Power Africa has supported the development of 672.26 megawatts (MW) of electricity generation projects in Tanzania. In addition, various firms have received U.S. Embassy support to move transactions forward. The exhibits below illustrate Power Africa’s financially closed transactions in Tanzania, some of which are already online and generating critical electricity supply for the people of Tanzania.

Power Africa Financially Closed Transaction in Tanzania

Kigoma Solar Power (Solar 5MW)

Financial Close Date: 09/30/2016
Commercial Operations Date: 05/15/2017
Estimated Project Cost: $13M
Overview: This is a 5 MW solar power plant in Kigoma, Tanzania with support from USTDA and OPIC. The facility will deliver power to an isolated grid administered by TANESCO that serves millions of Tanzanians in western Tanzania. Power Africa supported US Company NextGen Solar on this project by providing USAID technical assistance to the Tanzanian Energy and Water Utilities Regulatory Authority (EWURA) on renewable energy feed-in-tariff (REFIT) procurement and by facilitating an agreement by Tanzania’s Rural Energy Agency (REA) to issue a commitment letter to cover the cost of the transmission line.  Construction is complete, but the plant is not yet energized due to a dispute with the offtaker.

Kilombero Hydro & Biomass Plants (Biomass - .86MW)

Financial Close Date: 05/04/2017
Commercial Operations Date: 06/30/2018
Estimated Project Cost: $4 million
Overview: This project entails the expansion of existing rice and maize production at Mngeta Farm in the Kilombero Valley of southern Tanzania primarily through the installation of overhead center-pivot irrigation systems, the purchase of additional field and processing equipment as well as upgrades to a mini-hydro plant and the construction of a new rice-husk gasification unit. Power Africa supported US Company Pacific Sequoia Holdings from Delaware on the project through Overseas Private Investment Corporation financing. The project was complemented by funding from Norfund, a Power Africa partner.

Kinyerezi I (Natural Gas – 150MW)

Financial Close Date: 12/03/2013
Commercial Operations Date: 04/04/2016
Estimated Project Cost: $183M
Overview: The Kinyerezi I project is a 150 MW gas-fired power plant as well as a 220/132kV substation and 220/132kV transmission lines to connect the new power plant to the existing transmission network. In developing this project, USAID advised the Government of Tanzania on the project. Jacobsen Elektro Company (Norway) constructed the plant and transmission network and used turbines manufactured by Power Africa partner General Electric (United States). The power plant was delivered to the Tanzanian utility company, TANESCO, which then took the plant into commercial operation. This project reached financial close in December 2013 and was commissioned in April 2016.

Kinyerezi I Expansion (Natural Gas – 186MW)

Financial Close Date: 02/29/2016
Commercial Operations Date: 12/29/2017
Estimated Project Cost: $185M
Overview: Power Africa advanced the 186 MW Kinyerezi I Expansion transaction to financial close in 2016 through the provision of USAID Transaction Advisory Services as well as support from the Department of Commerce. Turbines used at the plant were manufactured by US Company General Electric.

Kinyerezi II (Natural Gas – 240MW)

Financial Close Date: 02/29/2016
Commercial Operations Date: 12/29/2017
Estimated Project Cost: $240M
Overview: The 240 MW combined cycle gas technology plant (CCGT) is made up of 6 turbines and is part of a four plant complex. The plant uses gas and steam to generate electricity with a potential to produce 167.82 MW from natural gas and 80.4 MW from steam. The plant was inaugurated in a ceremony by President Magufuli in April 2018. Power Africa advisors performed a detailed technical review of the project feasibility study and provided support to State utility TANESCO during procurement.

Luponde Hydro Power and Rural Electrification Project (Hydro – 2.9MW)

Financial Close Date: 04/03/2018
Commercial Operations Date: 4/2019
Estimated Project Cost: $5.9M
Overview: The Luponde Hydropower project developed two adjacent hydro sites, linked together to feed a common point of interconnection with Tanzania's public utility company (TANESCO). Power Africa provided advisory assistance through all stages of development on this project, which is part of the Rural Energy Agency’s (REA) Mini and micro-grid Results Based Financing (RBF) Program. This project received a $840,000 grant application from REA's Mini and micro-grid Results Based Finance program funded by Swedish International Development Agency and the United Kingdom’s Department for International Development. The project will be located in Njombe district in Njombe Region in Southern Highlands Zone. The project will connect nine villages; five villages are in Luponde Ward and four are in Lungilo Ward. It is expected to result in 1,400 direct connections, and reduce GHG emissions by 6,183,409 tonnes per year.

Tulila (Hydro – 7.5MW)

Financial Close Date: 12/15/2014
Commercial Operations Date: 02/29/2016
Estimated Project Cost: $24M
Overview: Tulila is a run-of-river hydroelectric plant with an earth-fill dam and a weir system to divert water to the plant and increase the naturally available head. Power Africa supported the Tanzanian Rural Energy Agency (REA) by helping draft support letters and clearing one of the final hurdles to reaching financial close. Total financing of $28.3 million for this project was provided by AF-Iteco, via a combination of a bank loans, subordinated loans, equity, and a $1.5 million Green Performance Grant, approved by Tanzania’s REA. This project is expected to result in a GHG reduction of 10,661 tons per year. Run-of-river plants provide significantly fewer environmental and social issues when compared to traditional dam projects.  

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