Tanzanian Prime Minister Dr. Mwigulu Nchemba on Friday laid the foundation stone for construction of a power substation and transmission lines project in Mkata in the Tanga Region.
The project is being funded by the Government of the United Republic of Tanzania, with the substation costing TSh 44.14 billion, while the transmission line component will cost TSh 5.75 billion.
It forms part of the National Grid Strengthening Programme aimed at enhancing electricity availability in the Handeni and Kilindi Districts, as well as improving power supply reliability for graphite mining operations in Kwamsisi village.
The project is expected to boost access to reliable electricity and stimulate economic growth in the Handeni District.
Speaking on February 13, 2026, during the foundation stone–laying ceremony, the Minister for Energy, Hon. Deogratius Ndejembi, said the funds will also be used to construct a 45-kilometre, 33-kilovolt power distribution line from the Mkata substation to Kwamsisi village.
He explained that for many years, residents of Handeni depended on electricity supplied from Tanga, which resulted in significant transmission losses due to the long distance, as well as frequent voltage drops.
With this project, electricity will now be sourced from Chalinze, which is closer to Handeni, thereby improving service stability and reducing frequent outages.
According to Minister Ndejembi, completion of the substation will strengthen reliable electricity access in the Handeni and Kilindi Districts, boost graphite mining activities, attract new investors, and increase revenue for the national power utility through the addition of large customers once the project is completed.
Additionally, about 120 jobs are expected to be created for local residents.
The project is being implemented by TBEA, a Chinese company.
Construction began on August 17, 2023, and is scheduled for completion on November 16, 2026.
A Kwamsisi resident, Rashid Hamza, said it had previously been difficult to carry out economic activities that depend on electricity due to frequent outages.
He expressed hope that the project will be completed on time to enable residents to increase production and income through reliable energy access.
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