Kitewaka Hydro Project
The Kitewaka Project is located in the Ludewa District, Njombe Region, in southwest Tanzania. The Ludewa District is to be connected to the national electricity grid in late 2018 and had previously been supplied electricity with diesel generators. There are a number of 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.
The Project's development is well advanced with the Renewable Energy Performance Platform providing technical and financial support; financial close is expected in the first quarter of 2020 and construction to start in the second quarter 2020.
Project in Brief
Project Company: Ludewa Clean Energy Limited
Project: 5.39 MW run of river hydro
Location: Ludewa District, Njombe Region Tanzania
Generation: 33,500,000 kWh / annum
Total Investment: US$ 21 million
Start of Construction: April 2020
Planned Completion: March 2022
The Project Company will sell its generation to the Tanzanian Electric Supply Company (TANESCO) under a 25-year SPPA with a tariff set in US$.
Letter of Intent for PPA
Preliminary Environmental Assessment
Provisional Generation Licence
Land Title (99-year lease)
REPP Support Agreement
ESIA (IFC/EIB Standards)
Start of Construction
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.
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.