AfDB provides $140m loan for Tanzania hydropower project

27th May 2021 By: Tasneem Bulbulia - Creamer Media Reporter

Finance institution the African Development Bank Group and the government of Tanzania have signed loan agreements totalling $140-million to finance the construction of the 50 MW Malagarasi hydropower plant in Western Tanzania.

The agreements cover a $120-million sovereign loan from the bank and $20-million from the Africa Growing Together Fund (AGTF), which is administered by the bank.

The funds will be used to build 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 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 AfDB’s High Five strategic priorities, namely, Light up and Power Africa and Improve the quality of life for the people of Africa.

The project is one of six transformative infrastructure projects, with a total value of $1.12-billion, that the AfDB has approved in Tanzania over the last three years.

The Africa Growing Together Fund is a facility sponsored by the People’s Bank of China and administered by the AfDB.