Tanzania to seek US$132mn loan for wind farm project from the China

Home » Uncategorized » Tanzania to seek US$132mn loan for wind farm project from the China

Tanzania government is seeking US$ 132million loan fund from the Export Import of china (Eximbank) in order to fund their wind farm project. The power project is expected to have a capacity of 50MW within a year, with the plans to raise this to 300MW in future.

The country, which depends so much on hydro-electricity power, natural gas and fuel oil for electricity generation is looking to additional sources of energy to already existing ones.

According to the Tanzania minister for energy and minerals, the government is already finalizing talks with the China’s Eximbank on low-interest conditions in relation to the wind farm project.

He added that the process has been slow since getting a concessional loan after the bank raised its interest rate from 1-2 percent and lowering the loan payment period to 20 years from 25 years.

The wind farm project is expected to be developed in central town of Singida, which is to generate capacity of 50MW by 2016 Phase I and 150MW after second Phase. 

The project was first commissioned to begin in the year 2013 but this was not to pass since the country did not have adequate finances.

The wind farm project is a joint venture between the state-run National Development Corporation state owned utility Tanesco and privately held power pool East Africa limited.