Dar es Salaam. French Development Agency (AFD) and the European Union (EU) have entered into a formal agreement to jointly finance the construction of the Kakono hydropower plant in Kagera, where the two will jointly contribute EUR146 million, about half of the total cost of EUR296 million of the project.
The partnership was closed during the just-concluded Global Gateway Forum 2023, an EU-organised forum on global investment, which took place in Brussels, Belgium, from October 25 to October 26, 2023.
Leaders from the EU and across the world participated in the invitation-only event.
The Kakono is planned as a run-of-river project on the Kagera River with an installed capacity of 87 MW and an annual energy production of 573 GWh.
The dam is expected to create a gross head of 32 m, resulting in a reservoir size of 18 km2. The power will be evacuated via a 132 kV overhead transmission line to an existing substation in Kyaka village.
Also funded by the African Development Bank (AfDB), the dam is expected to reduce greenhouse gas emissions by 213,810 tons per year, contributing significantly to both economic development and climate change adaptation.
The EU-AFD agreement comes almost ten months after the conclusion of the Tanzania-EU Business Forum in February this year.
READ MORE: Tanzania-EU Business Forum Closes As More Deals Worth Billions Are Signed
During the forum, the first-ever to be organised jointly by the EU and the government of Tanzania, Memorandums of Understanding (MoUs) worth EUR1 billion were signed between EU entities and Tanzania’s institutions.
Kakono was among those several investment deals that were closed during the two-day forum, which attracted more than 700 participants from Tanzania Mainland, Zanzibar, and the EU.
Speaking shortly after signing the agreement with the AFD, EU Commissioner for International Partnerships Jutta Urpilainen said she was pleased with Thursday’s development.
“I am pleased to follow up with today’s signature, with the EU contributing to Tanzania’s efforts to diversify its energy sources and bring green energy into the mixin line with the Global Gateway Investment Package for Africa,” she was quoted as saying.
The EU-Tanzania cooperation focuses on three priority areas: green deals, human capital and employment, and governance.
READ MORE: AfDB, EU, And France Invest $300m in Tanzania’s Hydropower Project
The Global Gateway Forum brought together government representatives from the EU and across the globe, alongside key stakeholders from the private sector, civil society, thought leaders, financial institutions, and international organisations to promote global investment in infrastructure.
During the occasion, a series of strategic investment announcements and agreements with partner countries are being presented, marking a significant leap towards the implementation of the Global Gateway strategy.
These announcements not only underscore the tangible worldwide impact of Global Gateway but also provide a platform for governments and businesses to engage in critical discussions surrounding its priorities.
The Global Gateway Forum highlights a collective commitment to fostering sustainable growth and resilience worldwide through a Team Europe approach.
