Name and Location
Zambia–Tanzania–Kenya power interconnector project.

Project Description
The interconnector project will start from the Pensulo substation, near Serenje, in the south of Zambia, and travel along to Mwakibete substation, near Mbeya, in Tanzania, before landing in Kenya’s capital, Nairobi. The project will entail the construction of a 1 447-km-long high-voltage power transmission line, which will link all three countries.

The aim of the project is to promote electricity trade, enhance security of supply and foster economic and regional integration through the interconnection of the three countries’ power systems.

Value
The total cost of the project is estimated at $780-million, of which $380-million will be funded by the Zambian government, $310-million by the Tanzanian government and $90-million by the Kenyan government.

The three governments have secured joint grants from the African Development Bank and the Development Bank of Southern Africa for the preparatory activities on the project.

Duration
Construction of the powerline will start in November and is planned to be operational in 2015.

Client
The governments of Zambia, Tanzania and Kenya, represented by a single special-purpose vehicle. The project is being developed through the public sector.

Key Contracts and Suppliers
The Project Implementation Unit, consisting of staff from all three countries, has been formed to manage and coordinate the implementation of the project and its commissioning.

Latest Developments
In May, the Industrial and Commercial Bank of China committed itself to a $285-million loan to Zambia, with construction of the interconnector to be carried out by China’s TBEA.

The loan is intended for the 365 km stretch that falls within Zambia and will be paid over 20 years, with a five-year grace period.

The interconnector is forecast to boost mineral exploration, agriculture and tourism in the three countries, in addition to assisting in the development of greenfield hydropower stations in northern Zambia, where, according to analysts, construction will continue to be hampered by lack of connectivity to the national power grid.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Zambia Electricity Supply Corporation, Monica Mulenga Chisela,
tel +260 1 22 8084, fax +260 1 22 1342 or email mchisela@zesco.co.zm.