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Tanzania signs funding deal for 8-MW Malagarasi

Tanzania Electric Supply Co. (TANESCO) has signed a five-year agreement worth US$206.5 million for development of the 8-MW Malagarasi hydroelectric project and improvement of electricity transmission and distribution.

The agreement, reported by local media, is between the state-owned utility and U.S.-based Millennium Challenge Corp., part of a US$698 million grant that the presidents of Tanzania and United States approved in February. (HNN 9/20/07)

Local media reported the money would be disbursed beginning in October and would go towards developing the hydroelectric project on the Malagarasi River as well as transmission and distribution systems in five regions in mainland Tanzania. The money also would be used to lay a second undersea power cable to Zanzibar.

TANESCO says it has plans to connect 100,000 new customers to the grid in 2008 and 2009.

In July, the government named four consultant groups to provide administrative services to a roads, power, and water supply program including construction of Malagarasi. (HNN 7/18/08)

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