Tanzania’s North East Grid electricity transmission project is to receive investment and development assistance from UK State-owned company Gridworks. The British concern, a subsidiary of UK development finance institution British International Investment, exists to support the development of electricity networks in Africa. The value of the investment has not yet been released.

The development of the North East Grid will be a trilateral affair between the Tanzania Electric Supply Company (Tanesco), Gridworks and Indian multinational group Larsen & Toubro Construction (L&T). The three entities signed a memorandum of understanding (MoU), covering the project, in Tanzania’s main city, and financial capital, Dar es Salaam, on Thursday.

“We are excited to have signed an [MoU] between Tanesco, Gridworks and [L&T] to construct the North East Grid transmission lines, specifically in Arusha and Tanga,” enthused Tanesco MD Maharage Chande. “The government of Tanzania is ready to work closely and increase cooperation with Gridworks and L&T in investing in the grid transmission lines for the development of the people of Tanzania.”

“Investment in transmission is critical to the energy transition. It is also critical to economic development and energy access in Africa where grid power still represents the best quality, lowest cost solution for businesses and local communities,” highlighted Gridworks CEO Simon Hodson. “Transmission infrastructure is capital intensive and increasing 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.”

The North East Grid will be developed in three phases. Gridworks will be involved in the development of three transmission lines and three substations. The first of these transmission lines will be a 400 kV line from the central Tanzanian city of Dodoma, east to Chalinze. The second will also be a 400 kV line, from Chalinze, north-east to Segera. The third transmission line will be a 220 kV line from Segera, north to Tanga. Regarding the substations, one, at Dodoma, will be upgraded, while the other two will be newly built, at Segera and Tanga.

“Collaborating with Tanesco and Gridworks on the North East transmission project in Tanzania is a significant opportunity for L&T,” affirmed L&T VP and Power T&D for Africa head Rahul Sikka. “This 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, stimulating economic growth, creating opportunities for more businesses to thrive, and improving the overall quality of life for local communities. In addition, it further aligns with the nation’s broader vision of enhancing interconnections with neighbouring countries like Zambia and Kenya.”

The North East Grid forms part of the Tanzanian government’s 2025 Power System Master Plan 2025. The Tanzanian government is seeking the creation of 6 200 MW of new electricity generating capacity by the end of this decade, and, over the next ten years, the construction of more than 9 000 km of high voltage transmission lines, 12 090 MVA of transformer capacity and 56 new substations.