The African Development Bank Group (AfDB) and the Government of Tanzania have signed loan agreements totalling $140 million to fund the construction of the 50-megawatt Malagarasi hydropower plant in Western Tanzania.
The agreements cover a $120 million sovereign loan and another $20 million from the Africa Growing Together Fund (AGTF), administered by the Bank.
The funds will cover power generation and an evacuation transmission line thereby adding 4,250 rural electrification connections.
The project aims at providing reliable renewable energy to houses, hospitals, schools, and small and medium-scale enterprises in the Kigoma Region.
Tanzania’s permanent secretary in the Ministry of Finance and Planning, Emmanuel Tutuba and the director general of the Bank Group’s East Africa Regional Development and Business Delivery Office,Nnenna Nwabufo signed the agreements.
“I would like to re-affirm the government’s commitment to working closely with the Bank in efforts to realise our national and international development aspirations. The government will take all necessary measures to ensure successful implementation of this project as planned” said Tutuba.
Noting that Tanzania was a proud founding shareholder that regards the Bank as a “development partner of choice,” and that its cordial relationship with AfDB goes way back to 1964.
As one of Tanzania’s priorities under its Second Five-Year Development Plan, the hydropower project will boost the objectives of the country’s Vision 2025.
It equally aligns with two of the Bank’s High Five strategic priorities– Light up and Power Africa and Improve the quality of life for the people of Africa.
Nwabufo added that the signing of the loan agreements is another testimony of its joint commitment to working together to support Tanzania’s development.
AfDB’s total ongoing commitment in Tanzania is about $2.33 billion in value and covers the key sectors of agriculture, water supply and sanitation, transportation,energy, governance and finance.
The Africa Growing Together Fund facility sponsored by the People’s Bank of China is administered by the African Development Bank.