TANZANIA - Kakono Hydropower Project


Project Summary

Approval Date 16 Dec 2022
Planned Completion Date 31 Dec 2026
Last Disbursement Planned Date 31 Dec 2026
Sovereign / Non-Sovereign Sovereign
Sector Power
DAC Sector Code 23220
Environmental Category 1
Commitment U.A 121,329,385.95
Status Approved

Project General Description

The proposed 87.8-megawatt (MW) Kakono Hydropower Project (HPP) is one of the energy sectoral interventions under the “economic growth” pillar of FYDP III to realize an inclusive and competitive economy by increasing the generation capacity to improve the availability and reliability of electricity supply. The Kakono HPP, together with the ongoing and planned projects in the north-western part of the country, will contribute to increased renewable energy production, thereby displacing the costly diesel generators while, at the same time, improving TANESCO’s financial health. It will also address the deficits of electricity particularly in Kagera, Geita and Mwanza regions in the Lake Zone. Specifically, the Project will complement the Bank-financed Regional Rusumo Falls hydropower transmission line projects and other related Development Partner (DP) operations in the north-western part of the country, thereby contributing to multi-country infrastructure connectivity to promote cross-border power trade. The Project will entail the construction of a concrete-faced rockfill dam (about 42 m high and 1,380 m long) and a gravity roller-compacted concrete dam (about 61 m high and 284 m long) producing a hydropower potential exploited through an outdoor powerhouse at the toe of the dam. The overall Project cost is estimated at USD 308.85 million, including contingencies but excluding local taxes and levies such as overweight road transportation surcharges, etc.

Project Objectives

The project development objective is “to increase on-grid energy production from least cost renewables to address the electricity deficits in north-western Tanzania.” The development of Kakono HPP will displace the use of fossil fuels in the north-western corner of Tanzania in the Lake Zone where costly diesel power generators are often brought online to either supplement the grid supply or improve the quality of supply to avoid prolonged blackouts and brownouts.

Beneficiaries

The proposed Kakono hydropower plant, approximately 90 km west of Bukoba Municipality in the north-western corner of Tanzania, will be situated downstream of the three sites, namely, Rusumo, Murongo/Kikagati and Nsongezi along the Kagera River. Besides the large electricity consumers who will benefit from the improved supply reliability, the key beneficiaries include the general population in the Lake Zone. Taking into consideration the energy consumption patterns alongside the gender-disaggregated percentage of the population using grid electricity as the main source of lighting as well as the corresponding average monthly consumption patterns, it is expected that the Kakono power plant will provide green energy to nearly 210,000 households (of which 30 percent will be female headed) thereby playing a significant role in increasing the electricity connectivity rate in the Lake Zone. Apart from the electricity consumers, the Project will create employment opportunities. It is expected that about 1,000 temporary job opportunities will be created during the six-year implementation phase in addition to the 100 permanent jobs pertaining to the operational phase.

Participating Organization

Funding
African Development Bank
Implementing
TANZANIA ELECTRIC SUPPLY COMPANY LTD (TANESCO)

Information

IATI identifier 46002-P-TZ-FAB-003
Last Update 26 Jan 2023

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Contact Details

Name MUGUWA Andrew
Email a.muguwa@afdb.org

Geographic Location

Country Tanzania, United Republic of