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.


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

African Development Fund


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


Contact Details

Email f.nkulikiyimfura@afdb.org

Geographic Location

Country Tanzania, United Republic of
Coordinates Location Name
-6.82349 39.26951 Dar es Salaam