Development cost of $821m estimated for 200 MW Ngozi geothermal project in Tanzania

Development cost of $821m estimated for 200 MW Ngozi geothermal project in Tanzania Lake Ngozi, Mbeya, Tanzania (source: flickr/ Sara&Joachim, creative commons)
Alexander Richter 25 Sep 2018

Tanzania is promoting investment opportunities in its oil & gas and energy sector, including the 200 MW Ngozi geothermal project by TANESCO, which has an estimated development cost of $821 million.

News from East Africa report that the Tanzanian government will need investments of up to $14.1 billion to finance projects aimed at pushing its economy on industrial development. This was reported in a report by the Tanzania Investment Centre (TIC).

In order to achieve these ambitious goals, TIC executive director Geoffrey Mwambe has called on investors to invest in the projects in the forms of Public Private Partnerships (PPP) and joint ventures.

In its overview on project briefs in selected investment opportunities, projects are listed covering the different sectors of oil & gas ($8.96 billion) and energy ($2.61 billion).

The investment need identified includes an investment of $821 million for the 200 MW Ngozi geothermal project by Tanzania Electric Supply Company Limited (TANESCO). The project is located in Mbeya region, in the western part of Central Tanzania near the border to Zambia and Malawi.

This project involves the planned development of a 600MW geothermal plant at Ngozi, Mbeya. The project is planned to be worked on in two phases; 200MW for Phase I and 400MW for Phase II and the construction of 220kV T/L of 18km from Ngozi – Mwakibete Mbeya S/S. The overall cost is estimated at $821 million with an ongoing feasibility study. The project is owned by TANESCO, but was previously a privately owned project that received a drilling permit back in 2013, as we reported.

Details about the project can be received via Eng. KAto Kabaka,, +255 222451130

Source: AllAfrica, Tanzania Investment Centre (2018 Project Briefs, pdf)