The African Development Bank (AfDB) has approved a US$120M loan to fund the development of Tanzania’s 50 MW Malagarasi hydropower project. The project is aligned with Tanzania’s National Development Vision 2025 and its Second Five-Year Development Plan (2016/17 – 2020/21).
The hydropower plant will provide reliable renewable energy to 133,649 households, schools, clinics and small and medium-sized businesses in the Kigoma region. The project comprises several components: a run-of-the-river hydropower plant; a 54-km, 132 kV transmission line, which will connect to the national grid; a distribution network expansion that will provide rural areas with electricity; and project management and contract administration support.
Also read: Tanzania finalizing permit for its first rare-earth metals mine
According to Adesina Akinwumi, President of AfDB, the project “is a reflection of the Bank’s commitment to assist the Government of the United Republic of Tanzania to accelerate its transition to more inclusive and sustainable growth through the production of clean, reliable and affordable electricity.”
The project’s estimated cost is US$144.14M. The Africa Growing Together Fund will contribute an additional US$20M. The government of Tanzania will provide the remaining US$4.14M. The project is expected to create about 700 jobs during the development phase.
Source: Africa Oil & Power