TANZANIA has signed a loan agreement with the French Development Agency (AFD) for the construction of a 150 MWp Kishapu solar power plant in Kishapu, a district in the Shinyanga Region.
The $166 million loan agreement was signed in Dodoma by Emmanuel Tutub, the Permanent Secretary of the Tanzanian Ministry of Finance and Planning, and Stéphanie Mouen Essombe, the Director of the AFD in Tanzania.
The project will be implemented in two phases. The first phase will be launched in March next year and it will take about 12 months to be completed upon which it will generate at least 50 MW of electricity.
Part of the funds will be used to rehabilitate and modernise the national grid, which is operated by Tanzania Electric Supply Company (Tanesco), in a bid to facilitate the integration of renewable energies and to reduce electricity losses.
The government of France through AFD financed the feasibility study of the grid project through a grant and an additional $ 848,960 has been committed for assisting in the technical assistance of the project.
According to Tutub, upon completion, the project will increase the security of power supply, and enable Tanesco to fulfil its target of diversifying energy generation resources with a renewable power generation mix.
The project will reduce dependence on hydropower during daylight hours and allow conservation of generation capacity and allow spare capacity to be used during peak demand periods and extensive dry season.
For the Shinyanga region, in particular, the project will enhance the ability to supply to the adjacent gold mines as well as stabilise the grid to strengthen power supply capacity and stimulate the economic and social development.