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Revealed: $300mn electricity scandal

Discussion in 'Jukwaa la Siasa' started by Mwakaleli, Mar 22, 2009.

  1. M

    Mwakaleli Member

    #1
    Mar 22, 2009
    Joined: Sep 23, 2008
    Messages: 46
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    As the public electricity power supply utility, TANESCO struggles with bail-out plans in order to avoid major power shedding expected to hit the nation by September this year, fresh details have emerged showing how the cash-strapped company missed a $300million power deal due to greed and battle for the control of big money running into billions of shillings.

    According to details from the financier - Barrick Tanzania - the project was suspended early in January this year after TANESCO - Tanzania Electricity Supply Company - failed to adhere to the financing conditions issued in order to ensure that the billions are not swindled by some corrupt top officials within the state-owned company.

    Barrick Tanzania had agreed to finance the $300million Mnazi bay power project, which could have produced 300megawatts, and forestalled the looming power crisis.

    According to inside information, Barrick Tanzania, being one of the potential clients of the proposed deal, was approached by
    TANESCO and Artumas through a Power Purchasing Agreement (PPA).

    Under this arrangement, Barrick, as a prospective client was to consider the possibility of investing in a generating company, TanGen, and recover its investment through sale of power under the Power Purchase Agreement.

    It is through this arrangement that Barrick Tanzania was ready to give the needed billions to finance the stalled project.

    Investigations conducted by The Guardian on Sunday have established that earlier, Barrick Tanzania, being alarmed by the financial mismanagement within
    TANESCO, gave the latter a condition that the two should open a joint venture account in order to manage the Sh390billion($300million).

    But for unknown reasons,
    TANESCO flatly rejected the proposal, insisting that it should be given full mandate to control the $300million.

    However, the move was strongly rejected by Barrick which among other things questioned the intention of
    TANESCO of declining to operate a joint venture account with the financier.

    A senior official from Barrick Tanzania who declined to be named citing the sensitivity of the current power debate told The Guardian on Sunday this week: ``I am surprised, they (
    TANESCO) are crying to buy $50million Dowans plants while they have failed to utilise a $300million deal from us…This is a shame.

    ``We were surprised to hear that
    TANESCO management wasn`t ready to agree with a very simple condition they were being given by Barrick…And this led us to think that perhaps there were hidden motives about our money.``

    After failure to agree on how to manage the billions which is close to the company`s annual revenue collections, Barrick Tanzania`s management decided to stop financing the project, casting a bleak future on the country`s energy sector.

    Surprisingly on February 21, this year, while tabling the financial recovery plan of Tanseco before the parliamentary committee responsible for overseeing all publicly owned corporations, the Company`s Managing Director, Dr. Idris Rashidi, told the committee that he wasn’t aware why Barrick Tanzania pulled out of the project.

    ``This has come as a surprise to us because we banked our hopes on this project…we were shocked to learn that the financier had pulled out of the
    project, `` the MD told the committee, indicating that he wasn’t aware why Barrick had pulled out at the final stages.

    But contacted for comment, the Minister for Energy and Minerals, William Ngeleja said: ``I have already started a process to rescue the project…It is true that the negotiations hit a snag recently, but I am working on it.

    ``I have organised a meeting on March 25 at my office that will involve all concerned parties - Barrick,
    TANESCO and ARTUMAS - to discuss how to rescue the plan.``

    The Minister went on: ``You know that in any deal there`s always disagreement about contentious issues but that can be sorted out…I will ensure that the country gets the 300 megawatts electricity as planned.”

    Source: Sunday Observer.
     
  2. U

    Ubungoubungo JF-Expert Member

    #2
    Mar 22, 2009
    Joined: Jul 28, 2008
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    sasa wanachosubiri kupata hilo dili na barrick(wakanada ambao benk zao uchumi wao hata haujatikisika kama US) ni nini? na kwanini walikataa kufungua akaunti ya pamoja? waliona hawataiba? jamani tupige kelele hili kama ni la ajabu lifichuke, huko tanesco kama kuna watu wachafu tuwatoe mkuku.
     
