Economy

Tanzania PM launches Sh50bn Mkata power substation, transmission project in Tanga

He urged contractors to adhere strictly to quality standards and timelines to ensure the project is completed as scheduled

Tanga. Prime Minister Mwigulu Nchemba has laid the foundation stone for the construction of the Mkata power substation and a 45-kilometre electricity transmission line in Tanga, marking a major milestone in efforts to strengthen the National Grid and expand access to reliable power in northern Tanzania.

The project involves the construction of a 2x60MVA 132/33kV power substation at Mkata, alongside a 33kV transmission line stretching from the substation to Kwamsisi village.

It is fully financed by the Government of the United Republic of Tanzania at a total cost of Sh49.89 billion.

Of this amount, Sh44.14 billion has been allocated for the construction of the power substation, while Sh5.75 billion will be spent on the transmission line.

The investment is part of the government’s broader programme to reinforce the National Grid and enhance the stability and reliability of electricity supply across key economic corridors.

Speaking during the groundbreaking ceremony, the Prime Minister said the project reflects the government’s firm commitment to expanding access to modern energy and supporting productive sectors of the economy.

He said reliable electricity is central to industrial growth, social development, and the improvement of public services.

He noted that once completed, the project would significantly improve power supply in Handeni and Kilindi districts, which have for years faced intermittent electricity supply and limited grid capacity.

The Prime Minister said the new substation would reduce power losses, stabilise voltage levels, and ensure a consistent flow of electricity to households, businesses, and public institutions.

He added that the project would also enhance the operational efficiency of the graphite mines in Kwamsisi village, which require dependable energy to sustain production and attract further investment.

He urged contractors to adhere strictly to quality standards and timelines to ensure the project is completed as scheduled.

He also called on local authorities and communities to cooperate fully with project implementers to facilitate smooth execution.

Energy ministry officials said the Mkata project forms part of a wider national strategy aimed at modernising power infrastructure, increasing generation and transmission capacity, and supporting Tanzania’s long-term development agenda.

They said the strengthened grid would open new opportunities for industrial development, agricultural processing, and small-scale enterprises, particularly in rural areas, while also improving the delivery of social services such as healthcare, education, and water supply.

Local leaders welcomed the project, describing it as a transformative investment that would unlock economic potential and improve living standards.

Residents expressed optimism that the improved electricity supply would stimulate business growth, create employment, and enhance overall welfare in the region.

Construction works are expected to commence immediately, with completion scheduled within the planned timeframe, subject to favourable conditions and steady funding flows.

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