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Electrification of North-Western Tanzania Project

Region
Eastern Africa
Sector
Energy
Scope
IG
Grant Amount
EUR 7,600,000
Total project cost
EUR 42,600,000
Status
Under disbursement
PFG Lead Financier
KfW
PFG co-Financier
AFD

The project comprises the construction of a new 140 km 220 kV transmission line from Geita to Nyakanazi in North-Western Tanzania, the extension and construction of the respective substations, rural electrification in the vicinity of the transmission line and substations, and associated consulting services. The project will provide electricity in a region that is currently not connected to the national grid and at the same time displays significant economic potential in agriculture and mining. The interconnection of hydropower resources (Rusumo Falls) to the national grid will ensure a cheap and sustainable power supply in the region replacing costly diesel generation. Project implementation began in 2015 and is scheduled to be finalized end-2020.  The project is jointly financed by KfW - on behalf of the German Ministry for Economic Cooperation and Development (BMZ), AFD (Agence Française de Développement) and the EU-AITF.

The rural electrification component financed by the EU-AITF is a prerequisite to enhance access for households, small- and medium-sized businesses and social institutions to sustainable, reliable and affordable energy services for productive and consumptive use in a region currently not connected to the national grid. This can act as a catalyst to stimulate socio-economic development, employment creation and improved social service delivery. The reduced reliance on fuel wood for lighting and use of diesel will decrease deforestation pressures and CO2 emissions with positive climate effects and significant cost savings.

12/2018