Tanzania will complete a $455-million power transmission line next year linking its power grid to Kenya and Zambia, part of plans to export electricity powered by its gas and coal reserves to neighbours, the Energy and Minerals Ministry said on Monday.
Tanzania, which has found commercial quantities of gas offshore and sits on big coal deposits, aims to double its generation capacity to 3 000 MW by 2016 to meet rising domestic demand and supply the region.
Power shortages are common across Africa and businesses often complain that poor or erratic supplies deter more investors and push up prices of local products, as many firms have to rely on costly generators when power is cut.
Known as the "backbone interconnector", Tanzania's Energy Ministry said the $455-million link would be in place by April, one of several regional projects that include links running between Kenya and Ethiopia and between Kenya, Uganda and Rwanda.
"The backbone project will link with Kenya's northern power grid and Zambia's southwestern power grid and transform Tanzania into a regional hub for the east and southern Africa power pool,” the ministry said in a statement.
The 667 km high-voltage line is being built with financing from the European Investment Bank, World Bank, African Development Bank, Japan International Cooperation Agency and Korean Economic Development Cooperation Fund.
Tanzania, Kenya and Zambia signed a deal in Dar es Salaam on September 30 to link the three countries. Tanzania's Energy Ministry said last year it was in talks with Kenya to export 1 000 MW of electricity to east Africa's biggest economy.
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. It also aims to export gas with a planned build liquefied natural gas plant.
It also has 5-billion tonnes of coal reserves and plans to build coal-fired power plants.