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Dar es Salaam – The government, through the Agency for Rural Energy (REA), has launched a support mechanism called Renewable Energy Project Development Facility (REPDF) ), which will finance eligible project development activities in rural areas.
The $ 5.25 million (about 12 billion shillings) fund is funded by donors such as the World Bank, the Swedish International Development Cooperation Agency (Sida) and DFID.
Elineema Mkumbo, director of marketing and technology development at REA, said the funds would go to developers of projects dealing with renewable mini-grids (solar, wind, small hydropower and biomass). a production capacity of less than 10 MW each.
"This support mechanism will also help suppliers to acquire an effective consultancy service because most project providers have not been able to properly prepare their documents and proposals, they have not been successful. to obtain financial assistance to undertake energy projects in rural areas, "he said. I said.
According to Mr. Mkumbo, through REPDF, the providers will receive part of their external costs in the form of consultants hired to undertake pre-investment advisory missions, such as feasibility studies, business plans and social and environmental assessments.
"To support the development of mini-grid electrification projects in mainland Tanzania, REPDF will provide 90% of the necessary funds and will be paid directly to the consultant, while project developers will contribute only to 10% . "
Mr. Mkumbo noted that requests for funding assistance can be directed to the agency's website, where project providers will be evaluated by experts to verify their eligibility.
The Rural Energy Agency (REA) is an autonomous agency under the Ministry of Energy and Minerals of the United Republic of Tanzania, which became operational in October 2007.
Its main role is to promote and facilitate better access to modern energy services in rural areas of mainland Tanzania.
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