The African Development Bank (AfDB) and the government of Tanzania have signed agreements to construct 50-megawatt Malagarasi hydropower plant in the western part of the country.

The bank and the government’s loan agreements, worth $140 million, cover a $120 million sovereign loan from AfDB and $20 million from the Africa Growing Together Fund (AGTF).

Electricity demand in Tanzania is increasing rapidly mainly due to foreign investments and an increasing population.

The funds, according to a statement from the bank, will be used to provide reliable renewable energy to households, schools, clinics and small and medium-sized enterprises in the Kigoma region.

‘I would like to reaffirm the government’s commitment to working closely with the bank in efforts to realise our national and international development aspirations’, Permanent Secretary at the Tanzania Ministry of Finance and Planning, Emmanuel Tutuba, said.

‘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.

‘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’, Director General of the bank group’s East Africa Regional Development and Business Delivery Office, Nnenna Nwabufo, said.

The project is one of six transformative infrastructure projects, with a total value of $1.12 billion, that the AfDB has approved in Tanzania over the last three years.

AfDB’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.

Source: AfDB

Photo source: Mike