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Johannesburg - The Development Bank of Southern Africa is lending Tanzania $314m for two power plants, the Treasury said on Thursday, as the east African nation country looks to tap more of its abundant gas reserves.
The state-owned lender has underwritten $227m for the construction of the Kilwa Power plant and another $87m for a 240 megawatt (MW) gas-fired plant at Kinyerezi, the treasury said.
Despite natural gas reserves estimated at more than 41 trillion cubic feet, Tanzania experiences frequent power outages as it is heavily reliant on hydro-power capacity and fuel-run generators.
The country's average power demand stands at 750 MW per day and peaks at around 850 MW.
The state-owned power utility burns fuel worth more than double the amount of money it receives as daily revenue, and is now racing to build infrastructure to tap a gas potential that is seen equal to some Middle East producers.
Last month, the east African country signed a $692.7m contract for the construction of a 400kV transmission line with a Chinese company.
China is also financing a $1.2bn 532km natural gas pipeline from the southeast of the country to the commercial capital Dar es Salaam.
The Development Bank of Southern Africa is also active in Angola, where it is financing around $146m of a $700m facility it is helping to arrange for two Angolan national roads.
The state-owned lender has underwritten $227m for the construction of the Kilwa Power plant and another $87m for a 240 megawatt (MW) gas-fired plant at Kinyerezi, the treasury said.
Despite natural gas reserves estimated at more than 41 trillion cubic feet, Tanzania experiences frequent power outages as it is heavily reliant on hydro-power capacity and fuel-run generators.
The country's average power demand stands at 750 MW per day and peaks at around 850 MW.
The state-owned power utility burns fuel worth more than double the amount of money it receives as daily revenue, and is now racing to build infrastructure to tap a gas potential that is seen equal to some Middle East producers.
Last month, the east African country signed a $692.7m contract for the construction of a 400kV transmission line with a Chinese company.
China is also financing a $1.2bn 532km natural gas pipeline from the southeast of the country to the commercial capital Dar es Salaam.
The Development Bank of Southern Africa is also active in Angola, where it is financing around $146m of a $700m facility it is helping to arrange for two Angolan national roads.
