Browsing: AFDB funds for LNG

• Tanzania signs 161.47 million US dollars to implement Kakono HPP in Lake Zone
• European Union (EU) to chip in additional 35 million Euro for Kakono HPP 
• Kakono HPP will take five years to complete, feature a primary school, health centre

The government of Tanzania has secured funding for the Kakono Hydropower Project (Kakono HPP). The project is in line with the country’s Third Five-Year Development Plan (FYDP III) and aligns with President Samia Suluhu’s plan to foster a competitive industrial economy.

The Lake Zone, in the north-western part of Tanzania, is one of the country’s highest fossil fuel consuming region due to the low coverage by the national electricity grid. The region uses diesel generators making the region expensive for investors and residents.   

Funding a US$325 million power project in E. Africa

Also Read: French Development Agency provides $30 million for African SMEs

With assistance from the African Development Bank …

• Africa produces more fertilizer than it consumes yet it imports to meet demand gaps
• Poor inter-country trade facilities affect fertilizer supply chain within the continent
• Developed countries use up to seven times more fertilizer per hectare than Africa

Recent reports show that fertiliser prices have tripled since early 2020 and remain volatile, putting a previous stable supply of fertiliser out of reach of many small farmers impacting food security across the continent.

The reason for this decline in access to fertilizers and hence the increase in global prices has been two fold; first the Covid-19 pandemic disrupted supply chains then the Russia-Ukraine war exacerbated the shortage.

There are other reasons like restricted supply caused by increased export taxes and even complete export bans by various countries. However, these policy restrictions, which in most cases are meant to protect the farmers of the exporting countries, all came into play owing to …

• Tanzania’s Energy Minister Hon. January Makamba invites participants to TEC
• Patrons to review opportunities in Tanzania’s $30bn LNG investment
• Despite huge natural gas deposits, majority of Tanzania relies on firewood, charcoal

With an abundance of a diverse collection of natural energy resources, Tanzania is now poised to make the most of this enormous wealth that largely remains untapped. To this end, Tanzania is this August hosting its fourth edition of the Tanzania Energy Congress (TEC).

The highly anticipated executive summit will be hosted in the country’s commercial port city of Dar es Salaam 3 – 4 August 2022. Two day conference is held under the auspicious leadership of the Minister for Energy of the United Republic of Tanzania, Hon. January Makamba and will highlight the Ministry of Energy’s plans and priorities for both the energy and hydrocarbons sector in Tanzania.

The conference is thus, the opportune opportunity for investors to …

“The change of tone ushered in by President Samia Suluhu Hassan over the last month could indicate a welcome to a whole new economic direction in Tanzania’,” remarked Peter Leon, Partner and Africa Co-Chair, Herbert Smith Freehills

Investors have been wary of dipping their feet in Tanzania’s investment pool, more so investors in the extractive industries. In March 2017, a total ban on the export of unprocessed mineral concentrates and ores was instated.

Just four months later, in July 2017, after six days of deliberation, three new laws assented. The new laws gave significant power to the government, empowering it to control the extractives sector autonomously.

The three laws that were altered are:

• The Natural Wealth and Resources Contracts (Review and Renegotiation of Unconscionable Terms) Act, 2017 (Unconscionable Terms Act);
• The Natural Wealth and Resources (Permanent Sovereignty) Act, 2017 (Permanent Sovereignty Act); and
• The Written Laws(Miscellaneous Amendments) Act, 2017 which

The African Development Bank signed a senior loan of $400 million to co-finance the construction of Mozambique’s integrated Liquefied Natural Gas (LNG).

The Mozambique LNG Area 1 Project is ranked Africa’s single largest foreign direct investment to date estimated to cost over $20 billion. The project comprises of a global team of energy operators and developers led by ONGC Videsh Limited, Total alongside Mitsui, Bharat Petroleum, PTT Exploration, Oil India and ENH, Mozambique’s national oil and gas company.

The project includes both offshore and onshore components which will be covered by a combination of over $14 billion in senior debt facilities, equity and pre-completion cashflows. The senior debt facility consists of a mix of commercial bank loans, African development bank loan and Export Credit Agency (ECA) direct loans

LNG benefits from one of the world’s largest natural gas reserves off the coast of northern Mozambique. Its financial close is expected …