East African regional development financial institution, TRADE and Development Bank (TDB), has committed a US $200m soft loan to the Tanzanian government for construction of a gas power plant in Kilwa District, Lindi Region.
The bank’s president, Admassu Tadesse, recently met and discussed various issues related to the project with Tanzania’s Finance and Planning Minister, Dr Philip Mpango, as well as Energy Minister Dr Medard Kalemani.
Also read: KenGen to seek US $57m funding to set up solar powered station
The Kilwa gas plant is going to generate 318MW and that it will increase availability of power in the country. The Energy Minister further highlighted that at present the country generates 1,500MW.
“We are still connecting villages to electricity, so far we have 176 villages that need electricity and 120 of them are located in islands, TDB has agreed to support the construction of hydro power projects and each will generate 10MW,” said Dr Kalemani.
Development projects
Mr Tadesse stated that the bank is implementing various development projects in the country. The implementation of some of the projects going on are in the agriculture, financial and banking sectors as well as electricity, infrastructure and industries.
“We have other projects worth US $167m that the bank has already approved. Additionally, another US $660m has been set aside for Tanzania to boost agriculture, trade, infrastructure, energy, chemical and petrol sectors,” he said.
The finance minister further committed to ensure that his office will speed up the negotiations on the soft loan between Tanzania and TDB and successfully concluded within the next three months.
