Tanzania and Kenya have secured a $145 million (ZAR2 billion) loan from the African Development Bank (AfDB) to fund the construction of a transmission line between the two east African countries.
The AfDB announced this decision on Thursday in support of increasing regional cross-border power connections, the Wall Street Journal reported.
The funds will cover the construction of a 508 kilometre transmission line as well as relevant substations which have the capacity to transmit 2 000MW in both directions.
“The project is expected to improve the supply, reliability and affordability of electricity in the east African region”, the AfDB said in a statement.
Last year the Energy and Minerals Ministry said that Tanzania will develop a $455 million (ZAR5 billion) power transmission line by April 2015 connecting their power grid to Kenya and Zambia.
Known as the ‘backbone interconnector’ it will deliver a more reliable power supply, and increasing trade profits as expensive diesel powered generators would no longer be a necessity.
Tanzania has 46.5 trillion cubic feet of proven natural gas reserves and is investing in a pipeline and new gas-fired power plants to boost generation. The country also has 5 billion tonnes of coal reserves and plans to build coal-fired power plants. There are also plans to export liquefied natural gas (LNG) for a planned build LNG plant.