  3. A

    Alpha JF-Expert Member

    #3
    Mar 22, 2009
    Joined: Aug 30, 2007
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    Different day, same old Bullsh!t from Tanesco. What's new?

    I really don't know when this country is going to wake up?
     
  4. Nono

    Nono JF-Expert Member

    #4
    Mar 22, 2009
    Joined: Feb 11, 2008
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    Kikwete ndiye anaefahamu yote haya. Ndiye anaefahamu kwanini alimzuia MD Tanesco asijiuzulu, ndiye anefahamu kwanini tunahitaji kuendelea na mipango ya kununua Dowans, ndyiye anaefahamu kwanini mipango mipya ya kununua generator za 160 MW za tanesco zinatumia mafuta mazito badala ya gas. Tumekosa nini hasa sisi watanzania?
     
  5. Kite Munganga

    Kite Munganga JF-Expert Member

    #5
    Mar 22, 2009
    Joined: Nov 19, 2006
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    Ndiye aliyewatafuta Barrick na Ndiye aliyemwelekeza Idrisa kukataa joint venture account,lakini juzi kama nilimsikia kuwa wamewithdraw sababu ni global financial crisis?
     
  6. Andindile

    Andindile JF-Expert Member

    #6
    Mar 22, 2009
    Joined: Mar 18, 2009
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    Huyo Rashid anastahili kujihuruzu yaani hajui kwanini Barick walijitoa kwenye mradi! Anafikiri apemewa hiyo nafasi ili aleletewe taarifa ofisini kwa mradi mkubwa namna hiyo? Au ndio mbinu za kukwamisha mradi ili dowans wapate dili?

    Za mwizi ni always ni arobaini
     
  7. I

    Interested Observer JF-Expert Member

    #7
    Mar 22, 2009
    Joined: Mar 27, 2006
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    A corrupt president, he is quite, but would comment only on the Madagascar power struggle forgetting his own country which is going to the same direction.
    Hivi kama huyu Rais anazo taarifa kama hizi kwa nini asione kuwa ni priority na ku-seize opportunity kama hii? What is cooking on in this country?
     
  8. M

    MzalendoHalisi JF-Expert Member

    #8
    Mar 22, 2009
    Joined: Jun 24, 2007
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    Juzi JK BBC alisema ati Global Crisis ndo imefanya huu mradi uahirishwe!

    Na alisema ni uwekezaji mkubwa ktk umeme wa zaidi dola billioni 3 kule Mtwara
     
  9. D

    DawaKali Member

    #9
    Mar 22, 2009
    Joined: Oct 31, 2007
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    hmm! Ndio tulitonya kidogo kwenye hile topic ya Dr kwamba a lot of news is coming thru and something was brewing. There was no need kubwaga hii kitu kwasababu ilikua out of topic kidogo.

    Mambo ya wind yako mengi. Such as:

    7.11.2007 - 02:30pm ET

    Press release from: Barrick Gold Corporation

    Barrick Invests in Innovative Energy Projects in Chile, Tanzania

    (CSRwire) TORONTO, July 11, 2007

    Barrick Gold Corporation today announced plans to invest approximately US$68 million in projects that will harness the advantages of clean energy and enhance existing power infrastructure in Chile and Tanzania.

    In Chile, Barrick has today submitted a proposal to national environmental authorities to build a US$40 million wind farm, located in the Punta Colorada area of La Higuera, Coquimbo Region. The Punta Colorada wind farm project will feature 10 state-of-the-art wind turbines and contribute up to 20 megawatts of energy to Chile's national power grid. Once built, it will be the country’s largest source of wind-generated power, consistent with the Chilean government's efforts to promote the development of renewable energy sources.

