By Khalifa Hemed
Published May 31, 2021
The Government of Tanzania and African Development Bank (AfDB) have signed a US$140 Million loan agreement to finance the construction of a hydropower plant.
The funds are expected to be used in constructing the 50-megawatt Malagarasi Hydropower plant in western Tanzania and an evacuation transmission line besides adding 4 250 rural electrification connections and providing reliable renewable energy to households, schools, clinics and small and medium-sized enterprises in the Kigoma Region.
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.
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Emmanuel M Tutuba, Permanent Secretary at the Tanzania Ministry of Finance and Planning who signed the agreement with Nnenna Nwabufo, Director General of the Bank Group’s East Africa Regional Development and Business Delivery Office, 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.”
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.”
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The project is one of six transformative infrastructure projects, with a total value of US$1.12 billion, that the African Development Bank has approved in Tanzania over the last three years.
AfDB’ s total ongoing commitment in Tanzania, about US$2.33 billion in value, covers the key sectors of transport, energy, water supply and sanitation, agriculture, governance and finance.
The agreements cover a US$120 million sovereign loan from AfDB and US$20 million from the Africa Growing Together Fund (AGTF), a facility sponsored by the People’s Bank of China and administered by AfDB.
