- 400 kV double circuit line to connect Uganda and Tanzania across 810 km.
- US$650m project backed by multilateral and bilateral lenders.
- 30% local labour requirement introduced for Uganda segment.
Procurement for the 810 km Uganda Tanzania Interconnector Project has officially commenced in February 2026, marking a major milestone for regional grid integration under the Eastern Africa Power Pool.
The 400 kV double circuit transmission line is designed to boost cross border electricity trade and enhance system reliability across East Africa. The project will link Uganda and Tanzania through two primary segments with a combined estimated cost of US$650m.
The Ugandan section will span 260 km from Wobulenzi to Mutukula via Masaka, with an estimated investment of US$250m. The Tanzanian segment will cover approximately 550 km from Mutukula to Shinyanga at a projected cost of US$400m.
Implementation is being led by Uganda Electricity Transmission Company and Tanzania Electric Supply Company, the respective national transmission utilities.
Early market engagement is already under way. On 5 February 2026, Uganda Electricity Transmission Company hosted a pre bid meeting in Kampala to assess market readiness and brief prospective bidders on updated procurement regulations issued by the World Bank.
The tender process is being conducted through International Competitive Procurement using a Request for Bids procedure, in line with multilateral financing requirements. On the Ugandan side, new regulations mandate a minimum of 30% local labour participation, reinforcing domestic capacity development and skills transfer.
Financing for the project is being structured through a consortium of international partners. The World Bank, through its concessional lending arm, the International Development Association, is expected to approve a US$250m soft loan for Uganda and US$194m for Tanzania in late March 2026.
Additional financing for the Tanzanian segment includes US$90m from the Japan International Cooperation Agency, US$82m from Agence Française de Développement and US$35m from the European Union.
Once completed, the interconnector is expected to unlock greater electricity trade between the two countries, improve grid stability and support long term energy security objectives across the Eastern Africa Power Pool.
Author: Bryan Groenendaal
