DEVELOPMENT NEWS
OPEC Fund contributes to Morocco earthquake relief
T he OPEC Fund approved a US$500,000 grant to support immediate and medium-term humanitarian relief e ff orts in response to the devastating earthquake that struck Morocco on September 8. The earthquake, with a magnitude of 6.8, inflicted severe damage and claimed thousands of lives, making it the largest earthquake to hit Morocco in more than 100 years. The emergency aid will address critical needs including the provision of food, safe water and shelter, as well as protection and prevention measures as part of the overall relief operation. The grant will be channeled through the International Federation of Red Cross and Red Crescent Societies (IFRC) and will provide vital assistance to the Moroccan Red Crescent Society. The grant is intended to assist the most vulnerable segments of the population such as families, children, people with disabilities and the elderly.
New power transmission line in Tanzania will strengthen energy security Project to tap in to country's potential for renewables
A new US$60 million loan by the OPEC Fund and partners is expected to significantly strengthen energy security in northwest Tanzania. The project will include the construction of a 166 km overhead transmission line connecting the Kagera region to the national grid, replacing the current energy supply from Uganda with local hydropower resources. Tanzania has enormous potential in the field of renewable energy. As one of the countries bordering Lake Victoria, which is fed by the Kagera River, Tanzania is investing heavily in the expansion of its hydropower capacity with plants under development at Rusumo and Kakono in its northwestern region. The two new hydropower plants are expected to be operational in 2024 and 2030 with nominal capacity of 80 MW and 87 MW, respectively. The financing of the project will be shared among several partners: The OPEC Fund with a US$30 million loan, as a first tranche of a US$60 million facility, will be joined by the Abu Dhabi Fund for Development (US$30 million), the Saudi Fund for Development (US$12.8 million) and the government of Tanzania with US$2.6 million. Other backers are set to finance a downstream distribution network that will connect many unserved communities to the grid.
The OPEC Fund will contribute a loan of US$60M to the project
The construction of the new transmission line will allow Tanzania to reduce its dependence on energy imports. This diversification will enhance energy security and save costs by eliminating the need to pay for imports in foreign currency. Furthermore, the expansion of hydropower generation will allow the country to shut expensive and polluting back-up thermal power plants, leading to a cleaner and cheaper energy sector in Tanzania. Northwest Tanzania’s Kagera region is one of the country’s poorest with average income less than half the national average, according to the National Bureau of Statistics. With the regional economy dominated by agriculture, improved power supply will allow other sectors to establish themselves in the region and help to fulfill its potential.
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