Uganda Electricity Transmission Company Limited (UETCL) says civil works and transmission line construction for the Uganda-Tanzania Power Interconnection Project are expected to begin in the 2026/27 financial year, with commercial operations targeted for 2029.
The 220kV Uganda-Tanzania Interconnection Project, UETCL says, is currently in the procurement and contractor mobilization phase.
The project will link Masaka in Uganda to Mwanza in Tanzania, creating a critical regional transmission corridor, with UETCL now finalizing preparatory activities and conducting early market engagement with prospective contractors and bidders for the construction of the Masaka-Mutukula-Mwanza high-voltage transmission line.
The utility is also completing the Resettlement Action Plan (RAP) to compensate Project Affected Persons (PAPs), a prerequisite before construction can commence.
The broader interconnector is expected to be commissioned between 2028 and 2029.
mobilisation
Meanwhile, the Uganda Electricity Distribution Company Limited (UEDCL) has launched a major distribution network upgrade in Greater Masaka and surrounding areas.
The works include the installation of new transformers, replacement of obsolete poles, rehabilitation of weak sections of the network, and interventions aimed at addressing recurring power outages.
The interconnector is expected to enhance electricity trade between Uganda, Tanzania, and the wider East Africa, while improving power supply reliability and energy security in both countries.
It will support economic development along the transmission corridor, strengthen integration between the Eastern Africa Power Pool and the Southern African Power Pool, and facilitate access to regional energy resources, including hydropower from DR Congo and Ethiopia, as well as geothermal energy from Kenya.
The project is also expected to reduce system losses and lower operational costs through coordinated power exchange.
Strategic importance
UETCL Chief Executive Officer Richard Matsiko described the project as a key component of the regional power integration agenda under the East African Community (EAC).
‘This transmission corridor is strategically important as it completes a critical link in the high-voltage transmission backbone around Lake Victoria, creating a robust regional grid,’ he said, noting that the corridor passes through areas with significant generation projects under development, including the 80MW Rusumo Falls Hydropower Project, the 87MW Kakono Hydropower Project, the 35MW Nsongezi Hydropower Project and the 14MW Kikagati Hydropower Project.
Matsiko also indicated that the project will facilitate cross-border power trade, enhance energy security, reduce reserve generation requirements, optimize operating costs, and support industrialization across the region.
Technical specifications
The transmission line will be approximately 298 kilometres long and designed as a 220kV double-circuit line, with provisions for a future upgrade to 400kV.
It will utilize self-supporting lattice steel towers fitted with ACSR ‘Zebra’ conductors or their equivalent. Approximately 700 to 750 transmission towers will be erected along the route.
The project will incorporate composite insulators for improved performance in polluted environments, vibration dampers for conductor protection, and Optical Ground Wire (OPGW) technology for communication and system control.
Modern gas-insulated switchgear (GIS) technology will also be deployed at substations where appropriate.
The line will have a transfer capacity of between 300 and 400 MVA, a right-of-way width of 40 metres, while substations will be equipped with 245kV-rated equipment and designed to withstand fault levels of up to 40kA.
The project includes the expansion of the Masaka substation in Uganda and the Mwanza substation in Tanzania, together with the installation of reactive power compensation equipment to maintain voltage stability. The transmission capacity is expected to meet projected regional electricity trade requirements over the coming decade.
The project will be financed through a blended funding model combining concessional loans from multilateral development institutions, potential grants for technical assistance and environmental and social mitigation measures, and counterpart funding from the governments of Uganda and Tanzania.
Expected financiers include the World Bank as lead financier, the African Development Bank, the European Investment Bank and Germany’s KfW Development Bank.
Preliminary financing discussions indicate a capital structure comprising approximately 80 to 85 percent debt financing from international financial institutions and 15 to 20 percent equity contributions from the two governments and their national utilities.
Market outlook
Regional electricity trade remains constrained by limited interconnection infrastructure despite the significant economic benefits associated with integrated power markets.
Studies indicate a strong potential for power exchange between Uganda’s hydropower-based system and Tanzania’s thermal and mixed-generation system, creating opportunities for seasonal and daily balancing of electricity supply.
The project is expected to remove a major infrastructure bottleneck in East Africa’s regional electricity market.