The cable, which will be officially switched on by President Jakaya Kikwete, is expected to fundamentally change much of the underlying economics of the communications business.
The country is one of three in sub-Saharan Africa that will benefit from the credit, amounting to $151 million, approved last week by the World Bank's board of executive directors.
The International Development Association (IDA) is a financial arm of the World Bank.
Read more: Tanzania: World Bank's U.S. $100 Million to Lower ICT Cost
In yet another sign the stalled project is still choking silently with differences over its implementation, two Zanzibar government officials recently distanced the Isles from the 37-year-old project.
Chief Secretary Philemon Luhanjo said, “We are creating an e-government that will be operational soon and it will drastically change the way we do things and manage our resources.”
Mr Luhanjo said that the e-governance will increase the speed of conducting business in government departments, simplify some of the financial procedures and make government machinery more transparent to the public.
Read more: Tanzania: Faster and better services with e-governance in Daressalam
“As we prepare to venture into the application of e-government, we are improving the record management systems for all ministries, departments and agencies in the country,” he said.