- The approximate cost of execution of the Kakono HPP is 325 million US dollars.
- AfDB would remain a committed partner in achieving the country’s development aspirations.
The government has signed a 161.47 million US dollars loan agreement with the African Development Bank (AfDB) to implement the Kakono Hydropower Project (Kakono HPP). During the signing ceremony in Dar es Salaam yesterday, Minister for Finance and Planning, Dr Mwigulu Nchemba, said the overall development objective of Kakono HPP is to increase on-grid energy production from least-cost renewable sources to address electricity deficits in north-western Tanzania.
Dr Nchemba said the government had requested AfDB and the French Development Agency (AFD) to consider financing the project to enable the Lake Zone residents to get reliable electricity. He added that the development of Kakono HPP will displace the use of fossil fuels in the north-western of Tanzania, where costly diesel power generators are often brought online to either supplement the grid supply or improve the quality of supply to avoid prolonged blackouts and brownouts.
The minister said the project would be completed in five years and involve the construction of an 87.8 MW hydropower plant and other works, including a primary school, and health centre and improving the living standard of the communities around there. The AfDB Tanzania Country Manager, Dr Patricia Laverley, said they were satisfied with the capacity commitment that the government has demonstrated. Dr Laverley insisted that AfDB would remain a committed partner in achieving the country’s development aspirations. She added that they will work with the government to ensure the successful implementation of the active project in our portfolio.”