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November 18, 2010

Grant Agreement for Poverty Reduction Strategy

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On November 18, 2010, JICA Tanzania and the Government of the United Republic of Tanzania signed a grant agreement for Japanese grant aid for Poverty Reduction Strategy. The total amount of the grant is 470 million Japanese Yen, equivalent to approximately 8.5 billion Tanzanian Shillings.

This grant will be used for three basket funds in the following areas: 1) Agricultural Sector Development Programme (320 million yen), 2) Local Government Reform Programme Phase II (50 million yen) and 3) Local Government Development Grant (100 million yen).

Mr. Yukihide KATSUTA, Chief Representative of JICA Tanzania, and Mr. Ramadhani M. Khijjah, Permanent Secretary of the Ministry of Finance and Economic Affairs of the United Republic of Tanzania, signed the Grant Agreements after the signing of Exchange of Notes by H.E. Mr. Hiroshi Nakagawa, the Japanese Ambassador to Tanzania.

These basket funds correspond to the priority sectors set by the Japanese Government to support Tanzania. ASDP basket is being utilized for the promotion of a broad range of agricultural development activities at field level with a view to increasing agricultural production/productivity and poverty reduction. While Local Government Reform basket supports Tanzania’s effort to implement effective Decentralization policy in the country, Local Government Grant system provides discretionary funds to Local Government Authorities which will contribute to improve service delivery to the community under the decentralization policy.

Exchange Rate: 1 Yen=18.10 Tsh (November 16, 2010)

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