Tanzania Backbone Interconnector Project
- Region
- Eastern Africa
- Sector
- Energy
- Scope
- TA
- Grant Amount
- EUR 24,323,000
- Total project cost
- EUR 383,000,000
- Status
- Approved
- PFG Lead Financier
- EIB
The project involves the construction of a new 667km HV transmission line between Iringa in south-West Tanzania and Shiyanga in the North. The new line is part of TANESCO (Tanzania’s power utility) short term strategy for national grid transmission line reinforcement and will link existing and future generating sources in the south and south West of Tanzania to the load centres in the North.
The ITF Grant will be used to subsidise the interest rate of EIB’s loan of EUR 109m this will enable Tanzania to meet IMF concessionality requirements. Furthermore as the loan will be passed on to TANESCO, the subsidy will help reduce the burden of the financial charges and consequently contribute to limit the magnitude of future tariff increases.
