Uganda and Tanzania have advanced to the procurement phase of a major 400kV electricity interconnection project aimed at boosting cross-border power trade and strengthening grid stability in both countries.
The Uganda Electricity Transmission Company Limited (UETCL) recently hosted an early market engagement session in Kampala to brief contractors, engineers, and potential bidders on the project’s technical design and revised financing framework.
Estimated at about US $250M and largely funded by the World Bank, the project will see the construction of a 257-kilometre high-voltage transmission line linking the two national grids. The interconnector is expected to enhance electricity reliability, improve system stability, and significantly increase transfer capacity between Uganda and Tanzania.
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EAPP’s objectives
The project is strategically aligned with the objectives of the East African Power Pool (EAPP), which promotes coordinated electricity trading among member states. As Uganda continues to expand its power generation capacity, particularly from large-scale plants, the new transmission link will provide a stronger corridor for exporting surplus electricity to Tanzania while also enabling mutual support during supply shortages.
A key feature of the procurement process is adherence to the World Bank’s updated 2025 procurement guidelines. These rules require early engagement with the market for large international infrastructure contracts in order to minimize delays and reduce technical risks. UETCL has stressed that bidders must fully comply with the revised standards. The project also incorporates firm local content requirements, including a provision that at least 30% of total labour costs be assigned to local workers. Compliance with these obligations will be an important consideration during bid evaluation.
The interconnector will be delivered in several components. These include a 165-kilometre transmission line between Wobulenzi and Masaka, a 92-kilometre section from Masaka to the Mutukula border, construction of a new 400kV substation in Masaka, and upgrades to existing infrastructure to accommodate increased electricity flows.
At present, power exchanges between the two countries rely on a lower-capacity 132kV line, which limits the volume of electricity that can be traded. With cross-border power flows having expanded significantly over the past two decades, the new high-capacity interconnector is considered essential for meeting rising demand, strengthening regional energy integration, and supporting long-term economic growth.
