15 January 2010 – The Millenium Challenge Corporation (MCC) has plans to sponsor a project that will be implemented by the Tanzania Electricity Supply Company (Tanesco).  The project is scheduled to improve power supply to over 70 villages in the Tanga region. 

The first phase of this project is now ready to be launched following preparation in the form of surveys and evaluation aimed at preparing payment of compensation in the 77 villages that are involved in the project.  This project is comprehensive in that it aims to supply power to 27 villages in the Lushoto district, 14 villages in the Muheza district, 7 villages each from Handeni and Korogwe, 3 villages from Pangani, and 19 areas covered in Tanga City.

Approximately $206 million will be funded by MCC for projects in Tanga as well as four other regions in an attempt to improve electricity supply throughout several key regions of the country.   These projects are all a part of a three-year programme to rehabilitate and expand power supply and distribution systems using both local and donor funds.  Other scheduled implementations include improving electricity to the Kigoma region, constructing an 8MW power supply project on the Malagarasi River, rehabilitation of the main power distribution station at Songa, and improved power transmission to Zanzibar via submarine cable.  The partnership should yield positive results for the economy and regional industry as power supplies stabilize.