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The World Bank has sanctioned US$121.5mn for Tanzania to help the east African country facilitate its power sector reforms and strengthen its capacity for optimal use of its gas reserves
The World Bank board of executive directors has approved the financial support for reducing cost of power supply and promotion of private sector for increased participation in both power and gas sectors.
World Bank country director for Tanzania Philippe Dongier said, “With these operations, the World Bank will help to place the power sector on a more sustainable path, and will help create foundations to maximise benefits of natural gas reserves for all Tanzanians.”
The power and gas sector projects will include a development policy for operation in the Tanzania Electric Power Supply Company (TANESCO), which will receive US$100mn to address its financial gap and help expand power generation using natural gas by engaging public-private partnership.
Commenting on the support, the minister for energy and minerals, Sospeter Mhongo, said Tanzania was committed to reducing cost of power supply by expanding the use of domestic natural gas in electricity generation and promoting the private sector participation in the power sector.
Mhongo commented, “We are taking concrete steps to strengthen power sector governance and improving and implementation capacities for bringing more electricity into homes and businesses across Tanzania.”