AfDB approves $123.39m loan for Tanzania’s power transmission line project

24 July 2018 (Last Updated July 24th, 2018 10:53)

The African Development Bank (AfDB) has approved a $123.39m loan that will partially finance the North-West Grid 400kV Nyakanaz-Kigoma power transmission line project in Tanzania.

The African Development Bank (AfDB) has approved a $123.39m loan that will partially finance the North-West Grid 400kV Nyakanaz-Kigoma power transmission line project in Tanzania.

Slated for completion in 2024, the project will see the construction of a 280km transmission line from Nyakanazi to Kigoma, as well as an extension of Nyakanazi substation and construction of a new substation at Kigoma.

Additionally, the project scope includes integration of Kigoma and Kasulu 33kV distribution networks with the main grid including the supply of last-mile connection materials to serve at-least 10,000 new consumers in Kigoma Region.

"As well as creating jobs and reducing greenhouse gas emissions in northwestern Tanzania, the project is expected to power 483,000 households in the region by 2024."

In addition to AfDB loan, the project is being financed by two other sources including the South Korea Economic Development Co-operation Fund (EDCF) and the Government of Tanzania.

By providing 66% of funding to the project, AfDB is the major contributor, followed by South Korea’s EDCF with 24% and the Tanzanian Government. The latter has agreed to provide 10% of the overall cost of the project, estimated at $186.12m.

The project aims to improve supply, reliability and affordability of electricity in the Kigoma Region in North-western Tanzania by providing main grid access for the socio-economic transformation of the region in line with Tanzania Vision 2025.

In addition to increasing electricity access from 16.2% to 20%, the project is expected to lower energy production costs by decommissioning expensive diesel-powered plants in Kigoma and Kasulu urban centres including surrounding areas.

As well as creating jobs and reducing greenhouse gas emissions in northwestern Tanzania, the project is expected to power 483,000 households in the region by 2024.

The North-West Grid transmission line project is said to be in line with AfDB’s ten-year strategy as well as its Light-up & Power Africa and New Deal on Energy for Africa.