By Polycarp Machira , The Guardian
THE government and the French Development Agency (AFD) yesterday signed a grant agreement for ...
euro 34.86m (96.47bn/-) for the Kakono hydropower project in Kagera Region.Celine Robert, the AFD country director, said after a brief signing ceremony in the capital that the grant delegated by the European Union (EU) will support the implementation of environmental and social management plans and other works associated with the 87.8MW hydropower plant.
The project is conducted by the Tanzania Electric Supply Co, (TANESCO), already disbursed with a $ 281m loan from AFD and the African Development Bank (AfDB).
She said that Tanzania’s energy mix is currently based mainly on thermal power plants (gas-fired) and hydropower, with considerable untapped renewable energy potential, including hydropower.
It should be mobilized in order to meet the country's growing electricity demand while taking a low-carbon path, she stated, affirming that to support this trajectory, development partners are financing the Kakono project as it increases renewable generation.
It also reduces hydrological risk with a dam located on a new watershed less affected by droughts, the director noted, highlighting that the project involves an upgrade of the Kyaka substation and a new 39 km 220kV transmission line, while providing capacity building support for TANESCO.
This Kakono project is fully in line with international climate objectives and will support Tanzania in its energy transition to reduce the carbon intensity of the power sector, she stated.
It will reduce greenhouse gas emissions by 216,065 tonnes of carbon dioxide per year and comply with the best international environmental and social standards, she said.
It should facilitate answering to the needs of three to four million people, increasing by around seven percent the population’s electricity service coverage level, she further noted.
“Therefore, it is expected to have a major impact on the economic development of this rapidly growing zone, which lies at the heart of the Great Lakes region.” she asserted.
“Upon completion the hydropower facility will boost industrial projects and spur growth not only in Tanzania but also in neighbouring countries, strengthening the leading position of Tanzania at the regional level,” the director affirmed.
The project is a milestone in the government’s pursuit of Vision 2025 for the energy sector, she said, underlining the close collaboration between agencies co-financing this project.
It involved a euro110m soft loan from France (AFD), a euro 34m grant from the European Union and a $161.47m soft loan from the AfDB and is part of the EU global gateway initiative.
Dr Natu El-Maamry Mwamba, the Treasury permanent secretary, said the objective of the project is to increase on-grid energy production using least cost source which is hydro, to address electricity deficits in north western regions.
She said it will replace the use of fossil fuels where costly diesel power generators are often used to supplement grid supply or improve the quality of supply to avoid prolonged blackouts.
She affirmed project completion for 2026 and its commissioning in December 2028 when its supply attains the projected level.
The project is in line with the third five year plan, with the theme of building a competitive and semi-industrial economy for human development, underlining that the energy sector is among top priorities of AFD and the EU.
From the electricity supplied to consumers, the project will create employment opportunities, levelled at upwards of 1,000 temporary jobs during the implementation phase, and 100 permanent jobs when in operation, she added.
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