Tanzania: A Game Changer For Rural Livelihood, Economic Development In Njombe Region With Luponde Hydro Project

By Prosper Makene

The Luponde Hydro and Rural Electrification Power Project (LHREPP), an integrated renewable energy infrastructure project in Njombe District, Njombe Region is a real game changer with immediate results obtained in poverty reduction, improvement of rural livelihood and economic development.

Construction of the LV and HV network for the six villages in the Region namely Miva, Lusitu, Luhololo, Iduchu, Igola and Uliwa under the project’s Licensed Distribution area is now complete, and all 6 villages and their sub-villages are electrified. The project has to date connected more than 800 customers. This is inclusive of all 4 dispensaries/clinics, 8 schools in the project area, as well as 14 religious institutions and 101 Small and Medium Enterprises (SMEs).

The project which incorporates two adjacent Small Hydro Power sites totalling 2.9 MW and an associated rural distribution network, which is planned to benefit a population of over 14,000 directly or indirectly, has shown a great impact after the first phase was completed in 2019.

“Phase I, the 0.9 MW Luhololo part of the 2.9MW project and the associated 41 km of rural distribution network has already been completed and commissioned since 2019. Phase II, the 2MW Igola part of the 2.9MW project is still under construction,” LHREPP’s Project Manager Eng. Maxwell Mugombe told reporters over the weekend during the media tour at the project site.

Eng. Mugombe has further said that the total projects cost is approximately US7,000,000 and a total investment to date into Luponde Hydro project has amounted to above USD 4 million which represents approximately 57% of the estimated final project capital cost.

“The value includes a total of USD 2,975,000 spend under Phase I, a combination of development costs incurred on the 0.9MW Luhololo project and the rural distribution network and USD 1 million spent on the pre-development and construction of the Phase II hydro structures,” he said.

Project Progress and Benefits

The Project Engineer has further said that the  Phase II( 0.9MW Luhololo)part of the 2.9MW Luponde hydro project has been running smoothly in grid operation since the 8th of February 2021 when it was successfully interconnected with TANESCO (having initially been commissioned in island mode in June 2019).

“The plant has to date delivered a total of more than 11.5GWhrs to the national grid. The plant on the other hand over the period has frequently been operating in an ‘extended island mode’ providing reliable power to both our own customers as well as significant sections of the neighbouring TANESCO Njombe grid during periods of main grid outages and load shedding. The extended Island covers two major factories (Luponde Tea Factory and Unilever Tea Estate) and a lot of SMEs, schools and hospitals,” he said.

He noted: “Additionally when grid-connected, the plant continues to provide much-needed voltage support at this ‘end of grid’ location, and has significantly reduced the voltage fluctuations that have been historically encountered by the industrial customers in the surrounding area, whilst also already measurably reducing the transmission losses within the surrounding TANESCO grid.”

He further said that the SPPA for the remaining Phase II (2MW Igola) part of the 2.9MW project was finally closed in November 2022. “We are currently endeavouring to achieve financial close on a suitable loan facility to fund the remaining construction costs. A shareholder bridging loan amounting to US$ 595,867 was availed in March ahead of financial close to place an order for the turbine (which forms the critical path for the project implementation).”

He insisted: “Orders for the headrace and penstock pipes will soon be done once financial close with the commercial loan facility has been reached, and this is expected in July.”

He underscored that the addition of phase II( Igola 2MW plant) to the network will further increase the extended Island operation to cover a larger TANESCO network during any main grid outage periods as well as further stabilize the grid, thereby providing reliable and quality power supply to the Njombe network.

The project under its sister company Mwenga Power Services Limited continues to actively promote the Productive Use of Electricity to its customers through the supply of electrical gadgets such as pumps, electric motors, electric stoves, heaters, irons, kettles, blenders and washing machines, amongst other things.

Beneficiaries

Beneficiaries of the project have commended Mwenga Power Services Limited for bringing the electricity project to their villages, saying that the power has improved their economic activities.

Israel Kiwele and  Lemik Sambala are among the carpenters in Lusitu Village, Njombe District who benefit from LHREPP, a rural electrification programme that is helping reduce poverty and improve rural livelihood.

Kiwele and Sambala are planning to expand their workshop after being connected to the electricity through LHREPP. “We are optimistic about earning more income from timber works after being connected to electricity through Luponde Hydro and Rural Electrification Power Project.”

Sambala insisted: “After electricity was connected in the village, we’re now using electrical machines and our work has become easier and we’re making more money.”

Apart from that, the electrification project has also improved individual quality of life, facilitates community services such as health and education and enables business entities to carry out their activities for rural populations.

Luhololo Secondary School Assistant Head Master said that after getting power from the project, their students are now performing better in examinations as they get more time to study. “We don’t have division zero after getting the electricity; our students have now enough time for the preparations during the night hours.”

On her part, Martha Mwasenga, a nurse at Lusitu Dispensary in the project area said: “After being connected with the electricity, we are now offering much better health services to our patients – for example, night-time care for maternity and other emergency services and refrigerators for vaccination as well drugs.”

Others, like Emela Muhle, a businessman of Lusitu village in the district switched to a more profitable activity after a power connection in his village.

He has opened an entertainment spot at the village and employed young people as his assistants.

Muhle said: “Before we were connected to electricity, we did not have entertainment services such as music, party halls and big bars in this area, when someone needed the services, had to travel a long distance to Njombe town and it was expensive.”