The African Development Bank Group (AFDB) has agreed to loan $140 million to the Government of Tanzania to finance the construction of the 50MW Malagarasi hydropower plant in Western Tanzania.
The funds will be used to construct the plant and an evacuation transmission line, as well as to add 4250 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 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.
“The signing of the loan agreements is another testimony of our joint commitment to working together to support Tanzania’s development aspirations.,” commented Nnenna Nwabufo, Director General of the Bank Group’s East Africa Regional Development and Business Delivery Office. “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.”
“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,” added Emmanuel M. Tutuba, Permanent Secretary at the Tanzania Ministry of Finance and Planning. “The government will take all necessary measures to ensure successful implementation of this project as planned.”
The loan is split into a $120 million sovereign loan from the Bank and $20 million from the Africa Growing Together Fund (AGTF), which is administered by the Bank.