US gives $45 mln funding for Tanzania power project

DAR ES SALAAM, Aug 26 (BestGrowthStock) – The United States will
provide financing of $45 million for a power project in mainland
Tanzania and Zanzibar, the U.S. embassy said in a statement on
Thursday.

The funding is part of a $698 million grant to the east
African country by the United States in 2008 under the
Millennium Challenge Corp. to fund water, energy and
infrastructure.

A total of $206 million has been allocated for energy
projects.

“The work involves the construction and rehabilitation of 24
power substations throughout the mainland and on Unguja (the
main island of the Zanzibar archipelago),” said the statement.

The financing agreement is scheduled to be signed in
Tanzania’s commercial capital, Dar es Salaam, on Friday.

The contract has been awarded to a joint venture between
U.S. firm Symbion Power LLC and French company Areva (CEPFi.PA: ).

The agreement will finance the manufacture and installation
of a new 100 megawatt submarine power cable between mainland
Tanzania and Zanzibar, according to the U.S. embassy.

In April, the United States and Zanzibar signed a $28
million package to finance a power project aimed at alleviating
frequent electricity outages in the semi-autonomous islands.

Erratic power supply is hurting the economy of the Indian
Ocean archipelago, which relies on tourism for more than 25
percent of its gross domestic product and 70 percent of its
foreign exchange.

Electrical power was restored to Zanzibar on March 8, three
months after the islands were plunged into darkness.
(Reporting by Fumbuka Ng’wanakilala; Editing by Jane Baird)

US gives $45 mln funding for Tanzania power project