On 14th March 2023, the Government of Tanzania signed concessional loan agreements with the African Development Bank (AfDB) and the French Development Agency (AFD) to finance the Kakono Hydroelectricity Project.
The proposed 87.8 MW Kakono hydropower plant will be located approximately 90 km west of Bukoba Municipality in the Lake Region in northwestern Tanzania.
The agreements were signed by the Minister of Finance and Planning of Tanzania, Dr Mwigulu Lameck Nchemba, the Country Manager of AfDB in Tanzania Dr Patricia Laverley, and Mrs Celine Robert, Resident Director of AFD.
Dr Nchemba explained that USD 161.47 million dollars equal to TZS 374.9 billion will be provided by AfDB and EUR 110 million euros equal to TZS 272.6 billion will be provided by AFD.
He also clarified that the Government expects to sign an aid agreement with the European Union (EU) for the remaining financing needed for the project valued at EUR 35 million equal to TZS 86.7 billion.
Dr Nchemba stressed that the Lake Region where the plant will be located is a highly productive area for the export of minerals and fish, and is in need of cheap and reliable electricity as opposed to the use of diesel-generated power which is expensive and unreliable.
“The implementation of the project will be completed within five years and will involve the construction of an 87.8 MW power plant and other works including the construction of a primary school and a health centre as well as a 28 kilometre of asphalt road and thus improving the living conditions of the community in the region,” explained Dr Nchema
For her part, Dr Patricia Larveley said that when the project is completed, it will serve 210,000 residents, small and medium industries as well as mineral mines in the northwest of Tanzania which will enjoy low-cost, reliable, and clean energy.
For her part, Mrs Celine Robert stressed that the funding provided by the French Government through AFD will help strengthen access to electricity not only in Tanzania but also in the neighbouring country of Uganda where the number of beneficiaries is estimated to be between 3 to 4 million people.