(3 minutes read)
The French Development Agency (AFD) and the European Union (EU) have agreed to jointly finance the construction of the Kakono hydropower plant in Tanzania. The two multilateral institutions will jointly contribute EUR146 million, about half of the total cost of EUR296 million of the project.
The French Development Agency (AFD) and the European Union (EU) have agreed to jointly finance the construction of the Kakono hydropower plant in Tanzania. The two multilateral institutions will jointly contribute EUR146 million, about half of the total cost of EUR296 million of the project. The EU-Tanzania cooperation focuses on three priority areas: green deals, human capital and employment, and governance. This partnership was materialised at the recently concluded Global Gateway Forum 2023, an EU-organised forum on global investment, which took place in Brussels, Belgium. Leaders from the EU and across the world participated in the invitation-only event.
The Kakono is planned as a run-of-river project on the Kagera River with an installed capacity of 87 MW and an annual energy production of 573 GWh. The dam is expected to create a gross head of 32 m, resulting in a reservoir size of 18 km2. The power will be evacuated via a 132 kV overhead transmission line to an existing substation in Kyaka village.
Also funded by the African Development Bank (AfDB), the dam is expected to reduce greenhouse gas emissions by 213,810 tons per year, contributing significantly to both economic development and climate change adaptation.
The EU-AFD agreement comes almost ten months after the conclusion of the Tanzania-EU Business Forum in February this year. During the forum, the first-ever to be organised jointly by the EU and the government of Tanzania, Memorandums of Understanding (MoUs) worth EUR1 billion were signed between EU entities and Tanzania’s institutions.
Kakono was among those several investment deals that were closed during the two-day forum, which attracted more than 700 participants from Tanzania Mainland, Zanzibar, and the EU.
Read Also:
https://trendsnafrica.com/afd-afdb-eu-hydropower-plant-in-tanzania/
https://trendsnafrica.com/afdb-lends-162-million-us-for-kakono-power-project-in-tanzania/
https://trendsnafrica.com/tanzania-rations-power-faced-with-severe-drought/
The Global Gateway Forum brought together government representatives from the EU and across the globe, alongside key stakeholders from the private sector, civil society, thought leaders, financial institutions, and international organisations to promote global investment in infrastructure.
