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The assessment finds that the Kakono Hydropower Plant (HPP) is the most sustainable and cost-effective energy option for northwestern Tanzania, demonstrating high climate resilience and the highest net societal benefits. Compared to a utility-scale diesel plant and a gas-solar PV portfolio, the HPP offers the lowest levelized cost of electricity (LCOE) and the most attractive net present value (NPV), particularly when environmental and social externalities are internalized. While the HPP causes some habitat loss and carbon emissions during construction and reservoir operation, these are offset by significant employment generation and the avoidance of high fossil fuel emissions. The report concludes that the HPP is a viable investment for multilateral banks like the African Development Bank, provided that mitigation strategies for GHG emissions and habitat loss are implemented.