African Development Bank to co-fund $25 m for Tanzania development
Tanzania will see the drilling of its first geothermal well in early 2013 by developer Geothermal Power (Tanzania), likely to be funded in parts by the African Development Bank.
In reports on the African Rift Geothermal Conference, Reuters reported yesterday, on the potential and development drive in Tanzania.
The country – so the report – expects to drill its first geothermal well next year.
The African Development Bank is willing to “co-fund about $50 million in the form of a grant and loan to Tanzania”, in tandem with other development agencies.
Half of the amount is expected to go towards the drilling of steam wells in Mbeya, in the south of the country. The other half will go towards other renewable projects. The bank expects the money to be made available in February 2013. This might allow drilling to start in the first half of 2013 in Tanzania.
The country has a potential of about 650 MW. Development is expected to happen in stages.
The current power generation capacity in the country is about 800 MW that barely meets the increasing power demand in Tanzania.