AfrElec: World Bank commits additional $335mn for electricity grid extension in Tanzania

The World Bank has approved $335mn of financing support to facilitate an additional 1mn last-mile grid connections in Tanzania, East Africa's second-largest economy, the bank said in a statement.

The new credit financing by International Development Association (IDA) to the Tanzania Rural Electrification Expansion Programme (TREEP) follows another $209mn for the same programme approved in May 2016. It is also co-financed by a grant from the Energy Sector Management Assistance Program (ESMAP) with a $6mn contribution.

To meet rapidly growing energy demand, Tanzania is currently implementing the National Rural Electrification Programme through which it aims to increase the population’s electricity access to 50% by 2025 and to at least 75% by 2033.

The funds are expected to add over 1mn connections including 8,500 education facilities and 2,500 healthcare facilities, as well as provide renewable energy options and clean cooking solutions to rural households, it said.

Under the programme framework, the fund will help in the implementation of the National Renewable Energy Strategy and the piloting of a Solar Home System (SHS) and clean cooking results-based financing programmes for rural households, the bank said.