Government of Tanzania reveal a $5 Million Plan for Rural Development

Government of Tanzania reveal a $5 Million Plan for Rural Development

The government of Tanzania, through the country’s Rural Energy Agency (REA), has unveiled the Renewable Energy Project Development Facility (REPDF). A government investment vehicle that will identify eligible development projects across rural areas in Tanzania, and give funding for their establishments.

The REPDF investment vehicle comes with funding to the tune of $5.25 million. These funds were aggregated from various donors including the World Bank and the Swedish International Development Cooperation Agency (Sida).

Speaking during the launch of the REPDF on Thursday, Jan 24, the REA Director of Marketing Development and Technologies, Elineema Mkumbo said this fund is mainly targetting project developers within the renewable energy space. That is developers dealing with power generation from wind, solar, biomass, and small hydro. In addition to having a mini-grid with the capacity to generate less than 10MW.

This support mechanism will also help providers to acquire an efficient consultant service. Because most of the project providers have been unable to prepare well their documents and proposals, they have failed to acquire funding assistance to undertake power projects in the rural areas,” said Elineema Mkumbo.

Mkumbo further revealed that the REPDF will compensate the providers for any payments they made for consultancy services on any pre-investment advisory assignments including the feasibility studies, business plans, and social and environmental assessments.

In support of enhancement of the development of mini-grid electrification projects in Mainland Tanzania, the REPDF will provide 90% of the funds needed and will be paid directly to the consultant, while project developers will contribute only 10%,” said Mkumbo.

Application for funding assistance will be through the agency’s official website, and the project providers will be vetted by experts to establish their eligibility.

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