Tanzania on Thursday signed a loan agreement with France to finance water supply projects that will benefit some 770,000 people in the country's Morogoro municipality.

The French government will extend the loan worth about $76 million to Tanzania through its French Development Agency (AFD), said Dotto James, the Permanent Secretary in the Ministry of Finance and Planning who signed the agreement on behalf of Tanzania.

"Upon completion, the water supply in the Morogoro municipality will increase from the current 37,000 cubic meters a day to 108,000 cubic meters a day," James told a press conference following signing ceremony in Morogoro.

Stephanie Mouen, AFD Country Representative for Tanzania, said the project will improve the well-being of the people in Morogoro municipality and it will also improve the environment of the area.