Kitewaka Hydro Project
The Kitewaka Project is in Ludewa District, Njombe Region, in southwest Tanzania. The Ludewa District was connected to the national electricity grid in late 2018 and had previously been supplied electricity with diesel generators. There are several large mining projects being developed in the Ludewa District which the Project could supply electricity.
The Kitewaka Project is a relatively low head (difference in elevation between water intake and powerhouse) project, however with the proposed design the the large waterflow of the Kitewaka River will allow the Project to generate 33.5 MWh in an average year and 27.8 MWh in a low waterflow year.
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The Project's development is well advanced; financial close is expected in the second quarter of 2022, construction to start in the third quarter 2022, and commercial operations to begin in the first quarter 2024.
Project in Brief
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Project Company: Ludewa Clean Energy Limited
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Project: 5.39 MW run of river hydro
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Location: Ludewa District, Njombe Region Tanzania
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Generation: 33,500,000 kWh / annum
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Total Investment: US$ 21 million
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Start of Construction: July 2022
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Planned Completion: December 2023
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The Project Company will sell its generation to the Tanzanian Electric Supply Company (TANESCO) under a 20-year SPPA with a tariff set in US$.
Milestones
Water Permit
Letter of Intent for PPA
Preliminary Environmental Assessment
Provisional Generation Licence
Land Title (99-year lease)
Feasibility Study
Investment Certificate
SPPA Execution
ESIA (IFC/EIB Standards)
Financial Close
Start of Construction
Commercial Operation
Achieved
Achieved
Achieved
Achieved
Achieved
Achieved
Achieved
April 2021
April 2021
June 2022
July 2022
January 2024
Investment Requirement
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Total completion cost of $21 million is expected to be funded with $6 million of equity and $15 million of debt sourced from development banks.
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The project is a commercially viable investment with projected cash flows that will allow it to service its debt and provide a healthy rate of return to equity investors.
