World Bank loans Tanzania $300 mln to improve city

DAR ES SALAAM (Reuters) - Tanzania will get a $300 million concessional loan from the World Bank's International Development Association (IDA) to help improve roads and other facilities in its commercial capital of Dar es salaam, the bank said. Fast-growing Dar es Salaam generates more than 40 percent of Tanzania’s GDP but is exposed to a range of risks from climate change, including flooding, sea level rise, coastal erosion, water scarcity and insect-borne diseases. The credit from IDA, which gives grants or low-interest loans to the world's poorest countries, will boost the capacity of local governments in the east African country’s biggest city of 4.6 million people to better plan and provide services. Philippe Dongier, World Bank Tanzania country director, said in a statement seen by Reuters on Wednesday that investments in infrastructure over the next five years would help improve a city envisaged to have 10 million people in 15 years. The bank said the funding will improve services directly for 1.9 million residents in the city, one of the fastest-growing in Africa, by preventing flooding, easing urban mobility, and improving basic infrastructure in low-income communities.