Uganda And Tanzania Launch Procurement For $250 Million 400 kV Power Interconnector

Uganda and Tanzania have moved into the procurement stage for a major 400kV power interconnector that is expected 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 project’s technical scope and updated funding conditions.

The project, valued at about $250 million and largely financed by the World Bank, will involve the construction of a 257-kilometer high-voltage transmission line linking the national grids of both countries. Once completed, the line will improve power reliability and system stability in Uganda and Tanzania. It will also play a key role in supporting cross-border electricity trade under the East African Power Pool framework, which allows member countries to buy and sell surplus power through coordinated arrangements. As Uganda’s generation capacity continues to increase, the interconnector will create an important pathway for exporting excess electricity to Tanzania.

A notable feature of this procurement process is the implementation of the World Bank’s updated 2025 procurement regulations. These guidelines require early market engagement for large international infrastructure contracts to reduce the risk of delays and technical shortcomings. UETCL officials highlighted that compliance with these updated rules is essential for bidders. The project also includes strong local participation requirements, with at least 30 percent of total labor costs to be allocated to local workers. Authorities have stated that meeting these local content obligations will be an important factor during bid evaluation.

The interconnector has been divided into key components. These include a 165-kilometer transmission line from Wobulenzi to Masaka and a 92-kilometer stretch from Masaka to the Mutukula border. The plan also covers the construction of a new 400kV substation in Masaka and upgrades to existing infrastructure to handle higher power flows.

Currently, electricity trade between the two countries depends on a smaller 132kV line, which limits transfer capacity. With power exports from Uganda to Tanzania having grown significantly over the past 20 years, the new high-capacity link is seen as a necessary upgrade to support rising demand, regional integration, and long-term economic growth.