• Tulila hydroelectric power plant

    The project comprises the planning, development, financing, construction and operation of a 5 MW hydropower plant on the Tulila River in the southwest of Tanzania, in the Ruvuma region.

    The project site was selected by the African Benedictine Sisters of St. Agnes, Chipole Convent (“BSSA Convent”), who already operate a small hydropower plant in the region for their own power supply. Founded on June 5, 1938, the BSSA Convent has around 370 sisters whose mission is to serve people from all social classes, especially the poor in the community. It is located in Chipole, about 50 km west of Songea, the capital of the Ruvuma region in south-western Tanzania.

    The total project costs amount to around USD 26.4 million, of which USD 18.5 million are financed as part of long-term project financing via a loan covered by Swiss Export Risk Insurance (SERV).

    The basic idea of the Swiss project sponsor was to donate the project to the BSSA Convent in order to create a constant future income stream to finance the charitable activities of the BSSA Convent. Based on a long-term power purchase agreement with the state utility TANESCO, the electricity is fed into the regional electricity grid, which is not connected to the national grid, and supplies approximately 7’500 households. In addition, the Tulila project makes it possible to largely replace electricity generated by diesel generators.

    It is built as a run-of-river power plant with earth dams and a weir system to channel the water to the generators and increase the natural head.

    Key project data

    • Project type: Hydroelectric power plant
    • Financing: SERV-covered financing
    • Project volume: USD 26.4 million
    • Financing volume: USD 18.5 million
    • AIL client: Swiss sponsor (private person)
    • End client: Benedictine monastery in Tanzania
    • Financial closing: July 2014
    • Scope of project: Construction of a 5 MW hydroelectric powerplant

    Stable electricity supply for the surrounding villages

    The power plant is operated and maintained by the sisters of the adjacent Benedictine monastery under professional supervision.

    AIL Scope of work

    • Structuring of the entire project, incl financial and delivery structure
    • Preparation of the necessary documentation for financing (e.g. business plan, financial model, financing SERV applications)
    • Advising and supporting the client in contract structuring and negotiations
    • Managing and coordinating all activities of the financing process
    • Coordination and fulfillment of reporting obligations under the export credit agreement for the client