Tanzania - Kakono Hydropower Project

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. This project primarily contributes to climate mitigation results. As such, 100% of the total approved amount is attributed as climate finance, of which 100% is dedicated to mitigation.