UN-HABITAT, on 6 February 2004 signed a Memorandum of Understanding with the government (Ministry of Lands and Human Settlements Development) which sets a framework for cooperation and guidance for the implementation of this programme in Tanzania. This MoU also specifies that the programme will be implemented gradually in a number of cities, Arusha being the first from where the experience will gradually be replicated in other locations.

The Cooperation Agreement and project outline were prepared and signed by the Arusha Mayor and the UN-HABITAT Executive Director on 25 May 2004. The implementation process of this first phase is 1 June 2004 to 30 May 2005, and the proposed budget is US$ 70,000 from UN-HABITAT and Tsh. 35 million from the Tanzanian Government.