ZAMBIA EXPANDS POWER TRADE

US$292 million secured for 613km interconnector to boost electricity trade with Tanzania and strengthen regional power supply.

By Francis Maingaila ♥️

Lusaka, Zambia24 — November 5, 2026 — Zambia is advancing plans to expand electricity trade with neighbouring countries through a 613-kilometre power transmission line linking Pensulo in Serenje to Nakonde, with the project expected to enable the country to trade up to 500 megawatts of electricity with Tanzania.

Minister of Electricity Peter Kapala told Parliament today that the Zambia-Tanzania Interconnector Project (ZTIP) is scheduled for commissioning in the second quarter of 2029.

Eng. Kapala said the project has secured US$292 million in grant funding from three cooperating partners.

The funding comprises US$245 million from the World Bank, US$30 million from the European Union and US$17 million from the United Kingdom.

He said the project forms part of a regional agreement involving Zambia, Tanzania and Kenya to construct a 2,300-kilometre high-voltage power line at an estimated cost of US$1.2 billion.

The three countries signed an agreement in December 2014 to develop the interconnector.

Kapala said the project will strengthen electricity trade between Southern and Eastern Africa by connecting the Southern Africa Power Pool (SAPP) to the Eastern Africa Power Pool (EAPP).

He said the development will also support industrial growth, create employment and improve the reliability of electricity supply in the participating countries.

Under the agreement, each country is responsible for developing and operating the infrastructure within its borders.

In Zambia, the project covers 613 kilometres of transmission lines running from Pensulo through Mpika and Kasama to Nakonde, where the power line will connect to Tanzania.

Kapala said project funding became effective on April 25, 2025, following the signing of a grant agreement between the Government and the World Bank's International Development Association on January 29, 2025.

He said ZESCO subsequently began procurement and implementation activities, dividing the project into five packages.

The first package involves constructing a 186-kilometre, 330-kilovolt transmission line from Pensulo to Mpika.

The second covers a 200-kilometre transmission line of the same capacity from Mpika to Kasama.

Kapala said both contracts were awarded to China's Sinotec Consortium on October 19, 2026, and the contractor began detailed site surveys on November 2, 2026.

The two new lines will strengthen the existing 330-kilovolt transmission network.

The third package involves constructing a 212-kilometre transmission line from Kasama to a new substation in Nakonde.

It also includes a 15-kilometre, 400-kilovolt line from Nakonde to the Tanzanian border.

Kapala explained that the 400-kilovolt connection is necessary because Tanzania's electricity transmission network operates at that voltage.

The fourth package involves constructing a new substation in Nakonde.

He said procurement of contractors for packages three and four is underway and is expected to be completed by March 2027.

Construction is scheduled to begin in the second quarter of 2027 and finish in the second quarter of 2029.

The fifth package involves installing dynamic voltage support equipment at Pensulo and Nakonde substations.

Kapala said the equipment will help maintain stable electricity transmission and support the planned trade of 500 megawatts between Zambia and Tanzania.

Preparation of the designs and tender documents is underway, with the tender expected to be issued in the first quarter of 2027.

Works are scheduled to start in the fourth quarter of 2027 and finish in the fourth quarter of 2029.

Kapala described the interconnector as an important investment under the Grow Zambia Agenda, saying it will strengthen the country's position in regional electricity trade.

He assured Parliament that Government was working closely with the World Bank to ensure effective implementation and timely delivery of the project.

Kapala called on Members of Parliament and other stakeholders to support the project as Zambia expands its electricity transmission capacity and strengthens its participation in regional power markets.