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AfDB, France, and EU grant $300 million for Tanzania hydropower plant

  • 1 year, 30 days ago (2023-04-18)
  • David Flin
Africa 303 Hydropower 112

The African Development Bank (AfDB), the French Development Agency (AFD), and the EU have agreed to provide $300 million to the government of Tanzania to build the 87.8 MW Kakono hydropower plant.

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The AfDB and the AFD have agreed to provide loans of $161 million and $121 respectively, and the EU has made a grant of $40 million.

Kakono will be a 87.8 MW run-of-river hydropower project being developed by Tanzania Electric Supply Company ( TANESCO ) and is scheduled to be operational by the end of 2026.

Patricia Laverley, Tanzania manager for the African Development Bank, said: “The construction of the new power plant will help to improve TANESCO’s financial sustainability, arising from the decommissioning of the diesel-based power plants in the Kagera region. The economic benefits derived from the supply of affordable power will be immense. We can expect to see marked improvement in the quality of life for people in the Kagera region and in Tanzania more broadly.”