China Eximbank agrees in principle to provide $136 million loan for Singida Wind Power Project

According to a 2014/2015 Audit Report of Public Authorities and other Bodies from the Tanzania National Audit Office (p. 139-140), on December 16, 2011, after a successful feasibility study and the completion of an environmental impact assessment (EIA) by Power Pool East Africa, Tanzania's Ministry of Energy and Minerals formally asked theTanzania's Ministry of Finance (MOF) to submit a concessional loan request to China Eximbank for $136 million to finance the Singida Wind Farm Project. Then, on December 19, 2012, the Tanzania's Ministry of Finance submitted a letter to China Eximbank requesting that the loan carry a 1% interest rate and 25-year repayment period. On August 26, 2015, China Eximbank counter-offered with a 2% interest rate and 20-year maturity. On January 5, 2016, the Tanzania Ministry of Finance wrote a letter to inform various Geo Wind stakeholders that the Government of Tanzania decided not to issue a sovereign guarantee for the China Eximbank loan and therefore the National Development Corporation (NDC) would need to look for other financing alternatives. On February 7, 2013, National Development Corporation (NDC), Tanesco, and Power Pool East Africa Limited created a special purpose vehicle (SPV) called Geo Wind Power Tanzania Limited to implement this project. NDC owns a 60 percent ownership stake in the company, Tanesco owns 20 percent, and Power Pool East Africa Limited also owns a 20 percent ownership stake. The purpose of the Singida Wind Power Project is to establish a 100MW solar farm to supply energy to Tanzania's national grid. It is located at Unyianga Village, 14km West of Singida Municipality along the Singida-Mwankoko Road, some 700 km from Dar es Salaam in central Tanzania.

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3

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