Dr. Nyamajeje C. Weggoro Director, Productive and Social Sectors EAC Secretariat THE DAR ES SALAAM-TANGA- MOMBASA NATURAL GAS PIPELINE AND EAST AFRICAN POWER MASTER PLAN PROJECTS

 Introduction  The Dar es Salaam-Tanga-Mombasa Natural Gas Pipeline Project  The East African Power Master Plan 2

 Implementation of EAC regional projects draws mandate from Article 101 of the Treaty establishing the East African Community  Article 101, 2(a) supports the least cost development and transmission of electric power  Article 101, 2(e) support the construction of oil and gas pipelines  The 3 rd EAC Development Strategy identifies, among others:  Implementation of the EAPMP  Construction of Dar es Salaam-Tanga-Mombasa Natural Gas Pipeline

Project Description The project entails construction of approximately 530km natural gas pipeline from Dar es Salaam to Tanga and Mombasa including related facilities and provision for possible future expansion of the pipeline system like construction of a spur line to supply other key consumption centres such as Moshi and Arusha cities and other off-take points. 4

Study Objectives  The main objective of the study is to carry out a detailed assessment of the overall feasibility of implementing a natural gas pipeline from Dar es Salaam to Tanga and Mombasa covering the following major areas:  Determine the route location for the proposed project;  Technical feasibility of the project ;  Economic and financial evaluation; and  Environmental and social impact assessment and mitigation measures.

Scope  The feasibility study shall cover:  Initial review of existing data and studies  Technical feasibility and conceptual design  Economic evaluation  Financial evaluation  Environmental and Social Impact Assessment (ESIA)  Assessment of technical risks and other unknowns Time Frame  The study is estimated to be completed six (6) months from the date of award of the contract

Expected Outputs  Feasibility Study Report covering technical feasibility, conceptual project design and economic and financial evaluation  Environmental and Social Impact Assessment Study Report  Project contract packaging for implementation  Project implementation Schedule  Terms of Reference for Project supervision during construction. 7

Current Status  Expression of Interest closed on 4 th August 2009  Evaluation of EOI is ongoing  Study is expected to commence in October 2009  Final Report is expected in April 2010

Project Description The project entails a comprehensive study to identify power generation and transmission projects from Kenya, Uganda, Tanzania, Burundi and Rwanda that would provide the least cost development option for the Region for the next 25 years. The overall objective of the study is to review and update the existing EAPMP study to take account of new developments since completion of EAPMP in 2005, which include:  Admission of Burundi and Rwanda into EAC; and  Changes in key assumptions and parameters.

Study Objectives  Specific objectives of the study are:  To review and update the load forecast for the region for the next 25 years;  To define the least-cost power development program for EAC’s generation and transmission systems to meet projected demand for the next 25 years;  To assess possible interconnection options to other regions ; and  To ensure reliable, sustainable, cost-effective and environmentally acceptable power supply in the region.

Scope  Review previous studies  Review Load forecasts and Load characteristics  Review Planning Assumptions and Criteria  Identify potential generation and transmission options  Carry out conceptual review of the existing and proposed regional interconnection schemes  Develop a least cost development plan, including both generation and transmission  Prepare the annual capital requirement associated with the recommended least cost development plan

Expected Output  The expected outputs include:  Load Forecast;  Least Cost Generation Expansion Plan;  Transmission Expansion Plan;  Risk Analysis of the proposed expansion plans; and  Training for technical staff involved in Power System Expansion planning.  The Master Plan will be a strategic document that will guide the selection of projects for implementation in the power sub-sector.

Current Status  AfDB is financing development of a Power Master Plan and Grid Code Study for EAPP, the bank recommended reformulation of EAC and EAPP Master Plan Studies into one in order to avoid the likelihood of duplication given that three members of EAC are also members of EAPP.  TOR for EAC and EAPP studies have been consolidated  Modalities for joint implementation of the reformulated study agreed upon.  Consultant has been selected  The study is estimated to be completed 15 months

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