Tanzania and Uganda begin the $250 million 400 kV power interconnector procurement process.

Posted on : Monday , 2nd March 2026

Uganda and Tanzania have initiated the procurement process for a major 400kV power interconnector, which is projected to strengthen regional electricity trade. The Uganda Electricity Transmission Company Limited (UETCL) recently organized an early market engagement meeting in Kampala to inform contractors, engineers, and other stakeholders about the technical aspects of the project and the updated funding conditions.

The project, which is valued at roughly $250 million and mainly supported by the World Bank, will consist of constructing a 257-kilometer high-voltage transmission line that connects the national grids of both countries. When completed, this line will enhance power reliability and system stability in Uganda and Tanzania. It will also be pivotal in facilitating cross-border electricity trade within the East African Power Pool framework, allowing member countries to trade surplus electricity through coordinated efforts. As Uganda's generation capacity continues to rise, the interconnector will create a crucial pathway for exporting excess electricity to Tanzania.

An important characteristic of this procurement process is the enforcement of the World Bank’s updated 2025 procurement regulations. These guidelines necessitate early market engagement for major international infrastructure contracts to minimize the risk of delays and technical issues. UETCL officials pointed out that compliance with these revised rules is vital for bidders.

Additionally, the project features stringent local participation requirements, mandating that at least 30 percent of total labor costs be allocated to local workers. Authorities have asserted that satisfying these local content requirements will be a significant consideration during the evaluation of bids.

The interconnector has been partitioned into significant components. These consist of a 165-kilometer transmission line running from Wobulenzi to Masaka and a 92-kilometer section from Masaka to the Mutukula border. Furthermore, the plan entails the construction of a new 400kV substation in Masaka and improvements to existing facilities to support higher power capacities.

Currently, the trade of electricity between the two countries is dependent on a smaller 132kV line, which restricts transfer capacity. With the significant growth of power exports from Uganda to Tanzania over the past 20 years, the introduction of a new high-capacity link is viewed as a vital improvement to meet increasing demand, facilitate regional integration, and ensure sustainable economic growth