OPEC Fund for International Development, along with other partners, has announced to fund a 166 km overhead transmission line project in Tanzania, which will connect the Kagera region to the national grid. The loan is expected to strengthen energy security in the northwest side of the country by replacing the current energy supply from Uganda with local hydropower resources. Combined with the development of hydropower plants at Rusumo and Kakono, Tanzania is expected to significantly enhance its power generation capacity and reduce its dependence on energy imports.
As a country bordering on Lake Victoria, Tanzania has great potential in the field of hydropower generation, which it is seeking to realize through the expansion of its hydropower capacity. The development of Rusumo and Kakono hydropower plants is expected to add a nominal capacity of 80 MW and 87 MW, respectively.
The financing of the project will be shared among several partners, with the OPEC Fund providing a US$30 million loan to be part of a US$60 million facility. This initial outlay will be joined by the Abu Dhabi Fund for Development, the Saudi Fund for Development, and the government of Tanzania.
