On Sep. 20, the Delegation of the European Union in Tanzania, the Ministry of Finance and Economic Affairs (National Authorising Officer of the European Development Fund) and the Rural Energy Agency approved five Grant Contracts, amounting to EUR 7,200,000 (app. 16 billions Tshs.). The grants will be utilized to provide modern energy services in rural areas. The fund will be made available from the 10th European Development Fund allocation (2008-2013).
The five projects aim at providing modern energy services to many rural areas of the country, including Iringa, Morogoro, Tanga, Kagera, Mwanza, and Mara. Electricity will be generated through renewable energy resources, like hydro, solar and biogas. The projects will not only have a positive effect on the lives of the people and the economy of the area, but also will prove to be beneficial for the environment, because all these modern methods of producing electricity will also help in reducing deforestation.
According to an estimate, the projects will benefit 160,000 people. In the next four years, many positive results are expected. Some of these results include the construction of a new hydropower plant in Msolwa , with a total capacity of 1 MW, with the installation of an initial 200 connections (households, social services and SMEs), and the upgrading of the existing Mawengi hydropower plant to a total capacity of 300 kW , with the installation of 800 additional connections (households, social services and SMEs).
In addition to these results, the existing Ikondo hydropower plant will be upgraded, to a total capacity of 320 kW and the installation of 130 additional connections (households, social services and SMEs). 15,000 individual Solar Household Systems will be installed with the help of a new technique of “clusters,” which will target farmers and workers associations in the Lake Region. The projects will also help in the distribution and installation of 10,000 household biogas systems, which would make use of a new, affordable and locally produced plastic technology.
“At a time of increasing concern about providing long-term, guaranteed, energy resources, I am very happy to announce these five renewable energy projects today. The potential for further investments of this sort is huge. They are particularly suitable for isolated rural communities that could never normally have access to main electricity. A ‘renewable energy reflex’ should be promoted throughout Tanzania,” said Tim Clarke, Ambassador and Head of European Union Delegation in Tanzania.
According to says, Dr. Lutengano Mwakahesya, the Director General of the Rural Energy Agency (REA), “This event materialises as a result of strong but still growing partnership that the European Union Delegation in Tanzania and Ministry of Energy and Minerals and the Rural Energy Agency. REA has experience in working with project developers’ implementing these projects…and all have received funds from Rural Energy Fund to finance other projects or part of the projects they have worn under 10th EDF program. We are confident that the same will be seen in the course of implementation of these projects”.
Sadick Magwaya from the National Authorising Office (NAO) under the Ministry of Finance, said, “Effective and efficient utilization of the projects resources provided by the EU requires continued strong cooperation between project implementing partners, REA, EU Delegation, Ministry of Finance and other stakeholders. The Office of NAO, as a Contracting Authority, will provide all necessary inputs to ensure successful implementation of the projects”
