Tanzania Compact

Turning Blackouts into Opportunities

MCC's investments in Zanzibar's electrical grid should make regular blackouts a thing of the past

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A Better Life by Working Together

The Gender Integration Program in Tanzania helped train about 1,000 people in skills like finances, organizational management and entrepreneurship to more fully integrate men and women into the economy. One group in Dodoma is already seeing big results.

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Solar Power Brings Brighter Future for Western Tanzania

MCC brought solar power to western Tanzania, helping bring electricity for the first time to health centers, dispensaries, village markets, and secondary schools. It's the largest solar-power project in the country.

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In February 2008, the Millennium Challenge Corporation signed a five-year, $698 million compact with the Government of Tanzania seeking to reduce poverty and stimulate economic growth by increasing household incomes through targeted investments in transportation, energy, and water. The investments in three projects will help Tanzanians address the inadequate transportation network by improving roads that will increase commerce and help connect communities with markets, schools, and health clinics; improve the reliability and quality of electric power and extend electricity service to communities not currently served; and increase the availability and reliability of potable water for domestic and commercial use which will increase health and productivity. The compact in Tanzania entered into force (EIF) in September 2008, formally initiating the five-year timeline for project implementation.

  • Signed:
    February 17, 2008
  • Entry into Force:
    September 17, 2008
  • Completed:
    September 17, 2013

Financial data as of .

This project will improve electricity service and coverage through the addition of new power generation, transmission and distribution capacity, as well as through much needed reinforcement of the existing network. The project will increase investment and economic activity to businesses and communities, some of which will receive electricity for the first time

  • Lay a submarine electric transmission cable from the mainland to Unguja Island (Zanzibar), as well as extend the distribution network; and
  • Rehabilitate the existing distribution infrastructure and a number of distribution line extensions to unserved areas in six regions (Mwanza, Iringa, Mbeya, Dodoma, Tanga, Kigoma and Morogoro).

This project aims to reduce transport costs and travel times, which will facilitate access to social services and markets and will increase tourism potential.

  • Rehabilitate and upgrade three trunk roads on the mainland;
  • Upgrade the airport on Mafia Island; and
  • Repair selected rural roads on Pemba Island (Zanzibar).

The project also includes funds for road maintenance to enhance Tanzania’s capacity to maintain its road network.

This project aims to increase the quantity and reliability of potable water for domestic and commercial use to reduce the incidence of water-related disease, increase time available for productive activities including education, promote greater investments in physical capital, and, ultimately, lead to an increase in income.

  • Expand the capacity of the Lower Ruvu water treatment plant;
  • Improve the system efficiencies of the Dar es Salaam Water and Sewerage Authority;
  • Rehabilitate water intake and water treatment plants; and
  • Improve the existing distribution network in the city of Morogoro.

Tanzania Compact Closeout Video

MCC’s investments will help Tanzanians address the inadequate transportation network by improving roads that will increase commerce and help connect communities with markets, schools and health clinics; improve the reliability and quality of electric power and extend electricity service; and increase the availability and reliability of potable water for domestic and commercial use.

  • November 7, 2005

    Obtained Compact Eligibility

    Tanzania obtained eligibility to receive MCC funding.
  • December 31, 2007

    Electricity Act Passed

    The Government of Tanzania passed a new Electricity Act to update 75-year old legislation, fulfilling a compact requirement. Its provisions have created an environment more conducive for private sector participation and investment.
  • February 16, 2008

    Compact Signed

    A $698 million compact was signed between the Millennium Challenge Corporation and the Government of Tanzania.
  • September 16, 2008

    Entry Into Force

    The Tanzania Compact entered into force, the beginning of the five-year implementation phase.
  • December 31, 2008

    National Road Safety Policy Approved

    In collaboration with MCC and other donors, the Government of Tanzania established a new National Road Safety Policy. As a result of this policy the government will create and fund an autonomous Road Safety Board.
  • June 2, 2010

    Groundbreaking of Tanga-Horohoro Road

    During a visit to Tanzania, CEO Daniel W. Yohannes joined President Jakaya Kikwete at the groundbreaking of the Tanga-Horohoro road, a transportation corridor that stretches from Tanga to the Kenyan border.
  • August 31, 2010

    American Companies Win Energy Sector Contracts

    Symbion Power of Washington, D.C., and Pike Electric of Mount Airy, North Carolina, competitively won contracts valued at $47.7 million and $17.9 million.
  • April 30, 2011

    Mainland Transmission and Distribution Lines Improvements Begin

    The first of two contracts improving the mainland electric lines was signed.
  • September 25, 2011

    Non-revenue Water Baseline Study

    The non-revenue water baseline study of the Dar es Salaam region was completed. This is the most comprehensive study undertaken to understand the reasons contributing to the more-than-50 percent loss of water in the system. This along with detailed plans for follow-on work will allow the Dar es Salaam Water and Sewer Authority to address the issue with significantly better accuracy.
  • October 31, 2011

    Mafia Island Airport Construction Begins

    The construction contract for the runway and airport area improvements was signed.
  • May 31, 2012

    First Tranche of Zanzibar Tariff Increase Implemented

    The Government of Zanzibar committed to make progress towards cost reflective tariffs. The first tranche which increased the tariff by 40 percent was implemented on June 1, 2012. A second tranche of increases is expected in October 2013.
  • September 29, 2012

    Tanga-Horohoro Road Improvements Completed

    Gravel to asphalt improvements to the Tanga-Horohoro Road, which help link the region to the port of Mombasa, Kenya, about 120 kilometers away, were completed. The upgrade means that an asphalt paved highway route now exists between Dar es Salaam and Mombasa.
  • April 9, 2013

    Zanzibar Submarine Transmission Cable Energized

    Together with Zanzibar President Mohammed Shein and MCC CEO Daniel W. Yohannes , more than 15,000 people gathered in Amani Stadium to mark the installation of the 100-megawatt submarine transmission cable that is bringing reliable electricity to Zanzibar from the mainland.
  • April 12, 2013

    Tanga-Horohoro Road Inaugurated

    MCC CEO Daniel Yohannes and Tanzanian President Jakaya Kikwete celebrated the successful completion of the Tanga-Horohoro road during the MCC CEO's visit to Tanzania. The road is improving linkages between northeastern Tanzania and Kenya, and creates a corridor for economic opportunity in this region of Tanzania and beyond.
  • April 12, 2013

    Dodoma Region Transmission and Distribution Lines Improvements Completed

    Approximately 800 kilometers of transmission lines were completed in Dodoma, enabling increased access to electricity that will provide new opportunities for businesses and entrepreneurs to succeed, students to study, health centers to meet local community needs, and communities to prosper.
  • July 31, 2013

    Mafia Island Airport Construction Completed

    The new 1.6 kilometers of runway and taxiway was upgraded from dirt to asphalt concrete, which will help to drive the eco-tourism that is now blossoming across the island.
  • September 9, 2013

    Mwanza Transmission and Distribution Lines Inaugurated

    President Kikwete inaugurated the transmission and distribution project in Mwanza Province, which includes more than 680 kilometers of medium- and low-voltage lines, as well as three substations.
  • September 15, 2013

    Substation Improvement Program Completed

    All 27 substations became energized, marking the end of a significant rehabilitation project of the vital substation infrastructure in targeted areas throughout Tanzania.
  • September 16, 2013

    Compact End Date

    The Tanzania Compact successfully reached its end date. The Government of Tanzania has committed $132 million to cover cost overruns and to finish the few remaining uncompleted project activities, most of which will be done by January 2014.