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The AfDB will provide $140m in loan funding to Tanzania for the construction of a hydropower plant.
- The funds will also be used to add 4,250 rural electrification connections.
- The AfDB has approved six infrastructure projects in Tanzania with a total value of $1.12b over the last three years.
The African Development Bank Group and the Government of Tanzania have signed loan agreements to finance the construction of the 50MW Malagarasi hydropower plant in Western Tanzania. The agreements cover a $120 million sovereign loan from the Bank and $20 million from the Africa Growing Together Fund (AGTF), administered by the Bank.
Emmanuel M. Tutuba, Permanent Secretary at the Tanzania Ministry of Finance and Planning, and Nnenna Nwabufo, Director General of the Bank Group’s East Africa Regional Development and Business Delivery Office, signed the agreements.
The funds will be used to construct the plant and an evacuation transmission line, as well as to add 4,250 rural electrification connections, providing reliable renewable energy to households, schools, clinics and small and medium-sized enterprises in the Kigoma Region.
Tutuba said, “I would like to re-affirm the government’s commitment to working closely with the Bank in efforts to realize our national and international development aspirations. The government will take all necessary measures to ensure successful implementation of this project as planned.”
The project is one of Tanzania’s priorities under its Second Five-Year Development Plan and will also advance the objectives of the country’s Vision 2025. It also aligns with two of the Bank’s High Five strategic priorities, namely, Light up and Power Africa and Improve the quality of life for the people of Africa.
Read also: AfDB to Provide $120m Financing for Tanzania hydropower plant
Nwabufo said, “The signing of the loan agreements is another testimony of our joint commitment to working together to support Tanzania’s development aspirations. Malagarasi Hydropower is one of the flagship projects in Tanzania’s Second Five-Year Plan. We appreciate the trust the Government has put in the African Development Bank and we are committed to remaining a privileged and trusted partner of choice.”
The Bank Group’s total ongoing commitment in Tanzania, about $2.33 billion in value, covers the key sectors of transport, energy, water supply and sanitation, agriculture, governance and finance.
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