Total Project Cost
Investment Required
Stakeholders
Countries
Project Overview
Description
The Masaka - Mwanza Transmission Line Project involves the construction of a 298 km 220kV transmission line connecting Masaka in Uganda with Mwanza in Tanzania. This strategic corridor is part of the East African Power Pool (EAPP) infrastructure development plan to enhance electricity trade between the East African Community (EAC) member states. The project will create a critical link in the high voltage transmission backbone around Lake Victoria, facilitating power exchange and supporting regional economic integration.
Objectives
The interconnector aims to: (i) enhance electricity trade between Uganda, Tanzania, and the broader East African region; (ii) improve security and reliability of electricity supply for both countries; (iii) foster economic development along the corridor; (iv) facilitate EAPP and Southern African Power Pool (SAPP) integration; (v) enable access to various generation resources including hydro potential from DRC and Ethiopia, and geothermal potential from Kenya; and (vi) reduce overall system losses and operational costs through coordinated power exchange.
Strategic Importance
The Masaka-Mwanza Transmission Line Project represents a cornerstone of the regional power integration strategy endorsed by the East African Community (EAC). This transmission corridor is strategically important as it completes a critical link in the high voltage transmission backbone around Lake Victoria, creating a robust regional grid. The region traversed by the interconnector has significant generation resources under development, including Rusumo Falls HPP (80 MW), Kakono HPP (87 MW), Nsongezi HPP (35 MW), and Kikagati HPP (14 MW), which will benefit from improved evacuation infrastructure. By facilitating power trade between countries with complementary energy resources, the project will enhance energy security, reduce generation reserve requirements, optimize system operation costs, and ultimately support economic development and industrialization in the region. The project aligns with both national development plans and regional integration frameworks under the EAC and EAPP.
Technical Specifications
Technology & Design
The transmission line will utilize self-supporting lattice steel towers (approximately 700-750 towers for the 298 km route) with ACSR conductors or equivalent. The line will be designed for 220kV operation initially, with capability for potential future upgrade to 400kV through appropriate tower design. Innovations include composite insulators for improved performance in polluted environments, vibration dampers for conductor protection, and OPGW for communication and control capabilities. Substations will employ modern gas-insulated switchgear (GIS) technology where appropriate.
Capacity & Size
The 298 km 220kV transmission line will have a transfer capacity of approximately 300-400 MVA, suitable for projected power exchange requirements. The project includes substation extensions at Masaka (Uganda) and Mwanza (Tanzania), with associated reactive power compensation equipment to ensure voltage stability.
Technical Details
Technical specifications include: (i) Transmission line: 220kV double circuit, self-supporting lattice steel towers, ACSR "Zebra" or equivalent conductor, 2 ground wires including one OPGW with 24-48 fibers; (ii) Right-of-way width: 40 meters; (iii) Insulation level: 1050 kV BIL; (iv) Substation equipment rated for 245kV nominal voltage, 40kA fault level; (v) SCADA and communication systems compatible with existing national and regional infrastructure; (vi) Design in accordance with relevant IEC standards and national grid codes of both countries.
Development, Implementation & Financial Details
Development Timeline
The project development timeline includes: (i) completion of updated feasibility studies (2018-2022); (ii) project structuring and financing arrangements (2022-2024); (iii) procurement and contractor mobilization (2024-2025); (iv) construction and commissioning (2025-2028); and (v) commercial operation by 2029. Currently, the project is in the project structuring phase.
Latest Implementation Updates
UPDATED2025-07-24: World Bank committed to finance the 400 kV Masaka–Mwanza interconnector (~USD 325 M) – https://dailynews.co.tz/wb-to-fund-uganda-tz-power-line/
2025-07-24 — World Bank commits to finance the 400 kV Masaka–Mwanza interconnector, enabling design/procurement steps toward construction and regional power trade. [https://dailynews.co.tz/wb-to-fund-uganda-tz-power-line/]
Financing Structure
The project will utilize a blended financing approach combining: (i) concessional loans from multilateral development banks (primarily World Bank as lead financier, with participation from AfDB, EIB, and KfW); (ii) potential grant components for technical assistance and environmental/social mitigation measures; and (iii) counterpart funding from the governments of Uganda and Tanzania. The specific proportions and terms will be finalized during the project structuring phase.
Capital Structure
Based on preliminary financing discussions, the capital structure is expected to include approximately 80-85% debt financing from international financial institutions and 15-20% equity contributions from the national utilities and governments of Uganda and Tanzania.
Project Timeline
Start Date
June 2018
Expected Completion
December 2028
Development Timeline
The project development timeline includes: (i) completion of updated feasibility studies (2018-2022); (ii) project structuring and financing arrangements (2022-2024); (iii) procurement and contractor mobilization (2024-2025); (iv) construction and commissioning (2025-2028); and (v) commercial operation by 2029. Currently, the project is in the project structuring phase.
