OPEC Fund and partners finance new power transmission line in Tanzania

OPEC Fund and partners finance new power transmission line in Tanzania

A new US$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. 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 US$30 million loan, as a first tranche of a US$60 million facility, will be joined by the Abu Dhabi Fund for Development (US$30 million), the Saudi Fund for Development (US$12.8 million) and the government of Tanzania with US$2.6 million. Other backers are set to finance a downstream distribution network that will connect many unserved