Tanzania/Kinyerezi Gas Combined Power Plant Project

March 30, 2015

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance ("NEXI") has decided to provide insurance for loans extended for the Kinyerezi 240 MW gas-fired combined cycle power plant project ("Kinyerezi power project") in the Republic of Tanzania on which the EPC contract was signed between Sumitomo Corporation of Japan and Tanzania Electric Supply Company Limited ("TANESCO"), a national power company of Tanzania. This is the first time that NEXI has provided insurance for a finance project in Tanzania.

The Kinyerezi power project is to construct Tanzania's first gas-fired combined cycle power plant that will be built about 30 km southwest from Dar es Salaam. Most of the main equipment and control system for the highly effective power plant will be delivered by Japanese companies together with technical services with a view to localization of plant management technology and local staff development.

With an urgent and increasing demand for electricity, the Kinyerezi power project is expected to supply approximately 20% of Tanzania's power generation capacity by using the natural gas produced in the country. Through the exports of high-efficiency power equipment and personnel training for this large-scale power generation porject, Japanese companies will contribute to alleviating severe power shortages in Tanzania.

Sumitomo Mitsui Banking Corporation ("SMBC") and Japan Bank for International Cooperation will jointly finance the project, and NEXI's insurance will be for the loans provided by SMBC.

NEXI will continue to support the expansion of exports by Japanese companies as well as opportunities for Japanese companies to participate in overseas projects.

Borrower The Government of the United Republic of Tanzania acting through the Ministry of Finance
NEXI Covered Lender
Sumitomo Mitsui Banking Corporation
NEXI Covered Facility
(Insured Amount)
Approximately US$ 117 Million
Covered Risks Political Risk and Commercial Risk 100%