    "The Punta Colorada wind farm project is an investment in the power of innovation," said President and CEO Greg Wilkins. "As part of Barrick's efforts to reduce greenhouse gas emissions, we are working on innovative energy strategies, while improving the efficiency of our mine sites."

    Barrick hired technical experts to develop baseline studies of the environmental and geographical conditions for the wind farm project. Technology will be supplied by Seawind Group, a leading international wind power firm.

    Barrick is also installing a 2 megawatt demonstration wind turbine near its Veladero mine in San Juan, Argentina which, when fully operational by year-end, will be the only turbine in the world operating at more than 4,000 metres above sea level.

    In western Nevada, Barrick has commenced construction of 1 megawatt solar energy farm adjacent to its 115 megawatt natural gas generating station. Together, these renewable energy projects are helping to diversify the company's energy matrix.

    In Tanzania, Barrick is financing a US$28 million project to bring electricity to parts of the remote Mara region of Tanzania, where the company's North Mara mine is located.

    The project, a partnership between Barrick and the Tanzanian government, is in line with the government's plan to bring electricity to 25 per cent of the population by 2010. Currently only 10 per cent of the country has access to electricity, largely in urban areas. This initiative will benefit both people and businesses in the area which currently have no access to electricity. Sourced primarily from hydro-electric power, the project will supply energy to a region that currently relies on diesel-generated electricity.

    "Barrick is pleased to partner with the Tanzanian government on an energy project that will significantly improve quality of life in North Mara and ensure a cost-effective electricity supply for our business," said Wilkins. "Bringing electricity to people and businesses in the region will be a tremendous catalyst for community development."

    Under the plan, Barrick will finance the construction of transmission lines to the North Mara community, which will connect the area to the national power grid by early 2009. The power lines will be operated and maintained by the country’s national utility, the Tanzania Electric Supply Company (TANESCO).

    Tanzania's Ministry of Energy and Minerals has expressed support for the public-private partnership and has encouraged other businesses to follow Barrick’s lead. In 2009, when the new hydro-electric power lines reach North Mara mine, energy costs will be reduced due to the higher cost of current diesel-generated power.

    Although North Mara will benefit from energy savings, vital electricity infrastructure will be in place long after the mine closes, ensuring lasting benefits to the local community. Construction on the new power lines will begin once an Environmental and Social Assessment is completed.


    Source: CSRwire

    For more information please contact:

    Vince Borg
    Barrick Gold Corporation
    416-307-7477
    Barrick Gold Corporation - Home
     
    Last edited: Mar 22, 2009
  10. D

    DawaKali Member

    #10
    Mar 22, 2009
    Joined: Oct 31, 2007
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    Or even:

    Serengeti Genesis
     
  11. U

    Ubungoubungo JF-Expert Member

    #11
    Mar 22, 2009
    Joined: Jul 28, 2008
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    uyu jamaa hana uchungu na nchi hii jamani, kikwete asubiri tu mwakani tutakavyomchallenge.
     
  12. 911

    911 JF-Expert Member

    #12
    Mar 22, 2009
    Joined: Aug 22, 2008
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    That last sentence of urs...Mkulu,NDIVYO TULIVYO...Love or hate it!
     
  13. U

    Ubungoubungo JF-Expert Member

    #13
    Mar 22, 2009
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    dawa yake mwakani. ajiandae kuumia moyo mwakani. kuna kazi nakwambia.
     
  14. Invisible

    Invisible Admin Staff Member

    #14
    Mar 22, 2009
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    Mmmh, labda!

