March 31, 2025

OPEC Fund and partners fund new power transmission line in Tanzania

Facebook
Twitter
LinkedIn
OPEC Fund and partners fund new power transmission line in Tanzania
OPEC Fund and partners fund new power transmission line in Tanzania

A new USD 60 million loan by the OPEC Fund for International Development (the OPEC Fund) and partners is expected to significantly strengthen energy security in northwest Tanzania. The project will include the construction of a 166km overhead transmission line connecting the Kagera region to the national grid, replacing the current energy supply from Uganda with local hydropower resources.

OPEC Fund logo

Tanzania has enormous potential in the field of renewable energy. As one of the countries bordering Lake Victoria, which is fed by the Kagera River, Tanzania is investing heavily in the expansion of its hydropower capacity with plants under development at Rusumo and Kakono in its northwestern region. The two new hydropower plants are expected to be operational in 2024 and 2030 with nominal capacity of 80 MW and 87 MW, respectively.

The financing of the project will be shared among several partners: The OPEC Fund with a USD30 million loan, as a first tranche of a USD60 million facility, will be joined by the Abu Dhabi Fund for Development (USD30 million), the Saudi Fund for Development (USD12.8 million) and the government of Tanzania with USD2.6 million. Other backers are set to finance a downstream distribution network that will connect many unserved communities to the grid.

OPEC
OPEC

The construction of the new transmission line will allow Tanzania to reduce its dependence on energy imports. This diversification will enhance energy security and save costs by eliminating the need to pay for imports in foreign currency. Furthermore, the expansion of hydropower generation will allow the country to shut expensive and polluting back-up thermal power plants, leading to a cleaner and cheaper energy sector in Tanzania.

Northwest Tanzania’s Kagera region is one of the country’s poorest with average income less than half the national average, according to the National Bureau of Statistics. With the regional economy dominated by agriculture, improved power supply will allow other sectors to establish themselves in the region and help to fulfil its potential.

The OPEC Fund signed its first engagement in Tanzania in 1977 and to date has approved more than USD400 million for investment in all major sectors of the economy. In particular, recent loans have supported water, road and infrastructure projects.

Source

This image has an empty alt attribute; its file name is Banner_1300-x-600-pix-2-min-1024x473.jpg

Also read:

OPEC Fund partners with Asian Development Bank to support Thailand’s bio-circular-green economy

OPEC Funds collaborates with IRENA

Opec Fund Strengthens partnerships at Abu Dhabi Sustainability Week

Share.

RELATED POSTS

(left)Bader Al-Ali & Faisal (right) Al-Gharabally (Image courtesy: Gulf Bank LinkedIn)
Gulf Bank onboards New Leaders for Consumer Banking and International Banking
Chairman Ashok Hinduja. Image Courtesy IIHL
IndusInd completes RCAP Acquisition of USD1.17 bln in the BFSI sector
Untitled design (1)
OAB Partners with FSA to launch five digital trading platforms
  • Asialink Finance

LATEST POSTS

Representational Image. Image By Freepik
Plant growing in jar of coins. Coins in a glass jar for saving money financial. Investment and saving concept Image used for illustrative purposes. Getty Images
Representational Image. Image By Freepik
Gewan Hotels & Resorts is pleased to announce the promotion of Elias Saad to General Manager of Royal M Hotel Abu Dhabi. (Image Courtesy: Gewan Hotels & Resorts)