Climate-Resilient Water Supply: Building the Business Case for Water Operators

In Hanang District, Tanzania, water services remain unreliable due to climate-related floods and mudslides, high operational costs, and diesel-dependent systems. Through DGBP support, African Power Machinery (APM), Grundfos, and WaterAid Sweden are piloting a commercially viable public-private partnership (PPP) rural water operator model that combines solar-hybrid technology with smart metering. The model aims position APM as a climate-resilient private operator delivering reliable, inclusive water services to 14,000 people in Bassotu Ward while building a scalable, investment-ready business case for rural water operations. 

Expected outcomes include strengthened climate resilience through continuous service delivery, improved water security, and a financially sustainable operator model. By reducing system downtime and operational costs, the project unlocks productivity gains, time savings, and livelihood opportunities, with a focus on women and youth, while demonstrating a bankable pathway for scaling private-sector-led rural water services in Tanzania. 

Administrative Partner WaterAid Sweden, WaterAid Tanzania (WAT)
Key Commercial Partner Grundfos Holdings A/S
Other Partners African Power Machinery TZ limited (APM)
Country Tanzania
Sector Water
Open / Closed Open
Duration January 2026 - December 2029
Approval Year 2025