Uganda is moving forward with a 937.5 billion shilling electricity project to connect its power grid with Tanzania, a move designed to strengthen regional energy trade and improve grid stability.
The Uganda Electricity Transmission Company Limited is currently engaging with engineers and private sector stakeholders as it prepares for the procurement phase of the 400kV Uganda-Tanzania Interconnection Project. The initiative involves building a 257-kilometer transmission line and is considered one of the most strategic energy projects in East Africa.
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The project is estimated to cost 250 million dollars, with funding provided by the World Bank. During a market engagement meeting in Kampala, UETCL Chief Executive Officer Richard Matsiko said early collaboration with contractors is essential to avoid the delays and design overruns that have hindered previous large-scale infrastructure projects in the region.
This project is not just a transmission line but a critical asset for regional integration, Matsiko said. He noted that the interconnection supports the goals of the East African Power Pool, a plan involving more than 12 countries that allows those with surplus power to sell it through a regional auction system.
The project will be divided into three main segments. These include a 165.1-kilometer line from Wobulenzi to Masaka and a 92-kilometer line from Masaka to Mutukula. Additionally, the plan includes the construction of a new substation in Masaka and the expansion of the existing Wobulenzi substation.
The project follows updated World Bank procurement regulations introduced in September 2025. These rules require mandatory early market engagement for large international contracts valued at 10 million dollars or more. Under the new guidelines, bidders must also commit to allocating at least 30 percent of total labor costs to local workers.
Daniel Kisira, the UETCL head of project implementation, said the local hiring requirement is mandatory and will be a key factor in evaluating bids. The goal is to reduce implementation risks while maximizing the economic benefits for local communities.
Data from the Electricity Regulatory Authority shows that Uganda’s electricity exports to Tanzania have grown sevenfold over the last 20 years. Currently, power is traded via a smaller 132kV line, but the new high-voltage backbone is expected to significantly increase the volume and reliability of cross-border supply.
Uganda and Tanzania already cooperate on energy through the 14MW Kikagati Hydropower Plant on the River Kagera. Officials say the new 400kV link will build on this foundation to ensure long-term energy security for both nations.
