AfDB agrees $120m financing for Malagarasi Hydropower Project
The African Development Bank has approved a $120 million loan to fund the construction of a 50MW hydropower plant in Western Tanzania. The Malagarasi Hydropower project will provide reliable renewable energy to households, schools, clinics and small and medium-sized enterprises in the Kigoma Region.
The project has several components: a run-of-the-river hydropower plant facility; a 54km, 132kV transmission line that will connect to Tanzania’s national grid; a distribution network expansion operation that includes rural electrification and last-mile connections; project management and contract administration support; and compensation and resettlement of affected persons.
The project’s overall project cost is estimated at $144.14 million. The bulk of the funding ($120 million) will be sourced from the AfDB Group's sovereign window, with an additional $20 million contributed by the Africa Growing Together Fund – a co-financing fund with resources from the government of China that is administered by the AfDB. The Government of Tanzania will provide the remaining $4.14 million.
The hydropower plant’s expected average annual output of 181GWh will meet the electricity needs of as many as 133,649 Kigoma households, bringing the region’s electrification rate more closely in line with the rest of the country.
