Dar es Salaam, August 26, 2010 — The U.S. will provide $45 million financing for a power project in mainland Tanzania and Zanzibar.
A total of $206 million has been allocated for energy projects.
The agreement will finance the manufacture and installation of a new 100-MW submarine power cable between mainland Tanzania and Zanzibar.
The funding is part of a $698 million grant to the east African country by the U.S. in 2008 under the Millennium Challenge Corp. to fund water, energy and infrastructure.
The work involves the construction and rehabilitation of 24 power substations throughout the mainland and on Unguja, which is the main island of the Zanzibar archipelago.
The contract has been awarded to a joint venture between U.S. firm Symbion Power and French company Areva.
In April, the U.S. and Zanzibar signed a $28 million package to finance a power project aimed at alleviating frequent electricity outages in the semi-autonomous islands.