- The 50MW hydropower plant will be constructed in Western Tanzania and will provide power to about 133,649 households in the Kigoma region.
- The plant is expected to cost about $144.14 million with the AfDB providing a bulk of the funding and the government of Tanzania contributing $4.14 million.
- The facility is expected to create about 700 direct jobs as well as reduce power generation costs by 88 per cent.
The African Development Bank has approved a $120 million loan to finance the development of a 50MW hydropower plant in Western Tanzania. The Malagarasi Hydropower project will comprise of a run-of-the-river hydropower plant facility; a 54- km, 132 kV transmission line connecting to Tanzania’s national grid; a distribution network expansion operation for rural electrification and last-mile connections; project management and contract administration support; and compensation and resettlement of affected persons.
AfDb President Adesina Akinwumi stated that he project is part of the bank’s commitment to assist the Government of the United Republic of Tanzania to accelerate its transition to clean, reliable and affordable electricity for more inclusive and sustainable growth.
The project is estimated to cost $144.14 million. $120 million of this will come from the Bank Group’s sovereign window; an additional $20 million will be 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.
The hydropower plant will average annual output of 181 GWh and will provide energy to about 133,649 households in Kigoma significantly increasing electricity access rate in the region.
The Plant will create about 700 construction jobs, reduce energy generation costs by 88 per cent to $0.04/kWh, limit the country’s reliance on fossil fuels leading to a more diverse energy mix and energy security for Tanzania.