The 87.8 MW project, whose total cost exceeds Sh700 billion, is also funded by the European Union (EU) and the French Development Agency or Agence française de développement (AFD).
The government signed an agreement with AFD on part of the deal, totaling 110 million euros, just a week before the new development yesterday, according to Finance and Planning Minister Mwigulu Nchemba, who spoke during the signing ceremony (about Sh272.6 billion). ).
The 35 million euro (Sh86.7 billion) grant from the EU, which will be managed by AFD, is the final amount of the total project cost that has yet to be agreed.
“After this important milestone, I ask that the grant arrangements between AFD and the EU be accelerated so that the full package of funding is ready for the project,” Dr. Nchemba, stated.
He emphasized that increasing energy production in the grid from the most cost-effective renewable sources is the overall development objective of the Kakono Hydropower Project to address the electricity deficit in north-western Tanzania.
In the northwestern corner of Tanzania, in the Lake Zone, where expensive diesel generators are often turned on to increase grid supply or improve the quality of supply to avoid continuous blackouts and brownouts, the development of the project will replace the use of fossils. fuel.
Dr Nchemba predicted the project would be completed in five years. This will require the construction of an 87.8 MW hydroelectric power plant as well as a primary school, health center, and a 28 km asphalt access road that is part of the Project. He went on to say that this would ultimately improve the living standards of the local community.
He went on to say that the project also requires evacuation facilities and the implementation of environmental and social management and monitoring plans. The country’s Third Five-Year Development Plan (FYDP III) and the Government’s Sixth Phase comprehensive plan are supported by the Kakono Hydropower Project.
Dr. Nchemba also added that the aim is to create a competitive economy and industry for human development by strengthening the business and investment environment, productive infrastructure, reliable energy access, and education and training systems.