The African Development Bank has approved a 113 million US dollar loan to fund a cross-border hydro-power project aimed at easing chronic energy shortages in Tanzania, Rwanda and Burundi.
Lack of access to electricity is a major constraint to economic growth in the region.
The loan will fund construction of electricity transmission facilities for the 80-megawatt Rusumo Falls project on the Tanzania-Rwanda border.
"Construction of the transmission facilities is expected to be completed by August 2018; the three countries will share the power generated equally," AfDB said in a statement late on Wednesday.
The estimated cost of the project is 468.6 million US dollars, with the AfDB funding the transmission facilities.
The World Bank said in August it had approved a 340 million US dollar loan for construction of the hydropower plant.