CRDB BANK PARTNERS WITH UNITED BANK FOR AFRICA (UBA) TO SUPPORT RUFIJI HYDRO-ELECTRIC POWER (RHPP) AT STIGLERS GORGE
CRDB BANK PARTNERS WITH UNITED BANK FOR AFRICA (UBA) TO SUPPORT RUFIJI HYDRO-ELECTRIC POWER (RHPP) AT STIGLERS GORGE:
CRDB Bank Plc and United Bank for Africa (Tanzania) Ltd have partnered in an historic financial syndication to provide the $737.5m Bank Guarantees required by the Joint Venture (JV) of Arab Contractors and Elsewedy of Egypt for the execution of the $2.95 billion (TSh6.558 trillion) Rufiji Hydroelectric Power Project (RHPP) contract awarded to the JV by the Government of Tanzania in December 2018 to drive the industrialization objectives of the fifth phase government.
As per the terms of the contract, the JV is required to provide foreign and local bank guarantees for a total sum of USD 737.5 million in the form of performance guarantee and advance payment guarantee for the project. In this first of its kind, landmark financial deal CRDB Bank and UBA have partnered with Africa Export-Import Bank (Afriexim Bank) and other Egyptian banks to provide bank guarantees to TANESCO with the foreign portion scheduled for delivery to TANESCO on Monday, April 15, 2019 in a ceremony that will be witnessed by high ranking government officials, the JV Partners and other stakeholders in the project.
Upon completion, the RHPP project is set to produce 2100 MW of electricity to be added to the National grid to more than double the existing power generation capacity of TANESCO and help reduce power shortage in the country. The power generated will be evacuated via a new 400kV high voltage power line to substantiation where the power will be integrated into the national electricity grid.
The government of Tanzania has been considering establishing this power station since the 1960s which when fully developed, will be the largest hydro power station in Tanzania and East Africa. CRDB Bank and UBA as the co-arranger of the facility for this project commend the boldness and strategic focus of the Fifth Phase Government of President Magufuli on this initiative to drive its industrialization agenda and raise the Tanzania economy and its citizens to a Medium Income Countries status.
The mega energy project is deemed vital in government bid to diversify energy mix and end increasing electricity shortages as the economy and population of the country continues to grow.
About CRDB BANK PLC
CRDB Bank Plc is a leading, wholly-owned private commercial bank in Tanzania. The Bank was established in 1996 and has grown over the years to become the most innovative, first choice, and trusted bank in the country. Financing public and private sector projects has been at the forefront of CRDB Bank’s agenda. CRDB Bank Plc offers a comprehensive range of Corporate, Retail, Business, Treasury, Premier, wholesale banking and microfinance services through a network of 263 Branches, 552 ATMs, 15 Mobile branches, more than 5,500 agents (FahariHuduma), 1,200 Point of Sales (POS) terminals and 402 Microfinance partner institutions. CRDB Bank as a group comprises of three subsidiaries namely the CRDB Bank Burundi Ltd, CRDB Microfinance Ltd and CRDB Insurance Broker Ltd.
UNITED BANK FOR AFRICA (UBA)
United Bank for Africa Plc, as a leading Pan-African financial services group, with operations in 20 African countries, United Kingdom, United States of America and France has been a major supporter and financier of infrastructural development projects in all its presence countries in Africa. In Tanzania alone, UBA has provided over US$250m in different financing structures to government institutions and private companies to support various projects in the areas of power, water supply and road construction among others.
United Bank for Africa (T) Ltd was incorporated in Tanzania in 2009 as a subsidiary of UBA PLC which originated from the colonial era French British Bank (FBB) Limited that had been operating in Nigeria since 1949. UBA PLC from a single country operation founded in Nigeria – Africa’s largest economy, has today become one of the leading providers of banking and other financial services on the African continent. The Bank provides services to over 13 million customers globally, through one of the most diverse service channels in sub-Saharan Africa, with over 1,000 branches/customer touch points and robust online-real time digital banking platforms.