Development cooperation ,27.11.2014

Improving the electric power supply reliability in Dar es Salaam


The objective of the project is to support sustainable economic and social development in Tanzania by strengthening the power distribution network in Dar es Salaam through rehabilitation and provision of a SCADA system. The project will improve the reliability of power supply and reduce technical losses in the power distribution network. The distribution network is overloaded and over-aged, which increases losses and leads to constant operational shutdowns. The reliability of power supply in Dar es Salaam is important because half of Tanzania’s GDP comes from the capital area where the growth of electricity consumption is highest. Without well operating power supply the development prospects of the private sector remain weak, which will have a negative impact on the national economy. The reliability of power supply will have impact on the operations of the companies and industries, public sector institutions (schools, hospitals and health centers) and on daily lives of individuals. One important beneficiary group are small entrepreneurs, many of which are women. Inefficient power distribution, with an obsolete system that causes constant power cuts is also harmful to the environment. Improvement of power network will also decrease the use of alternative backup energy sources e.g. polluting diesel generators. Tanesco (Tanzanian government’s power supply company) is in charge of the project. Hifab Oy provides consultancy services for the project and Eltel Group Oy is the contractor. The project’s planning phase started in 2010 and contract work in 2013. The contract work is a bit delayed. It is estimated to be completed by the end of 2015. Technical equipment has been manufactured and their factory tests completed. The control centre building is under construction and underground cables of the new transmission and distribution network are being installed. Tanesco’s personnel has been trained for the tasks of the substations and centralized power system control. The contract work for the final phase of the project includes installation of cables, construction of control center and substations, installation and commissioning of equipment. The training of Tanesco personnel will continue till the completion of the contract. Finland’s financial contribution of the original budget of the project is 25 million €. For the completion of the project there is need for additional financing, out of which Finland ‘s share is 1,5 million €.

Funding decision  27.11.2014

1 500 000 €

Field of activity

  • Electrical transmission/ distribution 100%



Code for the object of funding