    Muhimu ni kusisitiza elimu ya Uraia nchi nzima. Watanzania wajue effect ya kura yao katika uchaguzi
     
  15. Mwana wa Mungu

    Mwana wa Mungu JF-Expert Member

    #15
    Mar 22, 2009
    Joined: Aug 14, 2008
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    aroo invisible, hamna haja ya elimu ya uraia tena hapa, silaha nzuri ya kustrike hawa jamaa ni matatizo ya wananchi yasiyoisha, unajua hata watu wa kijijini sasahivi ukienda, wanaona jamaa hawafai kwasababu kuna matatizo hadi watu wanatamani wasingezaliwa duniani hapa, hakuna pesa, nguvu wanazo lakini hamna sehemu ya kufanya kazo. wengine wamesomesha watoto wao hadi chuo lakini hamna ajiri, walitarajia watoto wao waje wawasaidie, wanashangaa wanaambiwa wachangie, sijui wanafukuzwa etc. sisi tuliosoma ambao tuna connection na vijijini,lazima turudi kuwaambia hivyo. ukimwambia hivyo balozi wa nyumba kumi mmoja tu, wataendeleza kampeni hiyo nakwambia kitu kikubwa kinaweza kufanyika. we subiri tu.
     
  16. BAK

    BAK JF-Expert Member

    #16
    Mar 22, 2009
    Joined: Feb 11, 2007
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    Revealed: $300mn electricity scandal

    2009-03-22 10:26:58

    By Staff Writer


    As the public electricity power supply utility, Tanesco struggles with bail-out plans in order to avoid major power shedding expected to hit the nation by September this year, fresh details have emerged showing how the cash-strapped company missed a $300million power deal due to greed and battle for the control of big money running into billions of shillings.

    According to details from the financier - Barrick Tanzania - the project was suspended early in January this year after Tanesco - Tanzania Electricity Supply Company - failed to adhere to the financing conditions issued in order to ensure that the billions are not swindled by some corrupt top officials within the state-owned company.

    Barrick Tanzania had agreed to finance the $300million Mnazi bay power project, which could have produced 300megawatts, and forestalled the looming power crisis.

    According to inside information, Barrick Tanzania, being one of the potential clients of the proposed deal, was approached by Tanesco and Artumas through a Power Purchasing Agreement (PPA).

    Under this arrangement, Barrick, as a prospective client was to consider the possibility of investing in a generating company, TanGen, and recover its investment through sale of power under the Power Purchase Agreement.

    It is through this arrangement that Barrick Tanzania was ready to give the needed billions to finance the stalled project.

    Investigations conducted by The Guardian on Sunday have established that earlier, Barrick Tanzania, being alarmed by the financial mismanagement within Tanesco, gave the latter a condition that the two should open a joint venture account in order to manage the Sh390billion($300million).

    But for unknown reasons, Tanesco flatly rejected the proposal, insisting that it should be given full mandate to control the $300million.

    However, the move was strongly rejected by Barrick which among other things questioned the intention of Tanesco of declining to operate a joint venture account with the financier.

    A senior official from Barrick Tanzania who declined to be named citing the sensitivity of the current power debate told The Guardian on Sunday this week: ``I am surprised, they (Tanesco) are crying to buy $50million Dowans plants while they have failed to utilise a $300million deal from us…This is a shame.


    ``We were surprised to hear that Tanesco management wasn`t ready to agree with a very simple condition they were being given by Barrick…And this led us to think that perhaps there were hidden motives about our money.``

    After failure to agree on how to manage the billions which is close to the company`s annual revenue collections, Barrick Tanzania`s management decided to stop financing the project, casting a bleak future on the country`s energy sector.

    Surprisingly on February 21, this year, while tabling the financial recovery plan of Tanseco before the parliamentary committee responsible for overseeing all publicly owned corporations, the Company`s Managing Director, Dr. Idris Rashidi, told the committee that he wasn't aware why Barrick Tanzania pulled out of the project.

    ``This has come as a surprise to us because we banked our hopes on this project…we were shocked to learn that the financier had pulled out of the
    project, `` the MD told the committee, indicating that he wasn't aware why Barrick had pulled out at the final stages.

    But contacted for comment, the Minister for Energy and Minerals, William Ngeleja said: ``I have already started a process to rescue the project…It is true that the negotiations hit a snag recently, but I am working on it.

