TZ-Second Power and Gas Sector DPO

closed

Closed

The Second Power and Gas Sector Development Policy Operation (PGSDPO-II) to the United Republic of Tanzania will be the second in a series of three annual programmatic development policy operations (DPOs). The operation is an International Development Association (IDA) credit for the amount of United States (U.S.) 100 million dollars. The program development objective (PDO) of the series is to: (i) strengthen the country’s ability to bridge the financial gap in its power sector; (ii) reduce the cost of power supply and promote private sector participation in the power sector; and (iii) strengthen the policy and institutional framework for the management of the country’s natural gas resources. The Government of Tanzania (GoT) has begun implementing a strategy to bring the sector back to a financially sustainable path by enhancing revenues in the power sector in the short term and reducing the cost of electricity supply in the medium term. In the medium term, cost savings will be realized by shifting the power generation mix from liquid fuel-based technologies to natural gas-based power plants and other sources of cheaper and cleaner energy, with broader and competitive private sector participation. While some challenges remain, the GoT has taken vigorous efforts since the First Power and Gas Sector DPO (PGSDPO-I) was approved by the World Bank’s Board of Executive Directors on March 26, 2013. This DPO series helps the country reduce poverty and improve its shared prosperity by facilitating implementation of the Government’s strategy in the power and gas sectors, which will help to increase access to electricity and private sector development.

FY17 - Energy and Extractives

World Bank Group

Project

Bridge, Oil and Gas, Natural Gas, Power Generation (CCGT), Government