The Government of the United Republic of Tanzania and Sweden, represented by Swedish International Development Cooperation Agency (Sida) have on 22 of December 2008 in Dar es Salaam, signed a new Agreement on Development Cooperation to provide funds to the Strengthening Policy, Legal, Regulatory and Institutional Framework to support the Development of a Sustainable Bio Fuel Industry in Tanzania. Sweden supports the implementation and monitoring of the project with an amount of SEK 12 million. The Government of the Kingdom of Norway through the Norwegian Ministry of Foreign Affaires (MFA) will support the implementation of the project with NOK 11 million and has agreed to channel their support through Sweden as the Lead Donor.
“This project will also look into instruments to facilitate the domestic use of bio fuel, to complement the use of bio mass and fossil fuels, and thus has a potential positive environmental impact”, says Erik Korsgren, Head of Development Cooperation at the Swedish Embassy.
“Bio fuel production presents both important possibilities and potential challenges to Tanzania, and developing a clear national framework for this industry is therefore important”, says Jon Lomøy, Norwegian ambassador to Tanzania.
The specific development objective is to contribute to a well regulated sustainable bio fuel industry contributing to important development objectives of Tanzania such as energy security and reduced dependency on oil import, food security, environment protection, human health, macroeconomic growth and an expanded tax base.
The project will be carried out the coming two years up to end of 2010 and implemented by the Ministry of Energy and Minerals.
For more information please contact Jan Grafström at Embassy of Sweden: +255 (0)22 21 96 500 and Marianne Damhaug at the Royal Norwegian Embassy: +255 (0)782 77 70 20