AFD signs agreement for Kakono hydropower plant in Tanzania

The Tanzanian government and Agence Française de Développement (AFD) have signed an agreement for the funding of the Kakono hydropower plant and associated infrastructure in the Kagera region of the country.

Tanzania relies on hydropower and thermal power plants for its electricity supply and has considerable untapped renewable energy potential. The Kakono project is expected to add 88 MW of renewable power production capacity to the national grid, and strengthen the capacity of Tanzania Electric Supply Company, the Tanzanian electricity operator. The project will provide electricity to three to four million people, and reduce greenhouse gas emissions by 216,000 tCO2 a year. It will involve the construction of related infrastructure, which includes a new 39-km, 220 kV transmission line and upgradation of the existing Kyaka substation. In addition to AFD’s EUR 110 million loan, African Development Bank and the European Union are expected to pitch in with a loan of USD 161 million and a grant of EUR 36 million respectively.