Tanzania - Power Sector Reform and Governance Support Programme (PSRGSP)

Project Summary

Approval Date	20 May 2015
Signature Date	27 May 2015
Planned Completion Date	30 Nov 2015
Last Disbursement Planned Date	30 Nov 2015
Sovereign / Non-Sovereign	Sovereign
Sector	Multi-Sector
DAC Sector Code	11330
Environmental Category	3
Commitment	U.A 50,000,000
Status	Completion

Project General Description

The proposed project is the first phase of the Power Sector Reform and Governance Support Programme (PSRGSP) in Tanzania. The PSRGSP is designed as a programmatic series of three consecutive general budget support operations (GBS) covering the three-year period 2014/15-2016/17, for a total indicative financing package of UA 100 million. The programme is a response to a request from GOT, dated March 2013, for the Bank to support its energy sector and PFM reform agenda. It builds on the Bank’s earlier Governance and Economic Competitiveness Support Programme (GECSP) Supplemental financing operation, approved by the Board in December 2013, for an amount of UA 38.41 million. The programme, has three components: (i) Strengthening the institutional framework and operational efficiency of the power sector; (ii) Enhancing competition and private sector participation in the power sector; and (iii) Improving governance through PFM reforms, with particular emphasis on strengthening procurement systems and reducing fiscal risks posed by parastatals.

Project Objectives

The proposed operation aims at promoting inclusive growth and enhanced competitiveness through power sector reform and improved economic and financial governance. It aims to achieve this by addressing a major development challenge – the lack of adequate, reliable and affordable energy supply. The operational policy objective is to support on-going and planned GOT efforts to improve the operational efficiency, competitiveness and sustainability of the energy sector. It also aims to promote greater efficiency and effectiveness of the country’s PFM system, mainly by addressing weaknesses in procurement and debt management.

Beneficiaries

The direct beneficiaries of the programme include the Ministry of Finance, the Ministry of Energy and Minerals (Energy Division), TANESCO and EWURA. The Public Procurement Regulatory Authority (PPRA) will also benefit through support for improving public procurement. In addition, the Tanzanian people will benefit from significant improvements in electricity service delivery and improved access and lower tariffs in the medium to long term due to improved energy mix and elimination of more expensive emergency power. These benefits will impact particularly the poor and will, therefore, have positive social and gender pay-offs.

Participating Organization

Funding

African Development Fund

Implementing

GOVERNMENT OF TANZANIA

Information

IATI identifier	46002-P-TZ-K00-014
Last Update	26 Jan 2023

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Contact Details

Name	NKULIKIYIMFURA Francois
Email	f.nkulikiyimfura@afdb.org

Geographic Location

Country	Tanzania, United Republic of

Coordinates	Location Name
-6.82349 39.26951	Dar es Salaam

Project Classification

Finance Type	N/A
Flow Type	ODA
Aid Type	N/A

Commitments

U.A 50,000,000

African Development Fund

U.A 50,000,000

Disbursements

Repayments (Interest & Loan)

Document Type	Language	Document
Evaluation Report	en	PN10819 SR EN
Project Completion Report	en	PR10837 SR EN
Appraisal report	en	Tanzania AR- Power Sector Reform and Governance Support Programme PSRGSP
Appraisal report	fr	Tanzanie RE - Programme dappui à la réforme et à la gouvernance du secteur de lélectricité PSRGSP
Project Completion Report	en	viewer
Project Completion Report	fr	viewer

Indicator	Indicator Measure	Target Year	Target Value	Actual Year	Actual Value
Percentage of population with connection to electricity	%	2015	32	2020	67
Improved revenue collection by TANESCO	Tanzanian shillings bilion	2015	1613,14	2020	1762
Share of total electricity supplied through non-emergency sources	%	2015	100	2020	100
Average compliance of Procuring entities with the new Public Procurement Act	%	2015	75	2020	71
Size of public debt stock	%	2015	34,2	2020	37,5
Prepaid meters as share of total meters installed	%	2015	100	2020	96,5
Establish separate accounting system for generation, transmission and distribution	None	2015	Separate accounting systems established for generation, transmission and distribution (end 2017)	2020	Separate accounting system for all three segments (2013)
Installation of system of metering/audit of transformers to detect system loss	%	2015	100	2020	80,6
Carry out revaluation of TANESCO’s assets and liabilities in preparation for unbundling	None	2015	Asset Revaluation conducted (March 2017)	2020	Completed and has been accounted in the FY 2015/2016
Number of MEM and TANESCO managers trained on renewable energy	%	2015	30	2020	55
Number of MEM and TANESCO managers trained on policy and planning	%	2015	30	2020	55
Percentage of women in TANESCO’s executive management	%	2015	40	2020	40
Development of Gender Policy for TANESCO	None	2015	Gender policy for TANESCO approved (2016)	2020	Gender Policy for TANESCO in place
EWURA conducts updated cost of service study	None	2015	No cost of service study conducted	2020	Cost of service study conducted (2017)
EWURA approves model PPAs for renewables	None	2015	Model for PPAs in oil and Gas approved	2020	PPAs for renewables approved (2016)
Cabinet approves a revised National Energy Policy to, among others, clarify Government’s intent on PSP in the power sector	None	2015	Revised energy policy adopted	2020	Revised energy policy adopted by 2016
Cabinet approves revised draft Electricity Act of 2008 to allow private generators to sell directly to bulk off-takers	None	2015	2008 Electricity Act in place	2020	Revised Electricity Act approved by Cabinet (2016)
An Electricity Infrastructure Procurement Committee (EIPC) established to manage competitive procurement of power infrastructure projects	None	2015	No EIPC in place (2013)	2020	EIPC established (2017)
Institutional arrangements for PPP streamlined	None	2015	Streamlined institutional arrangements in place	2020	Revisions to the PPP Act have been approved by Parliament
Debt Management Department created within the Ministry of Finance	None	2015	Debt Management Department created (2016)	2020	Debt Management Department created
Revised Government Loans, Guarantees and Grants Act submitted to Parliament	None	2015	Revised Government Loans, Guarantees and Grants Act submitted to Parliament (2017)	2020	Revised Government Loans, Guarantees and Grants Act
Options study on the clean- up of TANESCO’s books prior to unbundling	None	2015	Options study conducted (2017)	2020	No study conducted
Revised Public Procurement Act enacted by parliament	None	2015	Revised Public Procurement Act enacted by parliament (2016)	2020	Revised Public Procurement Act enacted by parliament
National Plan for E procurement approved	None	2015	National Plan for e-procurement approved (2016)	2020	National plan for e procurement approved
TANESCO’s procurement activities decentralized to zonal offices to improve efficiency	None	2015	TANESCO’s procurement function decentralized (2016)	2020	procurement function at TANESCO decentralized