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The ZTIP will help to create the world’s largest geographic energy market – from Cape Town to Cairo The Zambia-Tanzania Interconnector Project (ZTIP), backed by the World Bank, will enable Zambia to access more sustainable and affordable energy to power its economy and boost job creation. A World Bank statement explains that the project will benefit existing and prospective users of electricity services in Zambia and throughout the Southern Africa region through improved security of supply and the potential to reduce service costs through increased electricity trade. It will also enable electricity access in rural areas, leading to improved education and health services, boosting productivity, and facilitating business expansion. The ZTIP forms part of the World Bank’s Regional Energy Transmission, Trade, and Decarbonisation-Southern Africa-Multiphase Programmatic Approach (RETRADE-SA MPA), which aims to improve power trade, climate resilience and low-carbon electricity grid development in the Southern African Power Pool (SAPP). The total grant funding is $292 million, with $245 million from the International Development Association (IDA), $17 million from the United Kingdom Foreign Commonwealth & Development Office (FCDO) through the Energy Sector Management Assistance Program (ESMAP), and $30 million from the European Union (EU). According to the World Bank, the project involves building a 620km 400kV double circuit transmission line from Iringa in Tanzania’s Southern Highlands to the Zambian border, then continuing to Sumbawanga. This will connect Tanzania’s grid to Zambia’s grid, including constructing a substation in Tunduma, near the Zambia border. Zambia-Tanzania interconnector project will strengthen Zambia’s resilience to climate shocks Energy Practice Manager for Eastern and Southern Africa at the World Bank, Yadviga Semikolenova, said, “ZTIP transmission line will transform Africa’s energy markets as it will complete the last part of the transmission corridor that connects the Eastern Africa Power Pool (EAPP) and SAPP, creating the largest geographic energy market in the world—from Cape Town to Cairo — to lower electricity costs across the entire region. “For Zambia, it will strengthen its resilience to climate shocks and reinforce the Zambian transmission system required to enable new renewable energy generation projects and the expansion of access.” Achim Fock, World Bank Country Manager for Zambia, said the country’s power sector faces significant financial viability issues, hindering economic growth. “Through the ZTIP, the World Bank will partner with Zambia to increase power transmission capacity between Zambia and Tanzania, and therefore between East and Southern Africa,” he said. In its environmental and social management plan released in November 2024, the Zambia Electricity Supply Corporation Limited (ZESCO) stated that the project connects the Southern African Power Pool (SAPP) and Eastern Africa Power Pool (EAPP) for the first time. “SAPP currently has 12 member countries, and EAPP has 13 member countries. The interconnection between Zambia and Tanzania is the critical point of connection between the two power pools and will in the future facilitate power trading transactions between countries as far south as South Africa and as far north as Libya. “ The state-owned power company said that, currently, power lines cover only a few regions of different countries, and several networks are not connected. The project has significantly evolved since its initiation in late 2013. There have been several changes to the designs since then. As for the implementation schedule, activities starting from the start-up meeting of the construction contract to commissioning are planned to require 24 months. Job opportunities for communities in Zambia and the regions ZESCO stated that at the peak of the construction phase, as many as 600 workers will be employed. Of the 600 workers hired during construction, about 120 will work for the project throughout the life of the project through contracts with the prime contractor and their subcontractors. The utility states that 20% of employees will be skilled and 80% will be unskilled. It is also projected that about 85% of staff will be local, with the remaining 15% being regional or international. |