MCC’s $694.5 million Tanzania Compact (2008-2013) funded the $199.5 million Energy Sector Project and the $64.6 million Zanzibar Interconnector Activity. This activity aimed to address the high frequency of blackouts on the main island of Zanzibar (Unguja) by installing a new submarine cable and new overhead power lines as well as adding capacity to a power substation. The activity was based on the theory that more reliable and better-quality electricity would increase investment and economic activity, reduce the costs of poor power quality, and create social gains in education and health.