EIB to help finance transmission project in Tanzania

14 December 2010

The Tanzania Backbone Interconnector Project – being built between Iringa and Shinyanga – will improve electricity transmission from existing and future generating sources in the south to the north. As a key link in future interconnection with Zambia and Kenya the project will also promote regional economic cooperation and development.

“The European Investment Bank is committed to supporting energy infrastructure across Africa. The Tanzania Backbone Interconnector Project is a key Infrastructure project that will reinforce electricity supply in Tanzania,” said Plutarchos Sakellaris European Investment Bank Vice President for Africa. “It will provide access to electricity in rural areas, improve grid stability and in the future it will also reinforce the supply of energy across East Africa.”.

"Preparation of this project has been a model of cooperation between the Tanzanian Government, Tanesco and international development partners. I am very happy that the European Union, through the European Investment Bank, is part of this joint effort,” added European Union Ambassador to Tanzania Tim Clarke. “No doubt that the Backbone Project will make a decisive contribution to poverty reduction not only in Tanzania, but also in the wider region. Access to energy is crucial for growth and development, and is a cornerstone for cooperation between the European Union and Africa."

The Tanzania Backbone Interconnector Project is part of the Tanzania Electricity Supply Company (TANESCO) National Grid reinforcement strategy and will provide access to cost-efficient electricity essential for private sector development in the country. The project comprises the construction and operation of a 667km 400kV AC double circuit transmission overhead line between Iringa, Dodoma, Singida and Shinyanga. Eventually the line will become part of the infrastructure connecting the East and Southern African Power Pools.

The US$468M transmission project will be co-financed by the European Investment Bank, World Bank, African Development Bank, Japan International Cooperation Agency, Korean Economic Development Cooperation Fund with the balance financed by the Republic of Tanzania.

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