Tanzania Electric Supply Company Limited (Tanesco) Managing Director William Mhando addresses journalists on the power situation in the country in Dar es Salaam on Thursday Left is the Permanent Secretary in the Ministry of Energy and Minerals, Mr Eliakim Maswi. (Photo by Fadhili Akida)
Addressing reporters in Dar es Salaam on Thursday, TANESCO Managing Director Mr William Mhando said the US 13.5m dollars (approx. 21.6bn/-) generators have capacity to produce 18 Megawatts for supply to Mtwara and Lindi regions.
“We will be receiving the generators officially tomorrow (today) and assume operations thereafter,” he said. Mr Mhando noted that power infrastructure in the two regions is in bad shape and his company would embark on repairs and renovations immediately.
Mtwara Regional Commissioner, Ms Simba Kalia is expected to officiate at the handing over ceremony scheduled to take place in Mtwara town. Wentworth Resources which purchased 100 per cent share of the Mtwara Power Plant from Artumas Group announced the sale of its subsidiary to TANESCO.
According to a statement posted on its website, the company was off-loading its 100 per cent ownership of the18MW plant to the state power firm, including gas-fire power plant and associated assets. Wentworth Managing Director, Geoff Bury, commented saying the sale and purchase of the power plant is beneficial to both parties.
Meanwhile, TANESCO is expected to secure a 208bn/- loan for emergency power plan from three banks, according to Managing Director, Eng William Mhando. The emergency plan seeks to generate some 572MW for the national grid, to address recurring power shortages caused by dependence on hydro-power plants.
Mr Mhando told a press conference in Dar es Salaam yesterday that discussions with Citi Bank Tanzania, National Bank of Commerce (NBC) and National Microfinance Bank (NMB) had reached a conclusive stage.
“There were a few issues to be tackled, we met with the bank consortium today (yesterday) and we managed to strike a consensus. We’ll get the money very soon,” said Mr Mhando who was flanked by Permanent Secretary in the Ministry of Energy and Minerals, Mr Eliakim Maswi.
Mr Maswi led the government team in the negotiations, which included officials from the Treasury. The government would be the guarantor in the multi-million credit.
Earlier, the Parliamentary Committee on Energy and Minerals, led by Bumbuli MP, Mr January Makamba (CCM), had expressed concern over the delayed funding of emergency power projects launched by the government late last year.
In another development, Mr Maswi refuted claims that TANESCO owes Aggreko Tanzania, some 269bn/- in power generation arrears.
“The amount is drawn from a number of projects, not Aggreko alone. In fact, part of the amount is supposed to be paid to Independent Power Tanzania Limited (IPTL).
However, it cannot be paid at present as there is a civil case pending in court,” the PS explained. Mr Maswi clarified that TANESCO is supposed to pay 79bn/- only to private power producers Aggreko and Symbion, as well as oil marketing companies Camel Oil and Oryx.
On the present status of power generation, the PS said production was sufficient to feed the national grid, saying it stood at 646MW as of yesterday.
Total installed capacity of power generation plants in Tanzania is 1,270MW while the highest demand during the first quarter of this year was 829MW. He allayed fears that the country would sink into darkness again, saying the current power outages stemmed from the aged electricity supply network.
Reacting, the Vice-Chairperson of the parliamentary committee, Mr Amos Makala (Mvomero-CCM), said they were satisfied with the government’s report on TANESCO.
Source Tanzania Daily News
