Boost for grid extension
- Samia woos investors to establish more industries
PRESIDENT Samia Suluhu Hassan and her Ugandan counterpart Yoweri Museveni on Thursday commissioned the Kikagati-Murongo Hydropower Plant, a 16MW project that will boost the power grids of both countries.
Situated at the border of the two countries, the project required an investment of 87 million US dollars to implement.
It was executed with funding from the Netherlands Development Finance Corporation (FMO), Africa Renewable Energy Fund, Emerging Africa Infrastructure Fund (EAIF) and Private Infrastructure Development Group (PIDG) and the construction commenced in February 2018. The project adds up to 115 GWh of electricity per year to the power grids of both countries.
The project has also received support from the Africa Renewable Energy Fund (AREF) amounting to 205 million US dollars fund managed by Berkeley Energy. All the loans will be repaid over 16 years, starting from the commissioning date.
Kikagati Power Company (KPC) sells its output to Uganda Electricity Transmission Company Limited (UETCL) being the country’s state-owned company, which is responsible for electricity distribution and sells part of this energy to Tanzania Electric Supply Company (TANESCO).
Commissioning the plant at Isingiro District in Mbarara, Uganda, President Samia said Tanzania and Uganda’s historical and fraternal relations continue to improve day by day.
She said power generated is going to improve a number of aspects in the region, including business, communication and social engagements.
The Head of State also assured Tanzanians that all regions will be linked to the national grid and appealed to investors to establish more industries because there was a reliable power supply.
Adding: “Tanzania is an attractive country for large investments and the nation boasts of reliable electricity following the near completion of several projects including the Mwalimu Julius Nyerere Hydropower Project (JNHPP) that will generate about 2,115 MW.”
Equally, she emphasised on the need to enhance regional cooperation through implementation of sustainable development projects for socio-economic development of their countries.
Elaborating, President Samia hailed President Museveni for the invitation to launch the project together saying: “We express our sincere appreciation. You could have done it alone with your people. I am proud of your vision… congratulations. Also I congratulate the contractor and all those who have made this project possible.
“The project will cement our relationship on trade, investment and social engagement. Electricity will improve security in general; reduce inequality between urban and rural settings and foster micro-economic development.”
President Samia made assurance that Tanzania remains committed to cement the friendship and ensure that the Musongozi Power Project is implemented. She appealed to President Museveni to allow teams from both parties to discuss and come out with recommendations on how to implement the project.
“Shortage of electricity in these countries and indeed the entire Nile Basin region has resulted into an underdeveloped manufacturing sector, hence limited options for business development necessary for income, reduce dependency on toxic fuel and limited opportunities for modernising and improving the quality of key infrastructure including health care, water supply and other social services,” she said.
In response, President Museveni hailed Dr Samia for the historic visit, saying that this was the first time the Tanzania President visited the part of the country.
Amid applause, he hailed Tanzania for aiding Uganda to win the 1978/79 War against Idi Amin, saying: “This is where I was born 40 miles from here. I grew up here, herded cows and fought three wars here.
“I am glad to receive you here. We are beginning to utilise the potential of River “Kagyera” but Kagera residents call it Kagera.”
The Kikagati Hydroelectric Power Project is a low-head, run-of-river 16 MW Hydroelectric Project on River Kagera. Its dam is located on the Kagera River, the largest tributary of Lake Victoria, which serves as the natural border between Tanzania and Uganda.
The dam is 8.5m high and 300m long, forming a reservoir on 4 km2 on Tanzanian territory and the electricity produced by the hydroelectric plant is evacuated via a 33kV line.
Electricity power is a catapult which Tanzanians should utilise by establishing medium and large industries. The government is determined to ensure that by 2025 all villages in the country are connected with electricity.
Without an efficient industrial base, the country’s economy can hardly develop and create job opportunities. Industries have great potential of creating jobs and attracting capital, skills and knowledge…industrialisation is the way to prosperity…national development cannot be imported, it must come from within.
Electricity is one of the essential resources that have fostered development, in various sectors, including industry, business, health and education. Industries that produce goods for mass consumption such as clothes, textiles and edibles are highly encouraged.
The government has embraced industrialisation as part of the panacea for unemployment among the youths because industrialisation drive was expected to be one of the significant remedies by creating thousands of job opportunities across the country.
