Samaia Suluhu joined her Ugandan counterpart Yoweri Museveni at an event that was held in Isingiro District in Uganda to launch Kikagati Hydroelectric Power Project. This project is intended to add 115GWh annually to the electricity grids of both Tanzania and Uganda.
During the launching of the Kikagati Hydroelectric Power Project, President Samia Suluhu gave an assurance to Tanzanians that her government was in the last stages of linking more areas in the country to the national grid and also made an appeal to the potential investors to set up industries in the country. Tanzania now boasts a reliable electricity production following the near culmination of quite a number of projects including the Julius Nyerere Hydropower Project which is expected to generate approximately 2,115MW.
This Kikagati Hydroelectric Power Project is set to cement the relationships of the both countries in terms of trade, investments, and even their social engagement. The electricity generated shall make an improvement to their security, reduce the rural-urban gap settings, and also foster minor economic developments in the country. In addition President Samia gave an assurance that her government will be in support for the implementation of Musongozi Power Project.
“The shortage of electricity experienced in the Nile Basin region has led to underdevelopment in the manufacturing sector thereby limiting available options for business development that is necessary for generation of income, reducing the dependence on fuel that is toxic and limiting the opportunities for modernization and improving key infrastructure that include healthcare facilities, water supply, and some social services.” she stated.
Furthermore, the duo also commissioned the Kikagati Power Company (KPC) that sells its electricity through the Uganda Electricity Transmission Company Limited (UETCL). UETCL also sells a portion of this energy to Tanzania Electricity Supply Company (TANESCO).
Kikagati Hydroelectric Power Project Cost
The total cost of implementation Kikagati-Murongo Hydroelectric Power Project was $87 million. These funds were borrowed as loans by KPC from Netherlands Development Finance Company (FMO) and Emerging Africa Infrastructure Fund (EAIF) of the Private Infrastructure Development Group (PIDG) which is a multi-donor organization with a membership of 7 European countries and also the World Bank Group. Also, an additional $205 million fund managed by Berkely Energy was awarded to the project by Africa Renewable Energy Fund (AREF).
Kikagati Hydroelectric Power Project is located on River Kagera which is the largest tributary of Lake Victoria and serves as the border of Tanzania and Uganda. The dam constitutes a height of 8.5 meters and a length of 300 meters. The electricity generated by the hydropower plant will be transmitted through a 33kV line. Generally, Kikagati Hydroelectric Power Project is both a run-of-river 16MW Hydroelectric Project and also a low-head one that is based on the Kagera River.