THE government is set to save 31.2bn/- that would be used to buy 21MW of electricity from Uganda in the next two years upon the completion of the 220 kilovolt Benaco-Kyaka transmission line project in Kagera region.

Gissima Nyamo-Hanga, managing director for the Tanzania Electric Supply Co. Ltd (Tanesco) said in Dar es Salaam yesterday that the corporate entity has been spending 2.6bn/- a month to purchase power from the neighbouring country.

He made this disclosure soon after signing a consultancy service agreement for the supervision and management of the proposed 220kV transmission line, with M/s. Shaker Consultancy Group, an Egyptian firm.

It shall work in collaboration with an electricity project development company (PDC) of Saudi Arabia, where costs including the transmission line, substation and rural electrification is pegged at $135.4m, he stated.

The government has extended $2.6m for the project slated to commence January next year, taking two calendar years, he said, elaborating that the OPEC Fund for International Development will extend $60m.

The Abu Dhabi Fund for Development is expected to place $30m while the Saudi Fund for Development has expressed intention to commit $13m, he specified.

Kagera is among few regions yet to be fully integrated into the national grid, with the project set to benefit Kyerwa, Karagwe and Misenyi districts, as well as the rural and urban districts of Bukoba, he said, pointing out that the 220kV transmission line from Benaco substation in Ngara district to the Kyaka substation in Misenyi district covering 166.17km.

A new substation at Benaco will be built and Kyaka substation being extended, he affirmed, describing the project as vital for enhancing the reliability and security of power supply in the region.

The targeted districts have been depending on a 132kV transmission line from Uganda where 21MW was being supplied each month, he said, explaining that the consultant is tasked with preparing tender documents for the works.

He will also help to oversee procurement processes for the works contractors in cooperation with Tanesco up to the end of this year, he stated.

Once completed, the new supply of power is expected to catalyse economic development in the Lake Zone regions by delivering reliable electricity from the national grid.

“The transmission line covering 613 kilometres shall be set up to generate 33 kilovolts to be used to connect 3,226 households in Ngara and Misenyi," he said.

Dr Ismail Shaker, the group’s CEO, said that the company has been operational in Tanzania for nine year, having eight branches in Africa.

“This is the seventh project we are executing in Tanzania. We are looking forward to accomplishing the project within the agreed period,” he added.