Reviewed TEDAP Credit Line On-Lending Interest Rate
The TEDAP credit line was established to address the lack of longer maturity
deposit or funding sources for commercial banks in Tanzania to extend long term
loans to renewable energy projects. The credit line became effective September
1st 2010 but no funds had been disbursed by August 2011, due to the fact that
commercial banks considered the credit line on-lending rate to be much higher
than their own actual cost of funds. On 24th August, 2011 the TEDAP Credit Line
Steering Committee reviewed the formula for determining the On-Lending Interest
Rate to make it more market reflective. As a result, the Credit Line On-Lending
Interest Rate has been reduced from 6.24% to 5.61 % effective from 21st July.
About REA
The Rural Energy Agency (REA) was established by the Act of Parliament No.8
of 2005 as an autonomous institution to administer the
Rural EnergyFund (REF). REA is governed by the
Rural EnergyBoard (REB).
The main function of REA is to promote investment in modern energy services
by working with key partners and collaborators from the private sector, NGOs,
CBOs, and Government agencies to mobilize resources in order to achieve its
objectives. The Agency, in partnership with investors, identifies modern energy
projects, provides training, in project identification and preparation,
technical assistance, and provides managerial and financial assistance in order
to enhance energy projects sustainability.
In collaboration with key service sector institutions and ministries
responsible for rural services (e.g. health, education, rural development,
water, etc.) the Agency promotes modern energy supply for productive use aiming
at reducing poverty and raising the livelihood of communities in the rural
areas.
Click here to learn more about REA.
Contacts
Director General Rural Energy Agency - REA
dg@rea.go.tz
info@rea.go.tz