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East Africa: Burundi, Tanzania And Rwanda in 80 Megawatt Project
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The East African (Nairobi)
3 March 2008
Posted to the web 3 March 2008
Wilfred Edwin
Nairobi
Burundi, Tanzania and Rwanda are to benefit from an 80 Megawatt hydroelectric power project to be built with the help of the Nile Equatorial Lake Subsidiary Action Programme.
Tanzania's Commissioner for Energy and Petroleum Bashir Mrindoko, said the project, which is designed to produce between 60MW and 80MW, is expected to start early next year with the construction of the Tsh200 billion ($190 million) Rusumo hydropower project on the Kagera river.
The project will be completed by 2011.
"Although the project will contribute just 80MW to be shared by the three countries, it will impact positively on the Kigoma region, which for years has been using diesel propelled generators for electricity," he added.
The project is being implemented by Nile Equatorial Lake Subsidiary Action Programme, an investment programme of the Nile Basin Initiative.
Minister for Energy and Minerals William Ngeleja said the three countries are preparing the first major Kagera Basin infrastructure project for generating hydroelectric power at the Rusumo Falls site.
The project also provides for important interconnections among the three countries, contributing towards the medium and long-term goals of interconnecting with the East African Community and the Southern African Power Pool (SAPP).
Tanzania is yet to become an active member of the SAPP as it is not hooked up to the latter's grid.
Lack of electricity has been a key constraint hampering development in the Kagera region. Most urban and rural households rely on biomass for their cooking and heating needs, leading to deforestation and soil erosion.
Current electricity demand far exceeds supply and load-shedding is endemic, forcing businesses to invest in expensive generators to deal with frequent blackouts that disrupt economic activities.
The three countries have jointly requested the IDA to support the preparation phase of the project and to mobilise grants and other financing for the implementation of the project.
In 2006, the three countries signed a Joint Project Development Agreement that commits them to a series of milestones, including a target date for financial closure, procedural terms for project management, adopting a development schedule and budget, and exploring all financing options including private sector participation in the project.
The project, along with other development initiatives, supports the broader Kagera Basin development goal, which is to improve livelihoods in the region through sustainable development.
A project analysis shows that outcomes at the regional level include an increase in economic activity, private sector development, and investments in social infrastructure and services facilitated by improved access to affordable electricity.
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Outcomes at the project area level focus on economic development in growth centres along the regional transmission lines by improving access to electricity for micro, small and medium enterprises and environmental and social services.
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