    ``I have organised a meeting on March 25 at my office that will involve all concerned parties - Barrick, Tanesco and Artumas - to discuss how to rescue the plan.``

    The Minister went on: ``You know that in any deal there`s always disagreement about contentious issues but that can be sorted out…I will ensure that the country gets the 300 megawatts electricity as planned."


    The revelations come after three weeks of a verbal wrangle between prominent leaders, focused on accusations and counter-accusations over an alleged hidden agenda on the proposed 60bn/- Dowans takeover, a situation that has opened the floodgates of mudslinging politics.

    The two parliamentary committees - the one led by legislator Kabwe and the other chaired by fellow legislator William Shelukindo - have strongly differed on the Dowans deal, raising a heated debate during the past few weeks.

    The company currently purchases about 59 percent of its power from private producers, which according to financial details eats up to 83 percent of the total revenue collected annually.

    With dilapidated infrastructure built mainly during the 1970s, the company`s power supply capacity is estimated at 595 megawatts. This year, the actual demand is 787 megawatts - creating a deficit of 192 megawatts.

    According to available details, the company has only 670,000 customers.

    Last year, the company planned to increase its customer base by about 100,000, but the target couldn't be reached due to financial straints.

    Still, based on the current economic growth, demand for electricity is estimated to increase by 15 percent annually, while the production capacity continues to dwindle due to various technical and non-technical factors.

    Since there are no comprehensive power generating plans in 2010, the power deficit will surge to 300 megawatts, putting the country at risk of facing an even worse phase of power rationing.

    Currently, the state-owned company needs about $200m for major repairs on its dilapidated infrastructure, but so far there's nowhere to get the money from.

    Just two years ago, the company borrowed $300m from a consortium of local banks at 10 percent interest per annum, but almost 80 percent of that money was spent on settling outstanding debts.


    Currently according to the inside details, Tanesco is on the brink of collapse due to the heavy costs of operations, largely attributed to capacity charges.

    In 2004, the company paid 43/- to private power producers for every 100/- it collected in revenue. By 2006, when dubious government deals were made with private companies, that figure had more than doubled, to 104/- for every 100/- collected, according to the parliamentary committee presentation.

    In 2007/08, the company spent 83/- for every 100/- it collected to foot the bill of power generated by private producers, but this year, the figures will soar even higher - to 106/- for every 100/- collected, according to the financial recovery plan seen by The Guardian on Sunday.

    In other words, 83 percent of the total revenue collected by the state-owned utility company will go to private power producers, leaving the company in dire financial straits.

    Over the past two years, the company`s revenue collection has spiked by 122 percent, reaching 437bn/-, a year up from 196bn/- in 2006.

    Today, the company`s electricity loss - meaning the amount of energy lost when transmitted from point A to point B - is 24 percent, a staggering amount when compared to countries like South Africa where that loss is below 4.5 percent.
    SOURCE: Sunday Observer
     
  17. M

    Mbalamwezi JF-Expert Member

    #17
    Mar 22, 2009
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    Bubu, source ni Sunday Observer au The Guardian on Sunday? He bu tafuta latest toka kwenye source zako The EastAfrican plz.
     
  18. BAK

    BAK JF-Expert Member

    #18
    Mar 22, 2009
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    Nimeichukua hiyo toka IPP MEDIA, Sunday Observer.
     
  19. M

    MiratKad JF-Expert Member

    #19
    Mar 22, 2009
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    After all this, how are the Management of TANESCO still in place? Someone, somwhere is not doing their jobs for the public. It is in the public interest for them to go NOW.
     
  20. Kaa la Moto

    Kaa la Moto JF-Expert Member

    #20
    Mar 22, 2009
    Joined: Apr 24, 2008
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    Tanesco nayo sasa ni kama tool inayotumika kwa ufisadi kwenye nchi yetu. Ni bora ife tuunde nyingine ambayo itakuwa safi mbali na uoza huu
     
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