The European Union (EU) through the Agence Française de Développement (AFD) has provided Tanzania with 30 million Euros (84 billion Tanzanian shillings) for the implementation of a project to build electricity transmission infrastructure between Tanzania and Zambia.
Part of the funds, amounting to 26 million Euros equivalent to 72 billion shillings, contract was entered into yesterday in Dar es Salaam (December 15, 2020) between the Permanent Secretary of the Ministry of Finance and Planning Mr. Doto James, Ambassador of France to Tanzania Hon. Frederic Clavier and Resident Director of the The Agence Française de Développement (AFD) Ms. Stephanie Mouen Essombe.
Permanent Secretary Ministry of Finance and Planning Mr. Doto james, said that the amount of 26 million Euros will be used to build a power station – Tunduma, to build a 330 kv transmission line with a length of 4 km from Tunduma to the Tanzania-Zambia border.
“This project also involves the construction of a new power transmission line in rural areas, which has not been reached by the National Grid and increasing the capacity of existing power transmission lines through Iringa – Kisada – Mbeya – Tunduma – Sumbawanga ” stated Mr. James
He explained the move would increase access to reliable electricity and boost productivity in rural areas as well as increase access to electricity in inaccessible areas and in areas where electricity is scarce, especially in the South West of our country, which is rampant.
Mr. James stated that the support shows that the French Republic and the European Union are good friends of the United Republic of Tanzania, contrary to the notion of some rivals who claim that Tanzania’s relations with its development partners are deteriorating.
“Through this good relationship we realize that the AFD investment rate for the Government of Tanzania has reached approximately 454.5 million Euros, equivalent to 1.26 trillion shillings which includes the recently signed agreement for a 100 million Euros concessional loan for this project,” he added. Mr. James.
The Director General of AFD Stephanie Mouen Essombe stated that a few months ago her organization signed a soft loan agreement worth 100 million Euros for the implementation of the Tanzania-Zambia power transmission project.
“Today we have met again for the signing of an additional 26 million Euros equivalent to 72 billion shillings which is support provided by the European Union through our Organization” said Ms. Stephanie
He said the Tanzania-Zambia Power Transmission Project is the final phase of a corridor project from Ethiopia, Kenya, Tanzania and Zambia aimed at reducing energy costs as well as boosting the country’s economy.
He stated that in the near future, his organization will provide another 130 million Euros for the implementation of another massive solar power project (solar PV Power) with a capacity of 50 megawatts, to be built in Shinyanga region.
For his part, the Ambassador of France in Tanzania Hon. Frederic Clavier, stated relations between Tanzania, France and the European Union are strong and that those countries will continue to contribute to the country’s development through all efforts.
He explained that his country through theAgence Française de Développement (AFD) will continue to invest in various economic and social issues where over the past 10 years the AFD Board of Directors has approved the use of 430 million Euros for the energy sector.
The Acting Ambassador of the European Union to Tanzania Hon. Emilio Rossetti, said that in addition to the 26 million Euros signed, the Union will provide an additional 4 million Euros to build the capacity of the Tanzania Electricity Supply Corporation (TANESCO) and make the amount provided by the EU through the Organization the Agence Française de Développement (AFD) to reach 30 million Euros equivalent to 84 billion shillings.
He stressed that the European Union recognizes the great efforts made by the Fifth Phase Government of Hon. President Dr. John Pombe Magufuli and that the European Union will continue to support its efforts to bring development to the people in various economic and social fields.