FIN Guides

Tanzania Energy Investment Due Diligence: Verifying Grid, Power, and Access Realities

If you are looking at a Tanzanian energy project, ask what still has to happen before it can connect, sell power and operate. Check its EWURA status, grid and offtake arrangements, land access and environmental position. Then establish who must deliver and pay for each remaining step. Until the relevant records and parties support the capacity, tariff and commissioning claims, keep those assumptions open in your model.

Illustrative electricity transmission infrastructure

Questions to answer before you commit

Does an approved power purchase agreement mean the project is operating?

No. Confirm the particular project’s current construction, grid connection, commissioning and supply status before using an operating-revenue assumption.

How do I check whether a Tanzania power project can connect to the grid?

Request current utility correspondence, studies, connection terms and the allocation of upgrade costs. A preliminary enquiry or modelled connection date is not an agreed, completed connection.

Check the regulated activity and its status

Identify whether the proposal involves generation, transmission, distribution, supply or another regulated activity. Ask which entity holds, has applied for or needs the relevant licence or registration. EWURA describes its licensing framework and publishes electricity licensee information; a pending application should never be described as an operating permission.

Have sector counsel review the specific project, exemptions, conditions and transfer implications. We can help you reconcile the sponsor’s claims with the authorities and local operating context. Your qualified advisers must provide the legal or regulatory opinions.

Make the grid and revenue path concrete

Request the actual correspondence and agreements behind claims about interconnection, capacity, connection point, network upgrades, timeline and who pays. Separate a preliminary discussion or technical study from an approved connection. Then distinguish interest from an offtaker from a bankable agreement with conditions that can be met.

You need to know which assumptions the project company controls, which depend on utilities or regulators, and which still require engineering studies. A forecast date is not the same as a committed delivery date.

Verify site access and the construction chain

Confirm land rights, access routes, environmental process, equipment procurement, contractor capability and realistic sequencing. A generation site without a workable route to the grid or customer remains a different investment proposition from the one in the model.

Report each dependency with its evidence, owner, estimated consequence and next decision. That way, you can see whether a missing connection or unresolved land issue changes an otherwise attractive resource assessment.

Primary sources and limits

Use these sources to start your checks. They do not confirm the status of the deal in front of you, and records and rules can change. Get current official confirmation and the relevant specialist advice before you rely on a claim.

Make the next decision with evidence.

Bring us the opportunity and the questions you cannot yet answer. We can discuss the local checks you need, alongside the legal, financial, environmental and technical work for your specialist advisers.

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