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 theTEDAP Credit Line Steering Committeereviewed 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 2011