An appraisal of investment vehicles in the Tanzania's electricity sector

Abstract Investment in Tanzania's electricity sector can be made through five different vehicles: the state-owned utility company TANESCO, independent power producers (IPPs), emergency power producers (EPPs), small power producers (SPPs), and public-private partnerships (PPPs). This research examines the role and performance of these vehicles, in light of massive power infrastructure investment needs in Tanzania. We analyse the investment vehicles' historical performance in attracting generation investment and their likely role in the coming years. The paper also discusses the implication of recent natural gas discoveries for investment in Tanzania's power generation sector.