Last week, the Tanzanian energy ministry held talks with the Export-Import Bank of China (EximBank) to secure a project financing loan of $132million (ZAR2 billion) to develop the East African country’s first wind power project.
Reuters reported that Tanzania is expanding its energy mix, which currently depends on hydro, natural gas and fuel oil for power generation to include wind.
The energy ministry said in a statement: “The government is now in talks with China’s EximBank to finalise the conditions for this low-interest loan.”
“The project has been delayed because of challenges in getting a concessional loan after EximBank raised its interest rate from 1 [%] to 2 [%] and lowered the loan repayment period to 20 years from 25 years,” the ministry added.
East African renewable wind energy project
The wind project will be developed in the central town of Singida and is estimated to have a generation capacity of 50MW by 2016.
At first the Tanzanian government wanted to commission the farm in 2013 however this was delayed due to a lack of finance.
The project is a joint venture between state-run National Development Corporation (NDC), state power utility Tanesco and a privately owned company, Power Pool East Africa.
(Home page pic credit: evwind)