 among the VCT client and blood
  donors, while among the antenatal was 7.
• However, deaths from AIDS have decreased
  following the introduction of ARVs, where 315
  patients have been enrolled by 2010.

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11.0 FINANCING CITY INFRASTRUCTURE

• INTRODUCTION
• The basic system and services that are necessary
  for Municipality to run smoothly with respect to
  infrastructure includes buildings, Road network,
  Transport, Solid waste diposals, Health Services,
  Education as well as Market places.
• Services such as power and water supplies are
  taken care by Tanzania Electricity Supply Company
  ( TANESCO) and Arusha Urban Water Supply
  Sanitation Authority (AUWSA) respectively, in
  colaboration with Municipality.
• Financing the maintenance and development of
  the above noted Municipality infrastructure
  depends mainly upon three major sources, these
  are
• i) Municipality from own revenue collection.
• ii) Grants from Government of Tanzania (GOT) and
• iii) Development partners.

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12.0 Municipality Annual Budget for infrastructure

• i) Own Source
• The Municipality is facing challenges of
  insufficient
• funds to finance development projects, foristance
  in current
• financial year of 2010/2011 the council has
  budgeted TZS 1.8
• billion (USD 1.2 million) to finance Municipality
  infrastructure.
• Roads network alone required about TZS 3
  billion equivalent to 2 million US Dollas for
  maintenance and rehabilitation of roads.
• The funds were to be collected from defferent
  revenue sources such as parking fees ,
  Advertisement, markets and Bus stands fees.
  However, the performance did not meet the targets
  due to collection challenges that resulted to
  late disbursement of revenue from collection
  Agents, thus affecting service delivery to the
  community

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Annual budget Contd

• (ii) Government
• Central Government contributes TZS 10.1 billion
  (USD 6.7 million),
• Only 0.82 billion TZS ( 548,108 US dollar) goes
  to Municipality infrastructure
• The rest TZS 9.29 billions ( USD 6.2 USD 6.2
  million) is for Financing Operational costs of
  Personnel Emolument (PE) as well as other
  charges.

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Annual budget Contd

• (iii) Development Partners Funds
• Funds from different donners set for development
  projects in year 2010/2011 amounted to TZS 1.9
  billion ((USD 1.27 million).

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13.0 Budget for 2011/2012

• The budget for development projects for the
  financial year 2011/2013 increased from current
  of 4.3 billion ( USD 2.87 million) to TZS 23.37
  billion ( USD 15.58 million) attributed by the on
  going project known as Tanzania Stretagic Cities
  Project (TSCP) financed by World Bank in
  colaboration with DANIDA.The project worth TZS
  18.87 billioni (USD 12.58 million) and will
  finance the following sub projects
• (i) Rehabilitation of 14.93km of urban roads
• (ii) Construction of 0.8 km storm water drain
• (iii)Design and construction of landfill for
  solid waste desiposal,
• (iv) Installation of solar powered traffic
  lights.

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Thank you for Listening