China Eximbank agrees in principle to provide $588.7 million buyer's credit loan for 400kV North East Grid Project

In 2016, China Eximbank agreed -- at least in principle -- to provide a loan worth approximately $588,795,000 to the Government of Tanzania for the 400kV North East Grid Project. The borrowing terms of the loan are unknown. However, it is known that the borrower was expected to use the proceeds of the loan to finance 85% of the cost of a $692.7 million commercial (EPC) contract between TANESCO and Tebian Electric Apparatus (TBEA or 特变电工), which was signed in June 2012. The Government of Tanzania was expected to provide responsible the remaining 15%. The project scope involved the construction of a 682 kilometer long 400kV transmission line from Kinyerezi to Arusha via Chalinze and Segera; the construction of 220kV transmission lines from Kibaha to Bagamoyo and from Segera to Tanga; and the construction of power stations in Chalinze, Segera, Kange and Zinga. Northwest Electric Power Design Institute Co., Ltd. of China Power Engineering Consulting Group signed the final survey design contract on March 19, 2016. TBEA was expected to be the contractor responsible for project implementation and there were some preliminary signs of implementation by TBEA in 2018. However, as of March 2023, AidData had not identified any firm evidence that a loan agreement with China Eximbank was ever finalized. In 2012, China Eximbank financed a natural gas pipeline project (as captured via Project ID#59733 and ID#59752) that would make Dar es Salaam the country's largest source of energy. The Government of Tanzania pursued the 400kV North East Grid Project in order to increase the capacity for distributing electricity from Dar es Salaam.

Additional details

1. This project is also known as the North East Power Transmission Lines Project and the North East Power Transmission Line 400kV Dar-Chalinze-Arusha Project. The Chinese project title is 坦桑尼亚东北电网 or 坦桑尼亚400千伏输变电线路东北电网 or 坦桑尼亚东北电网项目 or 东北电网项目 or 坦桑尼亚400千伏输变电线路项目.

Number of official sources

15

Number of total sources

18