ZECO has issued a solar tender for an 18 MW photovoltaic facility to be developed in Makunduchi, with a focus on strengthening the region's renewable energy framework. Funded by the World Bank under the ZESTA initiative, the project aims to address rising electricity needs and promote clean energy expansion in Zanzibar.
Details of the Solar Tender
Zanzibar Electricity Corporation (ZECO) has officially launched a tender for an 18 MW solar project. The project is set to be established in Makunduchi, a southern region of Zanzibar. The solar tender seeks contractors to design, supply, and install a solar photovoltaic (PV) plant and its associated infrastructure. This project is part of the Zanzibar Energy Sector Transformation and Access Project (ZESTA), financed by the World Bank.
The successful contractor will be responsible for a wide range of activities, including designing, constructing, testing, and commissioning the plant. In addition, the contractor will manage the operation and maintenance (O&M) of the plant for an initial three years, thus ensuring smooth and efficient operation. A key component of the contract is providing training for ZECO staff to ensure that local expertise is built to maintain the solar infrastructure in the long term.
The 18 MW solar project will be established on government-owned land in Makunduchi. The site has been carefully selected, with good road access and a substation nearby to facilitate grid connection. The project timeline includes 12 months for construction, which will be followed by 36 months dedicated to the O&M phase.
Application and Eligibility
The bidding process follows a single-stage, two-envelope system in accordance with the World Bank's procurement regulations. Interested bidders can purchase the bidding documents for $250 or TZS 600,000 from ZECO’s office. Payments can be made in either Tanzanian Shillings or U.S. Dollars through designated accounts.
All bids must include an unconditional bid security of $250,000 issued by a reputable commercial bank. Bidders must submit their applications by January 31, 2025. Late submissions or electronic applications will not be considered. A mandatory pre-bid meeting and site visit will occur on January 13, 2025, in Makunduchi. Participants must attend this event to qualify for the bidding process.
Local Economic and Environmental Impact
This solar project aligns with Zanzibar’s energy strategy and Tanzania’s national renewable energy goals. By the end of 2023, Tanzania’s installed solar capacity was 16 MW. This initiative will more than double that capacity, thereby boosting the country’s energy independence and sustainability.
By investing in solar PV technology, Zanzibar aims to diversify its energy sources and reduce its reliance on fossil fuels. The project will also contribute to minimizing carbon emissions, further advancing the region’s commitment to sustainable energy practices and global climate goals.
The Makunduchi solar project is expected to generate numerous benefits for Zanzibar. Not only will it strengthen the region’s energy security, it will also create job opportunities and provide training for local workers. By involving ZECO’s personnel in the operation and maintenance training, the project ensures that local capacity is built, supporting long-term sustainable management of the solar facility.
A Broader Push for Solar in Tanzania
Zanzibar’s initiative is part of a broader trend in Tanzania, where solar energy is seen as a cost-effective solution for electricity access in remote areas. A report from the National Bureau of Statistics (NBS) and Statistics Norway (SSB) highlights the challenges Tanzanian households face connecting to the national grid. This is especially true in rural areas, where high connection costs due to additional infrastructure such as transformers are common.
In rural regions, only 36% of households have access to the national grid. As a result, solar power is often the only viable option. The NBS and SSB report notes that while solar power remains the most affordable and accessible energy source for remote areas, it also offers a highly efficient solution for those unable to connect to the grid.
This growing reliance on solar energy is being mirrored in Zanzibar’s renewable energy development strategy, which is focused on meeting the energy demands of both urban and rural populations. The country is focused on expanding solar capacity to generate power. It is also committed to ensuring that this power reaches all corners of Tanzania, including the most remote communities.