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March 29, 2011

Grant Agreement for "The Project for Reinforcement of Power Distribution in Zanzibar Island"

PhotoSigning Ceremony

On March 29, 2011, Mr. Yukihide Katsuta, Chief Representative of JICA Tanzania Office, and Mr. Khamis Mussa Omar, Principal Secretary for Finance, Economic Affairs and Development Planning in the President's Office, signed the Grant Agreement concerning Japanese Grant Aid for ‘The Project for Reinforcement of Power Distribution in Zanzibar Island', worth 3 billion Japanese Yen, approximately 56 billion Tanzanian Shillings.

This project for the upgrade of the Mtoni substation, the construction of two new substation(Welezo and Mwanyanya) and upgrade of three important transmission lines(33kV) of 80km in total length, is expected to improve the power supply of Unguja Island by reducing the burden of overload at aging power facilities.

This project will have close cooperation with the project of Millennium Challenge Corporation Fund of the United States of America, which has awarded the contract to VISCAS Corporation of Japan to lay another undersea electricity cable to Fumba through the Zanzibar Channel, and is expected to contribute to the economic growth and poverty reduction in Zanzibar.

PhotoCurrent Mtoni substation

In his speech during this ceremony, Mr. Yukihide Katsuta, Chief Representative of JICA Tanzania Office, said; "As an implementing agency of Japanese Official Development Assistance, JICA promises to make our best effort to carry out this project smoothly together with the Ministry and ZECO (Zanzibar Electricity Company). It is the sincere hope of the people in Japan that our cooperation efforts will achieve a brilliant success, so that the people in Zanzibar can enjoy its benefit as soon as possible."

Exchange Rate: 1 yen= 18.62 Tsh. (March 23, 2011)

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