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World Bank commits $335m for

grid extension in Tanzania

TANZANIA THE World Bank has approved $335mn of Renewable Energy Strategy and the piloting of
financing support to facilitate an additional a Solar Home System (SHSs) and clean cook-
1mn last-mile grid connections in Tanzania, East ing results-based financing programs for rural
Africa’s second-largest economy, the bank said households, the bank said.
in a statement. “Scaling up access to modern forms of energy
The new credit financing by International is an important component of the Government
Development Association (IDA) to the Tanza- of Tanzania’s long-term economic growth plan.
nia Rural Electrification Expansion Program We are pleased that our support to this objec-
(TREEP) follows another $209mn for the same tive over the past five years helped to provide
program approved in May 2016. It is also co-fi- electricity access to over four and a half million
nanced by a grant from the Energy Sector Man- people including 5,900 education facilities, 1,664
agement Assistance Program (ESMAP) with a healthcare facilities, and 14,316 business enter-
$6mn contribution. prises,” Preeti Arora, acting World Bank Coun-
To meet rapidly increasing energy demand, try Director said.
Tanzania is currently implementing the National “The historical emphasis on backbone grid
Rural Electrification Program through which extensions resulted in the national grid reaching
it aims to increase the population’s electricity 78% of villages, but remained out of connection
access to 50% by 2025 and to at least 75% by distance for most households. With this addi-
2033. tional financing, TREEP is expected to electrify
The funds are expected to add over 1mn 15% of the current off-grid population which
connections including 8,500 education facilities will increase the access rate in Tanzania from
and 2,500 healthcare facilities, as well as provide 38% to 45%,’’ Jenny Hasselsten, World Bank Sen-
renewable energy options and clean cooking ior Energy Economist and Task Team Leader for
solutions to rural households, it said TREEP added.™
Under the program framework, the fund
will help in the implementation of the National

P6 www. NEWSBASE .com Week 39 29•September•2022