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Govt: USD700m ready for Mnazi-Bay power generation

Discussion in 'Jukwaa la Siasa' started by nngu007, Jun 29, 2011.

  1. nngu007

    nngu007 JF-Expert Member

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    Jun 29, 2011
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    By In2EastAfrica - Wed Jun 29, 11:00 am
    [​IMG]
    Permanent Secretary in the Ministry of Energy and Minerals, Mr David Jairo


    Exim Bank of China has submitted a USD700m proposal to the government to fund the 160MW Mnazi-Bay gas-to-electricity project, a clear indication that the venture will take off as planned, Energy and Minerals ministry permanent secretary David Jairo has said.

    He told The Guardian in a telephone interview that the submission is in response to a government application to the bank for the loan.

    The positive response is a clear sign that the Tanzanian government is on the "right track" in its fund sourcing quest for Mnazi Bay gas-for-electricity in Mtwara to take off, Jairo said.

    "By itself, that's a good sign that the project would be implemented as planned," the PS said.

    The government had applied for a USD700m loan from the Chinese bank to finance the project as one of the short-term measures aimed at resolving the prolonged power crisis.

    According to the permanent secretary, in the proposal, the bank also gives details on the loan-issuing mechanism and conditions.

    However, he would not disclose the contents of the bank's proposal saying: "I am not in a position to give the details of the document, because I have not seen the proposal…but I am certain they have already presented it to the Treasury."

    Since the Treasury has all the technical and financial details on the planned power project, it may decide to go with the proposal independently, negotiate with the bank and enter a deal.

    "Alternatively, the Treasury may form a task force comprising experts and officials from sector ministry (Energy and Minerals) to negotiate with the Chinese bank…both options can be used, but what we want is money for implementing this project (Mnazi Bay project)," he said.

    According to the PS, the government has already allocated the domestic package (15 per cent of the total investment).

    "At the moment talks between the government and the bank on the project's financing are going on well and are now at an advanced stage," Jairo said without disclosing when the discussions will be concluded.

    The project will be implemented by Tanesco, but is likely to have other stakeholders, including, Artumas, a private power firm based in Mtwara and the Tanzania Petroleum Development Corporation (TPDC).

    Artumas and TPDC own the gas infrastructure that the key implementer, Tanesco expects to use in undertaking the project.

    "Once the loan is secured, the Treasury will transfer the money over to Tanesco so that implementation can start immediately," the PS said.

    If all goes well, he said implementation of the project is expected to kick off at the end of this year.

    "Implementation of short-term strategies such as the Mnazi Bay gas project will be a big boost to the daily power supply capacity, thus off-setting existing shortage," he concluded.
    By Judica Tarimo, The Guardian
     
  2. GeniusBrain

    GeniusBrain JF-Expert Member

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    Halafu watu hapa wa Magwanda utaona majibu yao yalivyokuwa hayana akili, haya ngoja uwaone hao waliomsaliti YESU
     
  3. Lu-ma-ga

    Lu-ma-ga JF-Expert Member

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    Umesahau kuwa huyo ni Ngeleja, leo anakuambia mgao wa umeme ni wiki mbili tu, baadae anakuja na mpya akisema mgao hauna muda maalum.Juzi kasema kampuni la kichina limechukua kuendesha mradi wa Kiwila Coal Mining, jana kaja na mpya kuwa mradi utaendeshwa na serikali ila mkopo wa masharti nafuu unatoka china.Yetu masikio, tutarudi kukukumbusha uozo wa ngeleja.kaa mkao kamili
     
  4. nngu007

    nngu007 JF-Expert Member

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    Jun 29, 2011
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    Electricity is of two kinds, positive and negative. The difference is, I presume, that one comes a little more expensive, but is more durable; the other is a cheaper thing, but the moths get into it. Our beloved Country always keeps the negative kind as it is easy for moths get into it as they only care for their GAMBA's...
     
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