Tanzania builds grid interconnector to Zambia to mitigate power crisis

Tanzania's vice prime minister announced at the Singapore International Energy Week on Monday that Tanzania will build a grid-interconnector with Zambia in order to assist in reducing a power crisis caused by a drought.

"We already have interconnectors in place with our neighbours Burundi and Kenya, but now we're putting up one with Zambia. This will allow us to help our neighbor, Zambia, who is suffering from a severe drought," said Doto Biteko. He is also the Energy Minister.

"Tanzania is a member of Eastern African Power Pool... We have a larger market, where we can sell electricity to our neighbouring nations whenever we have it."

He said that the development of the grid-interconnector would take 36 months. Work began last month.

Kenya, Tanzania, and Zambia announced in 2014 they would spend $1.4 billion by 2018 to connect their power grids and create a regional pool of electricity for trading.

In relation to the $42 billion project of Tanzania LNG - a liquefied gas export plant - Biteko stated that the government was in negotiations with partners and operators for the finalisation of the host government agreement. However, she did not provide a timetable as to when the negotiations would be concluded.

Tanzania LNG

delayed

By proposed changes by the government to a financial deal reached last year. According to a government spokesperson, the amendments proposed to the Host Government Agreement are intended to ensure both parties benefit equally from the deal.

Exxon Mobil and Pavilion Energy are joint operators, while Tanzania's national oil firm TPDC, Exxon Mobil and Shell are partners.

(source: Reuters)