TZ-Rural Electrification Expansion Program

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The development objectives of Rural Electrification Expansion Project for Tanzania are: (a) to increase access to electricity in rural areas; and (b) to scale-up the supply of renewable energy in rural areas while strengthening sector institutional capacity. The Rural Energy Agency (REA) and the private sector are implementing the National Rural Electrification Program (NREP), the government program, during 2013–2022, as outlined in the Prospectus. The Government of Tanzania (GoT) plans to achieve about 1.3 million connections in rural areas (including public facilities), increasing the average access rate to electricity (both urban and rural) from the current 24 percent to 35 percent by 2022. This Program-for-Results (PforR) aims to support three of the electrification avenues of the NREP identified in the Prospectus: (i) grid extension; (ii) off-grid electrification; and (iii) within the category of offgrid electrification, renewable technologies, including solar photovoltaic (PV). This program is strategically relevant and fully aligned with TDV 2025. This PforR will support the government in implementing the NREP based on these existing plans and will support the targets to be determined in the more detailed Master Plan, as the government adopts and implements it over time. It supports a subset of the NREP, consisting of a time slice of the grid investments outlined in the Prospectus (2016–2022) and the off-grid investments and distributed technologies by the private sector, implemented by the REA. In addition, PforR will support the joint efforts of the GoT and Development Partners (DPs) in strengthening the capacity of the relevant sector institutions. Considering the level of available financing from the DPs, combined with the low level of private sector participation in relation to the investment needs outlined in the Prospectus, public sector financing is crucial for expanding electricity access and improving sector performance in areas that will be connected to the grid at later stages.