The board of directors of the African Development Bank (AfDB) approved a 120 million dollar loan to fund the construction of a 50MW hydropower plant in western region of Tanzania that will provide renewable energy to households, clinics, schools and small and medium-sized enterprises in the Kigoma Region.
The Malagarasi Hydropower project has several components: a run-of-the-river hydropower facility; a 54 km long, 132 KV transmission line that will connect to Tanzania’s national grid; a distribution network expansion operation that includes rural electrification and last-mile connections; project management and contract administration support; and compensation and resettlement of affected persons.
Adesina Akinwumi, Afdb Bank President noted that approval of 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 and more inclusive and sustainable growth through the production of clean, reliable and affordable electricity.”
The project’s overall cost is estimated at 144.14 million dollar. The bulk of the funding 120 million dollar will be sourced from the Bank Group’s sovereign window, with an additional 20 million dollar contributed by the Africa Growing Together Fund – a co-financing fund with resources from the government of the People’s Republic of China that is administered by the bank. The government of Tanzania will provide the remaining 4.14 million dollar.
The Malagarasi Hydropower plants expected average annual output will be 181GWh which will meet the electricity needs of as many as 133,649 Kigoma households, bringing the region’s electrification rate more closely in line with the rest of the country.