Tanzania has recorded a steady economic growth rate of 6 to 7% every year, and has aimed at realizing a strong economy by indicating the direction of the country's development in the “Tanzania Development Vision 2025”. “The Tanzania Five Year Development Plan” announced in June 2011 attempts to take advantage of the country's natural gas and mineral resources, sets a goal of shifting the focus of economic base from agriculture to industry and aims for development of key infrastructure. In 2007, the Government of Tanzania developed the Power System Master Plan (PSMP) which anticipates the next 25 years from 2008 to improve the situation. The plan was updated in 2009 with the assistance of consultants in technical areas. Advance reinforcement of power generation facilities and upgrading of key transmission line is ongoing. In the PSMP updated in 2012, the Ministry of Energy and Minerals (hereafter ""MEM""), TANESCO and Tanzanian government officials formulated a master plan that continued to 2035 in accordance with technical updates. (TANESCO stands for Tanzania Electric Supply Company Limited, which single-handedly supplies electricity to all of Tanzania with the exception of Zanzibar Island.)

However, the PSMP 2012 is inadequate in terms of its power demand estimation, power supply development, and system analysis and planning in addition to its reliance on premature methods. Therefore, proper update and establishment of update method unique to Tanzania is needed in order to stabilize the quality and quantity of power supply considering TANESCO's current financial distress. As increase in demand for electricity due to the economic development is expected to continue in Dar es Salaam, the largest commercial city in Tanzania and accounts for 10% of population and nearly 50% of the country's demand, the Government of Tanzania aims for strategic national policy which focused on shifting its commerce and industry to the adjacent coastal area. JICA implemented a study on “Rehabilitation of Power Distribution Facilities in Major Cities of Tanzania in 2002 and formulated the master plan for upgrading the power transmission and distribution system in Dar es Salaam, Arusha, and Kilimanjaro. However, the plan has not been updated since then, and fully reflected the recent power demand in Dar es Salaam where the economy has considerably been developing in recent years. Therefore, it is necessary to prepare for a master plan which fully reflects the future power demand and includes the expansion, rehabilitation, and new plans for the power transmission and distribution systems in the Dar es Salaam region including the coastal area. Under these circumstances, the Government of Tanzania has requested Japan for technical assistance to enhance the capacity for preparation of the PSMP.