Kakono power project gets 96.47bn/- boost

DODOMA: TANZANIA and the French Development Agency (AFD) have signed a complementary financing agreement worth 34.86 million Euro (equivalent to 96.47bn/-) for implementation of the Kakono Hydropower project which upon completion will pump into the national grid about 87.8 Megawatts.

The signing ceremony was held at Dodoma’s Treasury Square between the Permanent Secretary in the Ministry of Finance, Dr Natu Mwamba and AFD Country Director, Ms Celine Robert and witnessed by Deputy Permanent Secretary in the Ministry of Energy, Dr James Mataragio.

The proposed Kakono Hydropower Project which is located approximately 90 kilometres West of Bukoba Municipality in the Northwest corner of Tanzania, along the Kagera River will be implemented by the Ministry of Energy via the State-owned power utility firm, Tanzania Electric Supply Company Limited (TANESCO).

At the signing ceremony yesterday, the AFD Country Director said that the Grant agreement was delegated by the European Union (EU).

“This financing will support implementation of the Environmental and Social Management Plan as well as the infrastructures associated with the 87.8 MW Kakono Hydropower Plant located in Kagera Region, in the northern part of Tanzania,’’ she said.

According to Ms Robert, TANESCO had already benefited from a 281 million US dollar loan from both the French Development Agency and the African Development Bank (AfDB).

Speaking immediately after sealing the deal, the Permanent Secretary in the Ministry of Finance said that the objective of the project was to increase ongrid energy production using least cost source which is hydro, to address the electricity deficits in northwestern Tanzania.

“The development of Kakono Hydro Power Plant (HPP) will replace the use of fossil fuels in North western corner of Tanzania in the Lake Zone, where costly diesel power generators are often used to either supplement the grid supply or improve the quality of supply to avoid prolonged blackouts,’’ she said.

Dr Mwamba further noted: “I am glad to remind that this project is co-financed by three Development Partners who are AFD (Euro 110 million equivalent to about 304.37bn/-), African Development Bank (USD 161.47 million equivalent to about 413.95bn/-) and European Union (Euro 34.86 million, equivalent to 96.47bn/- to be supervised by AFD).

The Kakono Hydropower Project is in line with the Third Five-Year Development Plan (FYDP III) with the theme ‘Building a Competitive and Industrial Economy for Human Development through improving productive infrastructures, reliable access to energy, strengthening the business and investment enabling environment as well as education and training systems.’

“I am grateful that the energy sector is among the top priorities of AFD and the European Union. The project is also well aligned with the current AfDB’s Country Strategy Paper (2021-2025) for Tanzania and operational priorities (commonly known as High Fives), which are five and the power sector being the number one,’’ added Dr Mwamba.

The PS further clarified that apart from the electricity supply to consumers, the project will create employment opportunities.

“It is expected that about 1,000 temporary jobs will be created during the implementation phase in addition to 100 permanent jobs during the operation phase and this will boost the economy of the local people at project area to improve their lives.’’

Dr Mwamba re-affirmed the government’s commitment to continue working closely with AFD and other Development Partners to strengthen development cooperation for development of the people.

“With strong relationships, we shall be able to achieve our national and international development aspirations. Further, be reassured that the government will take all necessary measures to ensure successful implementation of this project and achievement of its intended development objective,” he said.

Speaking at the event, the Deputy Permanent Secretary in the Ministry of Energy said that preparations for compensating residents surrounding the project were on top gear and that procedures to obtain the consultant of the project were equally ongoing.

“We in the ministry appreciate the technical and financial support that we have been continuously receiving from AFD,’’ said Dr Mataragio.