Tanzania secures loan for Nyakanaz–Kigoma transmission project

 Nyakanaz – Kigoma power transmission line project. (Photo: Spencer Jarvis/FreeImages.com)
Nyakanaz – Kigoma power transmission line project. (Photo: Spencer Jarvis/FreeImages.com)

Tanzania has been granted a loan worth $123.39 million to finance part of the country’s North-West Grid 400kV Nyakanaz–Kigoma power transmission line project.

The funding was approved last Friday by the multilateral development finance institution, the African Development Bank (AfDB).

The project aims to improve supply, reliability and affordability of electricity in the Kigoma Region in north-western Tanzania by providing main grid access for the socio-economic transformation of the region in line with the country’s 2025 vision.

It is projected to increase electricity access from 16.2% to 20% in the region with over 483,000 households by 2024.

This power transmission line to be completed by 2024 involves the construction of a 280-km 400KV transmission line from Nyakanazi to Kigoma; extension of Nyakanazi substation and construction of a new substation at Kigoma; and integration of existing Kigoma and Kasulu 33KV distribution networks with the main grid including supply of last-mile connection materials to serve at-least 10,000 new consumers in Kigoma Region.

Consultancy and audit services as well as compensation and/or resettlement of people affected by the project will also be implemented.

The project will be financed from three sources, namely, the AfDB loan, the South Korea Economic Development Co-operation Fund and the government of Tanzania. The funds, which represent 66%, 24% and 10% respectively of the overall cost, is estimated at $186.12 million.

Power transmission line

The power transmission line project will lower energy production costs by decommissioning expensive diesel-powered plants in Kigoma and Kasulu urban centres including surrounding areas.

In addition to enhancing job creation, the project is expected to reduce greenhouse gas emissions in north western Tanzania.

Furthermore, it will complement the ongoing Bank-funded 220 kV Rusumo-Nyakanazi regional transmission line including the multinational 80MW Rusumo Hydro Power Plant as well as other development partner supported energy infrastructure programmes in north western Tanzania.

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