Sector : Energy

Sub-sector : Transmission

Description : Promoting power interconnection across the continent and facilitating the creation of a Pan African power market.

• Promote and stimulate development of new power generation projects and electricity export potential.

• Improve quality of power to Northern Zambia (via Kasama) and Western Tanzania (Sumbawanga).

• Reinforce the national grid in Tanzania (and make Tanzania an operating/trading member of SAPP).

• Assist Kenya diversify fuel sources for generation -hydro, thermal, etc.

Countries : Zambia, Tanzania, Kenya

Project Location : Pensulo (Zambia) through Mbeya in Tanzania to Isinya Kenya via Iringa, Singida and Arusha (all in Tanzania)

Region : East and Southern Africa regions

RECs : EAC, COMESA, SADC

Progress Update 2014/2015 :

Tanzania Section

- Namanga-Arusha-Singida-Iringa-Mbeya: The EPC contractor has been procured for the Singida-Iringa segments while the financial arrangements for the Iringa-Mbeya and Namanga-Arusha sections are in progress and the segment is expected to be completed in 2016

- The feasibility study for Iringa-Mbeya component was completed in 2012. The Government of Tanzania is mobilizing funds for the project.

- Singida-Iringa component is part of the 670km Iringa- Shinyanga backbone transmission project (BTIP).Construction commenced in December, 2013 and is expected to be completed by June, 2016. TANESCO is implementing the 400 KV Shinyanga – Iringa

- Namanga (Border with Kenya) - Singida, which is part of the Tanzania-Kenya Power Interconnector Project, is jointly being implemented by the two countries Construction is expected to be completed by December, 2017.

- The feasibility study for Mbeya-Tunduma (Border with Zambia) is in progress and is expected to be completed in 2016.

- Tanzania with NELSAP are also undertaking the preparation of the 400 KV Iringa – Mbeya power transmission line in Tanzania;

Kenya Section

- On the project status, Kenya has completed the feasibility studies and detailed project design and has further mobilized financial resources for the construction of the Isinya-Namanga segment.

- Finance has been secured from AfDB and procurement of Consultant and EPC Contractors has commenced.  Construction is expected to start by March, 2016 and is scheduled for completion by December, 2017.

- Kenya and Tanzania have undertaken the final preparation of the 400 KV Kenya (Nairobi) – Tanzania line (Arusha – Singida)

- Interconnection is under the auspices of the Nile Basin Initiative /Nile Equatorial Lakes Subsidiary Action Program (NBI/NELSAP);

Zambia Section

- Zambia is implementing the 330 KV Pensulo – Kasama in Zambia.

- Internal lines are already funded except for the Kasama –Pensulo – Kabwe and the Mbeya –Kasama
(Tanzania – Zambia portion). Funds mobilsed from kfW

Major activities :

On the Tanzania-Zambia section

- Environmental Social Impact Assessment and Resettlement Action Plan

- For Mbeya (Tanzania)-Kasama (Zambia): The Feasibility Study is underway under the auspices of the Nile Basin Initiative/Nile Equatorial Lakes Subsidiary Action Program (NBI/NELSAP

Feasbility study :

- The scope of the feasibility study was initially limited to the Mbeya-Kasama segment of the Interconnector.

- The objectives of the Feasibility Study remain the same but with a new scope, looking at Mbeya-Kabwe instead of Mbeya-Kasama.

- The revised Feasibility Study will consider the technical, economical, financial, social and environmental pre-feasibility study of the new transmission line.

- Several layout options will be considered before any choice is made for the selection of line layout that will be considered for more comprehensive studies.

- Conceptual Design and Tender Documents for Tanzania-Zambia Interconnector are ongoing

- Kasama-Pensulo-Kabwe Section: The feasibility study is underway.

- The market study draft report was completed in March 2015

Recommendations :

∗ The financial requirements to move to the next step:

∗ Funding for internal requirements in Tanzania to be provided.

∗ PPA negotiations to be facilitated

∗ Update of PIM

∗ Preparatory works

∗ Funding gap for the cross border segment

∗ Total cost to be advised

Way Forward :

∗ In 2018 the Line should be operational

∗ Results of feasibility study determine

∗ PPA and Wheeling agreements to be finalised by 2016

In December 2015, the following is envisaged :

o Power purchase Agreement Negotiations and signing

o Signing of Wheeling Agreement

o Project Commissioning Phase 1

o Project Commissioning phase 2