Africa-Press – Tanzania. Tanzania’s power sector received a massive boost after the country yesterday secured 323.4bn/- for financing the mega Malagarasi Hydropower Project.
The fund, a concessional loan from the African Development Bank (AfDB) will crucially bankroll the crucial project that will massively improve power supply in western parts of the country.
The government of Tanzania and the AfDB signed the concessional loan agreement in Dar es Salaam yesterday.
Permanent Secretary in the Ministry of Finance and Planning, Emmanuel Tutuba and AfDB Director General, East Africa Regional Development and Business Delivery Office, Nnenna Nwabufo inked the papers.
Speaking after the signing ceremony, Mr Tutuba said that the project is intended to add 49.5 megawatts to the national grid and that it will include construction of a power transmission line and expansion of the distribution network.
He said the distribution will involve rural electrification to increase power supply capacity to the areas.
The project will also build capacity to Tanzania Electric Supply Company (TANESCO) on distribution of equipment for connecting 4,250 customers in Kigoma, Kibondo and Kasulu, including 1,000 poor households, four dispensaries and six primary schools.
Mr Tutuba, further assured AfDB that the government will use the fund for the intended purpose in order to foster socioeconomic transformation.
“This project will include construction of a new power generation plant with the capacity of generating 181GWh annually in order to improve power supply and reduce power generation by using diesel-powered plants,” Mr Tutuba said.
He expressed gratitude to AfDB and other development partners for their continued support to Tanzania by funding various development projects which aligned with Tanzania Development Vision 2025.
According to Mr Tutuba, the project is expected to cost 144.1m US dollars where the bank will provide 120m US dollars equivalent to 83 per cent while Africa Growing Together Fund contributed 20m US dollars raised from government of the People’s Republic of China and the government of Tanzania will provide the remaining 4.1m US dollars.
On her side, Nwabufo said, Malagarasi Hydropower project was one of the priority projects during the implementation of the Second Five Year Development Plan intended to contribute to the attainment of the country’s vision 2025.
She added that the project was one of the six transformative infrastructure projects approved by the Board of Directors of the AfDB Group in the last three years for the government of Tanzania with a total of 1.12bn US dollars.
Nwabufo noted that the other five projects were Dodoma City Outer Ring Road with 180m US dollars, Msalato International Airport valued 271m US dollars Regional Kabingo-Kasulu- Manyovu road 256m US dollars, Bagamoyo -Horohoro-Lunga- Lunga-Malindi road 150m US dollars and Nyakanazi-Kigoma transmission line valued 123m US dollars.
She noted that the signing of the agreement will increase the amount of funds set aside by AfDB for financing power projects in Tanzania from 325.19m US dollars to 465.19m US dollars equivalent to 1.07tr/-.
Nwabufo added that the hydropower project is part of the implementation of the bank’s priorities of increasing investment in the energy sector in order to spearhead industrial development and improve the livelihood of Africans.
