East African regional development financial institution, TRADE & Development Bank (TDB), has committed a $200 million 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.
Speaking to local media, Tadasse noted that: “Tanzania is one of our main stakeholders, it’s seventh in the list of 37 countries that own shares in TDB, with 6.4% stake.”
#TANZANIA: Trade and Development Bank (TDB) has pledged a 400 million US dollar (about 900bn/-) soft loan to the government for construction of the central SGR and a gas plant in Kilwa, Lindi Region.
The bank has allocated $200M for the SGR and $200M for the gas power plant. pic.twitter.com/EPL9yfkF2y
— Tanzania Updates (@TanzaniaUpdates) July 12, 2018
Dr Kalemani said the Kilwa gas plant is designed to generate 318MW and that it will increase availability of power in the country. Read more: Tanzania receives $455m for transmission infrastructure
He 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 hydropower projects and each will generate 10MW,” said Dr Kalemani.
Media cited Tadesse stating that the bank is implementing various development projects in the country.
He said some of the projects being implemented in the agriculture, financial and banking sectors as well as electricity, infrastructure and industries.
“We have other projects worth 157 million dollars that the bank has already approved. Also other 660 million dollars have been allocated 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.