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Tanzania Backbone Interconnector Project

Region
Eastern Africa
Sector
Energy
Scope
IRS
Grant Amount
EUR 13,700,000
Total project cost
EUR 383,000,000
Status
Under disbursement
PFG Lead Financier
EIB

The project comprises the construction and operation of a 667 km 400 kV AC double circuit transmission overhead line between Iringa, Dodoma, Singida and Shinyanga. The link will transfer hydropower generated in southern Tanzania to northern Tanzania, where economic growth is strong and demand for electricity increasing due to developing mining and industrial activities. Eventually the line will become part of the infrastructure connecting the East and Southern African Power Pools.  The USD 468m transmission project will be co-financed by the EIB (28.45%), the World Bank (29.72%), AfDB/ JICA (27.44%) and Korea EDCF (7.63%), with the balance (6.77%) financed by the Republic of Tanzania (the borrower) and/or TANESCO (the Promoter).

The IRS Grant from the ITF is used by EIB to reduce the interest rate applicable to its loan of EUR equivalent of USD 134.5m, so that it reaches the IMF concessionality requirements.

12/2017