Project: Equipment purchase to support a power generation plant

Access to reliable energy is one of Tanzania’s major challenges – just 11% of the population is estimated to have access to reliable energy. Due to prolonged drought across the country, its hydro-based power infrastructure has been unable to generate enough power to cope with domestic and industrial demand. Power outages running into hours in some regions have been common in Tanzania for months. In an effort to address the power situation that has reached crisis levels, the government contracted an energy company to build and operate a gas fired power plant that will eventually transmit power from the gas fields in the Somanga region to the capital Dar es Salaam. A regional bank provided bridge financing for the project while ATI backed the bank’s loan with an insurance cover protecting the bank against non-payment. The project will not only address the country’s immediate energy needs, but will also herald a strategic move by the government to diversify power generation away from hydro-based sources.

Maximum Sum Insured: $35 million