Tanesco in joint efforts to improve electricity supply

Gridworks is the UK government-backed investor in Africa’s electricity networks, while L&T is India’s largest construction company.

The Arusha and Tanga regions are classified as industrial locations needing a reliable supply of electricity.

“Electricity supply in those regions is currently insufficient. So, implementation of the agreement will see increased access to reliable electricity,” said Tanesco managing director Mr Maharage Chande during the signing ceremony.

Mr Chande said the project will take 30 months to implement and that a joint team from Tanesco and the other two companies will immediately commence a feasibility study that will show where the transmission routes will pass through without interfering with the environment. This will help determine the actual cost.

“We are very grateful to the UK government for investing in this project that will provide an opportunity for the residents of those regions to get reliable electricity,” he said.

For his part, Gridworks chief executive officer Mr Simon Hodson said investment in transmission is critical to the energy transition and economic development, as well as to energy access in Africa, where grid power still represents the best quality and lowest cost solution for businesses and local communities.

“Transmission infrastructure is capital-intensive, and increasing the available sources of finance for it is vital. It’s important that pools of private capital from development banks, infrastructure funds, and pension funds respond to this and continue to support this nascent market so that African governments have access to the same funding models that have been used successfully in other markets,” he said.

“This is the second transmission project we have announced, and we are working on a wider pipeline with a number of African governments,” he added.

On the other hand, vice president and head of power T&D for Africa at L&T, Mr Rahul Sikka, said; “Collaborating with Tanesco and Gridworks on the North-East Grid transmission project in Tanzania is a significant opportunity for the company.”

He said the project will play a crucial role in enhancing power access and reliability in Tanzania.

It will strengthen the transmission network that connects key regions of the country, paving the way to meet the rising demand for electricity.