Project Status History
Status 2020
Feasibility
Status 2022
Feasibility
Status 2024
Structuring
Additional Project Details
Construction Timeline
The construction phase is expected to span approximately 36 months from contractor mobilization to commissioning, including: (i) detailed design and approval (6 months); (ii) procurement of major materials (12 months); (iii) foundation works and tower erection (18 months); (iv) conductor stringing and substation works (12 months); and (v) testing and commissioning (6 months). The construction schedule includes appropriate overlapping of activities to optimize the timeline.
Legal & Financial Advisors
Project preparation studies supported by technical consultants including SNC Lavalin and CESI. Legal and financial advisory services currently being procured.
Market Analysis
Market Analysis
Current electricity trade in the region is limited by infrastructure constraints, with most countries operating largely isolated systems despite the economic benefits of integration. Demand analysis indicates significant potential for cost-effective power exchange, particularly between hydropower-dominated systems in Uganda and thermal/mixed systems in Tanzania, providing seasonal and daily complementarity. The project will remove a critical infrastructure bottleneck in the regional power market development.
Market Demand
The project will directly serve approximately 15 million people in the wider reaches of the transmission line corridor. Load forecast studies indicate growing demand for electricity in both countries (6-8% annually), with the interconnector facilitating more efficient supply to meet this demand. The transmission capacity is designed to accommodate projected trade volumes over a 20-30 year horizon.
Key Stakeholders
Project Sponsor
Ministry of Energy and Mineral Development (Uganda), Ministry of Energy (Tanzania), with implementation support from UETCL and TANESCO
Key Parties
Ministry of Energy and Mineral Development (Uganda), Ministry of Energy (Tanzania), Uganda Electricity Transmission Company Limited (UETCL), Tanzania Electric Supply Company Limited (TANESCO), East African Power Pool (EAPP), East African Community (EAC) Secretariat
Investors
World Bank (lead financier), African Development Bank (AfDB), European Investment Bank (EIB), KfW Development Bank, Government of Uganda, Government of Tanzania
Contractors & Operators
To be determined through international competitive bidding following project structuring and financing arrangements
Risk Assessment
General Risk Assessment
Key risks identified include: (i) Land acquisition and resettlement complexities, particularly in densely populated areas; (ii) Environmental sensitivities associated with transmission line routing; (iii) Cross-border coordination requirements for harmonized implementation; (iv) Potential delays in financing arrangements; and (v) Technical implementation challenges including terrain difficulties. Risk mitigation measures are being developed for each category, with particular emphasis on comprehensive stakeholder engagement and robust project management frameworks.
Regulatory Risks
Regulatory risks include: (i) Need for harmonization of technical standards and grid codes between the two countries; (ii) Requirements for coordinated operational protocols; (iii) Development of appropriate wheeling charge methodologies; and (iv) Establishment of clear institutional arrangements for cross-border power trading. These risks are being addressed through dedicated working groups under the EAPP framework and direct bilateral engagement between regulatory authorities.
Impact Assessment
Environmental Impact
The project passes through environmentally sensitive areas including Burigi Game Reserve and Kimisi Game Reserve. Key environmental impacts include habitat fragmentation, avian collision risks, vegetation clearing within the right-of-way, and potential soil erosion during construction. Comprehensive mitigation measures are being developed in the updated ESIA, including optimized route selection, bird diverters in sensitive areas, erosion control measures, and ecosystem restoration approaches.
Social Impact
Social impacts include land acquisition affecting approximately 2,000-2,500 households, with both physical and economic displacement. The project will create approximately 1,500-2,000 jobs during construction, with additional indirect economic benefits for local communities. Comprehensive RAPs will ensure fair compensation and livelihood restoration, while benefit-sharing mechanisms such as rural electrification components along the corridor will enhance positive impacts.
Investment Opportunities
Private Sector Opportunities
The project presents several opportunities for private sector participation, including: (i) Construction contracts for transmission lines and substations; (ii) Supply of materials and equipment (towers, conductors, insulators, substation equipment); (iii) Consulting services for design, supervision, and management; (iv) Operations and maintenance services through performance-based contracts; and (v) Potential for fiber optic communication services utilizing the OPGW infrastructure.
Next Steps & Agreements
Next Steps
Key next steps include: (i) completion of updated Environmental and Social Impact Assessment (ESIA) and Resettlement Action Plan (RAP); (ii) finalization of transmission line route alignment; (iii) securing of financing commitments; (iv) establishment of project implementation arrangements including Project Implementation Unit (PIU); and (v) preparation of bidding documents for EPC contracts.
Offtake Agreements
The project requires coordination between the transmission utilities of Uganda and Tanzania through a Transmission Connection Agreement (TCA) that will govern technical, operational, and commercial aspects of the interconnection. This will be supported by broader regional frameworks for power trading through the Eastern Africa Power Pool (EAPP).
Contact Information
Eng. Ziria Tibalwa Waako, CEO, Electricity Regulatory Authority (Uganda), Email: info@era.go.ug; Eng. Maharage Chande, Managing Director, TANESCO, Email: md@tanesco.co.tz; Dr. Stephen Dihwa, Executive Director, EAPP, Email: info@eappool.org
