Policy paper

Tanzania and Global Clean Power Alliance finance mission: action plan

Updated 23 June 2026

The Global Clean Power Alliance (GCPA) Finance Mission is a timebound initiative, backed by a coalition of donor countries, philanthropies and delivery partners^{[footnote 1]}. It is designed to respond to specific requests for assistance from its Emerging Markets and Developing Economies (EMDE) partners, collaborating with them to ensure they have the right people, tools and capabilities to undertake high quality energy investment planning^{[footnote 2]}, and to build a pipeline of bankable projects to accelerate the implementation of clean energy transition goals.

The Government of Tanzania (GoT) has outlined its commitments in developing the energy sector through the development of the 2025 Mission 300 National Energy Compact. The Compact objectives include: 100% electricity accessibility by 2030; increased connectivity (75% by 2030); increased renewable energy sources (75% by 2030); adoption of clean cooking energy solutions (75% by 2030); and greater private sector engagement towards its clean energy transition. Implementing the National Energy Compact is a GoT priority, in addition to the National Clean Cooking Strategy (2024-2034). Financing the implementation of the National Energy Compact is through GOT (own resources); partnerships and mobilisation of private finance.

Responding to specific requests for assistance from the Government of Tanzania, the GCPA Finance Mission and its partners commit to Tanzania both Mainland and Zanzibar (hereon referred to as GoT) to support its endeavours to implement the following initial set of priority clean energy actions from 2026 to 2027 in continued partnership and consultation with Government Ministries responsible for energy from both Governments (URT and Zanzibar):

1. Mission300 Compact Implementation

• Provide flexible and tailored support to the GoT for the implementation of its Mission300 Energy Compact. This could be through amongst other options secondments of private finance experts to the Compact Delivery Unit; advising on best practice in the creation of Compact Delivery Unit governance; or supporting the Compact Delivery Unit with access to technical assistance to address policy barriers for private capital mobilisation and to implement the action plan for the outlined options.
• Other forms of support to be agreed in accordance with country priorities.

2. Support to private capital mobilisation for transmission:

• Provide technical assistance, amongst other forms of support, towards the implementation of the GoT led- and World Bank proposed- Roadmap for Private Sector Participation in Electricity Transmission.
• Support the GoT with a review of the enabling policy, regulatory, and legal framework for transmission PPPs in Tanzania, recommending improvements to ensure the sustainable and consistent development of the transmission system. Assess regulatory approaches for transmission PPP renumeration, and provide recommendations on the development of legal frameworks to facilitate wholesale market competition and participation in the East Africa Power Pool.
• Upstream support may include legal and regulatory review and revision and support to evaluate the range of risk-mitigation instruments available to the GoT to manage risk sharing with the private sector. Project level support may include identifying 3-5 priority transmission lines including one interconnector, project structuring, developing PPP models and bankable ITP structures, financial analysis, market sounding, preparing tender documents and procurement and transaction advisory.
• Other forms of support to be agreed in accordance with country priorities.

3. Support to private capital mobilisation for generation:

• Provide technical assistance to support the GoT to develop a public-private partnership (PPP) Tender Strategy and Framework for renewable energy power projects and prepare recommendations to improve the legal and regulatory frameworks for attracting private investment to renewable energy power projects.
• Make recommendations to improve tender documents, contractual agreements and financial agreements. This may include recommendations on procurement process, bidding approach, and updating and reviewing tender documentation to facilitate greater private finance participation in the energy market.
• Provide recommendations on the conditions, incentives and support that should be offered by the GoT to promote the successful implementation of renewable energy tenders to facilitate greater flows of international finance, including on contractual arrangements and required payment security and guarantees package.
• Other forms of support to be agreed in accordance with country priorities.

4. Targeted project readiness support:

• Advance a pilot ITP project in mainland Tanzania, providing support to financial and legal arrangements to ensure identified project acts as a pathfinder for future ITPs.
• Advance a pilot RE generation project in Zanzibar.
• Other forms of support to be agreed in accordance with country priorities.

5. Private finance capacity and capability-building:

• Deliver targeted capacity-building to the Ministry of Energy, Public-Private Partnership (PPP) Centre, Ministry of Finance, and other sector institutions, emphasizing practical, project-based learning and the review of transaction documents.
• Support the GoT with flexible access to private finance training, learning and expertise through the GCPA Finance Mission private finance delivery partner(s).
• Other forms of support to be agreed in accordance with country priorities.

6. Clean energy financing:

• GCPA Finance Mission and its partners to work with the GoT to support identification, attraction and mobilisation of private and concessional finance through bilateral and multilateral instruments.
• Other forms of support to be agreed in accordance with country priorities.

The GCPA Finance Mission will coordinate and support implementation of the activities, working with the World Bank and Green Finance Institute, in close partnership with the GoT and existing efforts in country. The Commissioner for Electricity and Renewable Energy within the Ministry of Energy will be the Tanzanian focal point for this Programme for mainland. The Director of Planning, Policy and Research at the Ministry of Water, Energy and Minerals will be the focal point for this Programme in Zanzibar. At all times, the GCPA Finance Mission will work in the spirit of equal partnership, collaboration and respect with Tanzania. The GCPA Finance Mission will always endeavour to work flexibly with Tanzania’s existing activities, particularly the National Energy Compact, and delivery partners to ensure its activities are well coordinated, additional and complementary. The GCPA Finance Mission will always seek to mobilise and work with local expertise, resources and capacities wherever possible.

This Action Plan will remain in force, regularly updated when needs arise and agreed upon by both parties and in line with priorities of the GoT. A formal review and update of the Action Plan will take place by COP31.

1. See Global Clean Power Alliance: organisations finance statement - GOV.UK ↩

2. In line with the GCPA Finance Mission’s Roadmap on High Quality Energy Investment Planning. ↩