Tanzania - Power Sector Reform and Governance Support Programme Phases II and III

Project Summary

Approval Date	15 Dec 2016
Signature Date	19 Dec 2016
Planned Completion Date	31 Dec 2017
Last Disbursement Planned Date	31 Dec 2017
Sovereign / Non-Sovereign	Sovereign
Sector	Multi-Sector
DAC Sector Code	15124
Commitment	U.A 50,000,000
Status	Completion

Project General Description

Programs II and III for Supporting Reforms and Governance in the Electricity Sector combined aim to support the Tanzanian Government's efforts to address the challenge of sufficient, reliable and affordable electricity. This combined operation, which aligns with the first phase of the intervention, will continue to help address the associated challenges in Public Financial Management (PFM), building on the achievements of past and ongoing interventions. of the Bank in this sector. The project is also helping to address the fiscal risks posed by public enterprises, through support for public procurement and debt management reforms. Specifically, the intervention is to support public sector reforms in the electricity sector, in particular measures to enhance the economic and financial viability of the electricity sector and to encourage the participation of the electricity sector. private sector. Particular emphasis is placed on two key areas of PFM, namely (i) continued improvement of procurement systems; and ii) mitigating the risks to fiscal stability posed by parastatals through better debt management.

Project Objectives

The main objective of the operation is to promote inclusive growth and economic competitiveness, through energy sector reform and improved economic and financial governance. It is specifically about helping Tanzania meet its development challenges, transforming the energy sector into a financially and commercially viable, technically efficient sector, and capable of providing consumers with a reliable and affordable source of electricity.

Beneficiaries

Direct beneficiaries include the Ministry of Energy and Mineral Resources (Energy Division), the Ministry of Finance (Debt Management, Procurement Policy), TANESCO and EWURA. PPRA will also benefit by supporting improved public procurement. The indirect beneficiaries are Tanzanians, due to the considerable improvement in the supply and accessibility of electricity service, as well as the lowering of medium-term tariffs linked to the improvement of the energy mix and the elimination of more expensive emergency electricity.

Participating Organization

Funding

African Development Fund

Implementing

Ministère des Finances en étroite collaboration avec le Ministère de l’Énergie et des Ressources minières

Information

IATI identifier	46002-P-TZ-KA0-002
Last Update	01 Feb 2023

Export

Contact Details

Name	OKUDZETO Eline
Email	e.okudzeto@afdb.org

Geographic Location

Country	Tanzania, United Republic of

Coordinates	Location Name
-6.82349 39.26951	Dar es Salaam

Project Classification

Finance Type	Aid Loan Excluding Debt Reorganisation
Flow Type	ODA
Aid Type	Sector Budget Support

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 - PSRGSP II III - APPROVED
Appraisal report	fr	TANZANIE - PRSGSP II III - Approuvé FINAL
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	%	2016	32	2020	67
Improved revenue collection by TANESCO	Tanzanian shillings bilion	2016	1613,14	2020	1762
Share of total electricity supplied through non-emergency sources	%	2016	100	2020	100
Average compliance of Procuring entities with the new Public Procurement Act	%	2016	75	2020	71
Size of public debt stock	%	2016	34,2	2020	37,5
Prepaid meters as share of total meters installed	%	2016	100	2020	96,5
Establish separate accounting system for generation, transmission and distribution	None	2016	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	%	2016	100	2020	80,6
Carry out revaluation of TANESCO’s assets and liabilities in preparation for unbundling	None	2016	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	%	2016	30	2020	55
Number of MEM and TANESCO managers trained on policy and planning	%	2016	30	2020	55
Percentage of women in TANESCO’s executive management	%	2016	40	2020	40
Development of Gender Policy for TANESCO	None	2016	Gender policy for TANESCO approved (2016)	2020	Gender Policy for TANESCO in place
EWURA conducts updated cost of service study	None	2016	No cost of service study conducted	2020	Cost of service study conducted (2017)
EWURA approves model PPAs for renewables	None	2016	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	2016	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	2016	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	2016	No EIPC in place (2013)	2020	EIPC established (2017)
Institutional arrangements for PPP streamlined	None	2016	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	2016	Debt Management Department created (2016)	2020	Debt Management Department created
Revised Government Loans, Guarantees and Grants Act submitted to Parliament	None	2016	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	2016	Options study conducted (2017)	2020	No study conducted
Revised Public Procurement Act enacted by parliament	None	2016	Revised Public Procurement Act enacted by parliament (2016)	2020	Revised Public Procurement Act enacted by parliament
National Plan for E procurement approved	None	2016	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	2016	TANESCO’s procurement function decentralized (2016)	2020	procurement function at TANESCO decentralized