has approved an additional International Development Association credit of $80 million to support Tanzania’s Energy Development and Access Expansion Project.
The money will support cost overruns related to adding, replacing or upgrading transmission and distribution lines, as well as substations and medium and low-voltage equipment.
According to the World Bank, the additional financing will also fund additional capacity building, which relates to Tanzania Electric Supply Company’s (
) environmental unit and foresees strengthening of the utility’s capacity for environmental management.
The World Bank says this capacity building measure will support activities related to the environmental management aspects in the context of the Lower Kihansi Environmental Management Project.
John McIntire, the World Bank’s country director for Tanzania, said: “Despite advances, access to electricity in Tanzania remains a serious infrastructural shortcoming, which hurts economic growth and industrial development.”
The World Bank’s Africa Infrastructure Diagnostic study estimates that load shedding and emergency generation costs Tanzania over 5 per cent of annual GDP.