The United States Government, through the Millennium Challenge
Corporation (MCC), agreed on November 14, 2014, to provide up to $9.78 million for the
development of high-impact investment projects in Tanzania’s energy sector. United States
Ambassador Mark B. Childress presided over the signing of the grant agreement at the Ministry
of Finance in Dar es Salaam. The agreement was signed by MCC’s Vice President of Compact
Operations, Kamran Khan, and Tanzania’s Minister of Finance, Saada Mkuya Salum.
The grant agreement builds on a strong partnership between the United States and Tanzania.
Between 2008 and 2013, MCC implemented a compact of investment projects in water, roads,
and electric power throughout Tanzania totaling $698 million. That compact program led to the
construction of over 3,000 km of power lines, 450 km of trunk roads, two water treatment plants,
and an airport runway.
Given its successful implementation of the first compact program – the largest in MCC’s
history – MCC designated Tanzania eligible to develop a second compact program with a
focus on the power sector, including investments in infrastructure as well as policy, regulatory
and institutional reforms. Through the grant agreement signed today, Tanzania will mobilize
consultants to undertake detailed feasibility studies and other preparatory work on project ideas
that are most likely to stimulate long-term economic growth.
The studies will allow Tanzania
to fully develop projects to reform the power sector; improve the technical, financial, and
operational performance of the Tanzania Electricity Supply Company Ltd. (TANESCO) and the
Zanzibar Electricity Corporation (ZECO); and expand access to electric power in rural areas.
These proposed projects are expected to form the basis of a second MCC compact of investments
between the United States and Tanzania.
This project development grant marks an important milestone in the development of the
second compact program. The grant also marks a significant commitment toward the goals of
Power Africa, the U.S. Government initiative to double the number of people with access to
power in Africa through collaboration with African governments, the private sector, and other
The Millennium Challenge Corporation (MCC) is a United States Government agency that
provides assistance to developing countries. MCC is based on the principle that aid is most
effective when it reinforces good governance, economic freedom and investments in people that
promote economic growth and the elimination of poverty.
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U.S. Ambassador Mark Childress (center) presiding over the signing of a grant agreement between the U.S. Government’s Millennium Challenge Corporation (MCC) and the Ministry of Finance in Dar es Salaam, while Vice President of MCC (Compact Operations), Mr. Kamran Khan (left) exchanges the grant agreement documents with the Minister of Finance, Ms. Saada Salum Mkuya. The grants total $9.78 million for the development of high-impact investment projects in Tanzania’s energy sector. (Photo by courtesy of U.S. Embassy).
Good to know about project funds hope local consultants are eligible and would access almost all the funds to undertake the feasibility studies.
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