Jul 28, 2021

Mawazo Writing Africa

Writing about the main

AfDB grants Tanzania $140m loan for hydropower project

Tanzania signed loan agreements with the African Development Bank Group (AfDB) on Friday totaling USD 140 million to finance power generation and the electricity connection.

The contracts cover a state of USD 120 million from the bank loan and USD 20 million from the Africa Growing Together Fund (AGTF) ​​administered by the bank Construction of the 50-megawatt Malagarasi hydropower plant in the west of Tanzania uses an evacuation line and 4,250 rural electrification connections.

The project aims to provide households, schools, clinics and small and medium-sized businesses with reliable renewable energy Providing energy in the Kigoma region.

Emmanuel Tutuba, Tanzanian Permanent Secretary in the Ministry of Finance and Planning, and Nnenna Nwabufo, Director General of the Regi Onal Development and Business Deliv of the Bank Group in East Africa Each office has signed the agreements.

“I would like to reaffirm the government’s commitment to work closely with the bank to support our national and international development efforts to realize. The government will take all necessary measures to ensure the successful implementation of this project as planned, “said Tutuba.

He praised Tanzania’s warm relationship with the AfDB, which dates back to 1964. He noted that the country is a proud founding shareholder who regards the bank as the “development partner of choice”.

The hydropower project is one of Tanzania’s priorities in its second five-year development Plan the goals of Vision 2025 for the country and you will drive them forward.

It also aligns with two of the bank’s five key strategic priorities: Light up and Power Africa and improving the quality of life for people in Africa.

“The signing of the loan agreements is further testimony to our common commitment to work together to support Tanzania’s development efforts. Malagarasi hydropower is one of the flagship projects in Tanzania’s second five-year plan. We appreciate the trust that the government has placed in the African Development Bank and we are determined to remain a privileged and trustworthy partner of choice, ”said Nwabufo.

The project is one of six transformative projects Infrastructure projects with a total value of 1.12 billion US dollars that the AfDB has approved in Tanzania over the past three years.

The entire ongoing commitment of the banking group in Tanzania amounts to approximately US $ 2.33 billion covers the key sectors of transportation, energy, water and sanitation, agriculture, governance and finance.

The Africa Growing Together Fund is an institution which is sponsored by the People’s Bank of China and administered by the African Development Bank.