Tanzania to spend US$680M on electricity

electricity pole

Tanzania is expected to spend $680 million (about Tsh.1.5 trillion) for the implementation of rural electricity supply project phase III after the completion of rural electricity supply project Phase II in June this year.

This has been revealed by the Deputy Minister of Energy and Minerals Dr. Medard Kalemani when giving brief details on the implementation of Rural Energy Agency (REA) budget for financial year 2015/2016. He announced an action plan for the budget for the financial year 2016/17 to the Parliamentary Standing Committee on Energy and Minerals.

He said that nearly 6,000 villages in rural areas will be connected to electricity service in for the third phase of the project which is being undertaken by Rural Energy Agency (REA).

“REA expects to implement phase III project for three consecutive years where we expect to spend the said amount and this will be the last phase,” he said.

He said the implementation of Phase II of the Rural electrification has now reached 89% and that the villages which were not included in both previous phases will be imported into the project urging stakeholders to provide information to Tanzania Electric Supply Company (TANESCO) for villages which needed to be included in the design of electrical extradited.

The deputy minister urged that part of social services such as schools, health centers, and places of worship, to be given priority when electrical connections are done in order to benefit a lot of people and facilitate the provision of services in these areas.

In his comments REA Director General, Dr. Lutengano Mwakahesya explained that the project is focused in transmitting electricity at the Headquarters of 13 districts namely Buhigwe, Busega, Chemba, Itilima, and Kakonko.

Others are Kalambo, Kyerwa, Mkalama, Mlele, Momba, Nanyumbu, Nyasa and Uvinza where until now only Momba district is not connected to the service.

He added that the purpose of government is to connect all villages in the country by the year 2021 as it planned to connect 2,000 villages per year to roughly 15,000 villages existing in service, until now only 5,200 villages are beneficiaries of the project.

This comes just few days after the Millennium Challenge Corporation (MCC) announced that it will not release to Tanzania $470 million to fund electricity projects. According to a statement the Corporation’s Board decided to cease all activities related to the development of a Second Compact with Tanzania.

Source: East African Business Week