In collaboration with Norplan Tanzania, the partnership will provide Technical Assistance to the Rural Energy Agency (REA) for implementation of their Rural Electrification Densification Program up to 2018. The Royal Norwegian Embassy in Tanzania awarded the NOK 15 million contract to Multiconsult through international competitive bidding.
Tanzania is scaling up its rural electrification efforts
The electrification rate in rural Tanzania is very low, and not more than 20% of the rural population have access to electricity services. To ensure continued economic growth and development, the Tanzanian government is now intensifying its efforts to provide electricity to rural areas.
Through implementation of the Rural Electrification Densification Program, Multiconsult will assist REA in achieving is strategic objective of universal access to clean, modern energy within 2030. The overall objective is to assist REA establishing a standard financing and procurement framework for rural electrification.
“Our work is the first step in a national effort to substantially scale up the electrification rate in rural Tanzania”, says Multiconsult’s Project Director Andrew Yager. “Through developing a framework, as well as piloting the first batch of electrification in 300 villages, we establish the foundation for a nation-wide upscaling.”
Innovative development planning
The contract entails support to REA in overall program design, as well as procurement and construction supervision assistance for electrification in six regions. In addition, Multiconsult will develop a mechanism for results-based financing (RBF) and develop a program for stimulation of productive uses of electricity through full-scale implementation of micro credit schemes and information campaigns.
“Through our work with RBF and productive uses of electricity we are doing and demonstrating cutting edge development planning, addressing core challenges in international development assistance”, Andrew Yager explains.
Tanzania is one of the fastest growing countries on the African continent, with economic growth expected to be above 7% this year (2016), well above the expected continental average of 4.5% (2015) or Southern Africa’s 2.7%. However, Tanzania’s infrastructure is also one of the least developed in Africa.