THE UNITED REPUBLIC OF TANZANIA PRIME MINISTER S OFFICE

THE UNITED REPUBLIC OF TANZANIA PRIME MINISTER’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT ARUSHA MUNICIPALITY FINANCING CITY INFRASTRUCTURE FOR ARUSHA MUNICIPALITY

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.

2. 0 Location Arusha Municipality is the headquarter of Arusha Region located in northern Tanzania between latitude 2 o and 6 o 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 6 kms from Arusha Airport. Arusha Municipality covers an area of 208 km 2 (20, 800 Ha) out of 34, 525 km 2 (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.

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 844 mm. 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.

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 5 mm wide and 1. 5 deep, on average.

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.

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%.

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.

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.

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 Municipality’s 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.

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.

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.

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

Annual budget……… Cont’d (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 million) is for Financing Operational costs of Personnel Emolument (PE) as well as other charges.

Annual budget……… Cont’d (iii) Development Partners Funds from different donners set for development projects in year 2010/2011 amounted to TZS 1. 9 billion ((USD 1. 27 million).

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. 93 km 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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