The European Investment Bank has agreed to provide a USD 135 million loan to co-finance a new 667km high voltage transmission line being built by TANESCO between Iringa and Shinyanga in Tanzania. The formal financing agreement was signed in Dar es Salaam by Ramadhani M. Khijjah, Permanent Secretary of the Ministry of Finance and Economic Affairs and Kurt Simonsen, Head of the European Investment Bank East Africa regional representation. The Tanzania Backbone Interconnector Project will improve electricity transmission from existing and future generating sources in the south of the country 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.  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.” highlighted Plutarchos Sakellaris European Investment Bank Vice President for 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. 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." added European Union Ambassador to Tanzania Tim Clarke.

"Let me thank the European Investment Bank for financing this project. Your involvement signifies the importance that you attach to the development of energy sector in Tanzania which we consider it as the 'life blood' for the socio-economic development of our country," said Ramadhani M. Khijjah, Permanent Secretary of the Ministry of Finance and Economic Affairs during the contract signing ceremony.

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. The link will transfer hydropower generated in the south to northern Tanzania, currently experiencing strong economic growth and increased demand for electricity 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 468 million 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. 

Notes for Editors

  • The European Investment Bank, the long-term lending institution of the European Union, whose shareholders are the 27 European Union member states, has been active across Africa for over 40 years. EIB activities follow policies and objectives set down by European Union member states whose Finance Ministers are the EIB’s Governors.
  • Over the last 5 years over EUR 8.6 billion has been provided by the European Investment Bank for projects across Africa. 

Media contacts:

European Union Delegation to Tanzania: ec.europa.eu/delegations/tanzania/index_en.htm