Kenya, Tanzania & Zambia sign power MOU - CNBC Africa

Kenya, Tanzania & Zambia sign power MOU

East Africa

by Elayne Wangalwa 0

Kenya, Tanzania and Zambia have signed a power interconnector memorandum of understanding (MOU) project.

The inter-governmental agreement signed on 15 December in order to stimulate investment in power generation is worth 1.2 billion US dollars. The agreement sets out principles that underline the relationship amongst the three governments. 

The power connector project will link the East African Power Pool (EAPP) to the Southern African Power Pool (SAPP) and promote electricity trade, boost trade and security of electricity supply. Implementation of the project will also foster regional integration in the three states by consolidating work relations through supply mechanism.

The signing of the MOU was witnessed by the European Union (EU), COMESA, the Norwegian Fund, World Bank, African Development Bank and China Development bank.

In October, the three countries signed a framework agreement to jump start the long awaited jointed power connector project.

Earlier in the year, the Zambian government announced it will commission power projects in order to boost generation capacity. The country currently has a power shortage of about 250 MegaWatts demand for power in Zambia grows steadily.

According to Zambia’s Energy Regulatory Board, the South African country has potential hydro power capacity of about 6,000 MW.

In Tanzania, the country aims to double its power production to 3,000MW by 2016 from 1,500 MW, against a peak power demand of 900 MW. The African Development Bank (AfDB) financed an electricity project in the East African country by injecting 50 million US dollars so as to aid the country achieve this plans.

Meanwhile, Kenya is also looking at increasing its national power output to 5,000 megawatt by 2016 in order to spur industrial growth. The 5,000MW power policy will help meet Kenya’s growing demand for electricity through geothermal sources in order to transform it into an industrialised country. The Kenyan government said that it will spend about 2 billion US dollars in the medium term to upgrade its power distribution systems.