Gridworks Signs MoU for Tanzania Transmission Project
The UK firm will work with India’s Larsen & Toubro Construction.
The UK’s Gridworks has announced it intends to “develop and invest” in the North East Grid transmission project in Tanzania.
It will work with India’s Larsen & Toubro Construction and Tanzania Electric Supply Company (TANESCO) to improve the transmission network connecting the central, coastal and northeastern regions of the country.
The three parties signed a memorandum of understanding (MoU) on 27 July.
Today, 🇬🇧 investor in Africa’s electricity networks @GridworksLLP has signed an MoU w @tanescoyetutz to develop & invest in North East Grid transmission project in Arusha & Tanga 🇹🇿🤝— UK in Tanzania (@UKinTanzania) July 27, 2023
This aims to support 🇹🇿’s increase in electricity production & meet its population demand ⚡️ pic.twitter.com/No3NaN4Fnu
The North East Grid project is being developed in phases. Gridworks will work on the phase that involves the installation of a 400kV transmission line from Dodoma to Chalinze, a 400kV link from Chalinze to Segera and a 220kV line from Segera to Tanga. It will also develop new substations at Segera and Tanga and upgrade the Dodoma substation.
The project aims to increase the reliability of the grid, connect demand centres, and provide electricity access in unconnected regions. The grid extension will also support interconnectivity with neighbouring Kenya.
According to Gridworks, 6,200MW of new generation capacity is planned be added to Tanzania’s grid by the end of the decade. The transmission projects are necessary to evacuate this power.
More than 9,000km of high-voltage lines, 12,090MVA of transformer capacity and 56 new substations are due to be added over the next 10 years.
“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," said Simon Hodson, chief executive officer of Gridworks.
“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.”
Gridworks is wholly owned by British International Investment, the UK government’s development finance institution.
ConstructAfrica will be publishing its Tanzania Construction Market Report in August. For more information, please email firstname.lastname@example.org.
Photo: MoU signing (Source: @UKinTanzania)