Accelerating Solar Water Pumping via Innovative Financing

Rural water schemes in Tanzania continue to experience low functionality rates, largely due to high recurrent energy costs, weak asset management, and limited technical capacity within Community-Based Water Supply Organizations (CBWSOs). Diesel-powered systems have proven to be both financially unsustainable and environmentally inefficient. Furthermore, weak revenue management is a major hindrance to sustainability; as a result, many rural water schemes face partial or full non-functionality, primarily linked to Operation & Maintenance (O&M) financing gaps and governance constraints. This project aims to address these challenges by retrofitting inefficient diesel-powered pumps in targeted regions with environmentally friendly solar pumping systems, thereby decarbonising off-grid water pumping in rural Tanzania and reducing the cost of water extraction. Additionally, the project will install prepaid water meters to increase revenue collection and provide technical training to CBWSO management teams to improve their overall managerial performance.

The "Tanzania Accelerating Solar Water Pumping via Innovative Financing" project seeks to retrofit existing inefficient diesel-powered pumps in targeted regions with environmentally friendly solar pumping systems, thereby decarbonising off-grid water pumping in rural Tanzania and reducing the cost of water extraction. This endeavour represents a strategic shift away from grant dependency and is the first attempt to leverage private sector financing within Tanzania’s rural water supply sector. The project is implemented across four regions of mainland Tanzania: Dodoma, Singida, Shinyanga, and Mtwara.

1. Selection and training of CBWSOs: Capacity building focused on the operation and maintenance of water schemes, specifically regarding solar pumping systems and the repair and maintenance of prepaid water meters.
2. Technical assessments and database development: Evaluation of existing water schemes to identify technical specifications for intervention, including the installation of solar panels, accessories, and prepaid water meter dispensers.
3. Financial contribution agreements with CBWSOs: To strengthen local ownership, each participating CBWSO is required to contribute 1.5% of the total investment costs.
4. Annual project performance monitoring: Continuous follow-up on the functionality of water schemes is conducted annually to identify and address operational and maintenance challenges