The African Development Bank Group (AfDB) has signed a loan agreement with the Government of Tanzania to finance the construction of the 50-megawatt Malagarasi hydropower plant in Western Tanzania.
The loan agreements totalling $140 million cover a $120 million sovereign loan from the Bank and $20 million from the Africa Growing Together Fund (AGTF), administered by the Bank.
The Africa Growing Together Fund is a facility sponsored by the People’s Bank of China and administered by the African Development Bank.
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.
The project is one of six transformative infrastructure projects, amounting to $1.12 billion, that the AfDB has approved in Tanzania over the last three years.
The Bank Group’s total ongoing commitment in Tanzania, stands at about $2.33 billion in value, covers the key sectors of transport, energy, water supply and sanitation, agriculture, governance and finance, according to 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.
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.
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.”
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.