Procurement Opens for 810 km Uganda-Tanzania Interconnector to Strengthen Regional Power Trade
By Green Building Africa – Net Carbon Zero Buildings and Cities — February 24, 2026
Image for illustration purposes only. Image credit: Charles HB Mercer via Shutterstock
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$650 million.
The Ugandan section will span 260 km from Wobulenzi to Mutukula via Masaka, with an estimated investment of US$250 million. The Tanzanian segment will cover approximately 550 km from Mutukula to Shinyanga at a projected cost of US$400 million.
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$250 million soft loan for Uganda and US$194 million for Tanzania in late March 2026.
Additional financing for the Tanzanian segment includes US$90 million from the Japan International Cooperation Agency**, **US$82 million from Agence Française de Développement and US$35 million 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.
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