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Tanesco finally stops payments to Dowans
2008-08-05 10:03:10
By Correspondent Felister Peter
The Tanzania Electric Supply Company (Tanesco) has officially stopped consuming power and paying the daily 183m/- capacity charges to Dowans Tanzania Ltd, following the official termination of their contract on Friday.
This was revealed yesterday by the state-owned power firm`s Public Communication Manager, Badra Masoud, in an interview with The Guardian in Dar es Salaam.
``There have been no further payments to Dowans since August 1 this year. Tanesco is no longer consuming power generated by Dowans,`` said Masoud.
She repeated earlier remarks by Tanesco officials that the firm no longer needs additional sources of electricity because its own power-generating plants can meet existing demand.
However, she would not be drawn into saying whether they have received any court summons following Dowans` reported decision to file a case against Tanesco after the latter company`s contract termination notice.
Dowans and Tanesco entered into the contract after Richmond Development Company LLC failed to generate 100MW, as agreed on June 23, 2006.
The contract was floated after power-generation dams ran dry following prolonged drought.
Tanesco managing director Idris Rashid announced at a news conference in Dar es Salaam in June that his company had decided to terminate its emergency power generation contract with Dowans.
He said his firm planned to decommission the services of Dowans with effects from this month after finding out that the manner in which the contract with Richmond was reached violated the Public Procurement Act.
Dr Rashid explained that the contract between Tanesco and Richmond had no legal mandate and the transfer of the contract from REDVO to Richmond and later on to Dowans Holding SA Limited and eventually to Dowans Tanzania Ltd did not conform to the terms of the contract and was therefore illegal.
According to Dr Rashid, Dowans was generating 100MW but Tanesco had already installed its own 100MW plant and was no longer in need of outside assistance.
The Public Procurement Regulatory Authority (PPRA) was later quoted as saying high-ranking government officials had remarkably influenced the awarding of the tender to Richmond.
However, Richmond failed to generate the 100MW agreed under the contract although it continued to be paid a daily 152m/- in capacity charges.
Surprisingly, the Prime Minister`s Office still decided to extend the Richmond deal.
However, National Assembly Speaker Samwel Sitta on October 11, 2007 formed a special House committee chaired by Kyela legislator Harrison Mwakyembe to investigate the circumstances that made the government enter into the contract.
The committee presented its report in the House in February 2008, declaring that Richmond lacked the experience, expertise and financial capability for carrying out the task.
Then prime minister Edward Lowassa resigned alongside former ministers Nazir Karamagi (Energy and Minerals) and Dr Ibrahim Msabaha (East African Co-operation), citing political accountability over the scam.
SOURCE: Guardian
Je mpaka hapo TANESCO ilishalipa jumla ya shilingi ngapi tangu mkataba uanze?
2008-08-05 10:03:10
By Correspondent Felister Peter
The Tanzania Electric Supply Company (Tanesco) has officially stopped consuming power and paying the daily 183m/- capacity charges to Dowans Tanzania Ltd, following the official termination of their contract on Friday.
This was revealed yesterday by the state-owned power firm`s Public Communication Manager, Badra Masoud, in an interview with The Guardian in Dar es Salaam.
``There have been no further payments to Dowans since August 1 this year. Tanesco is no longer consuming power generated by Dowans,`` said Masoud.
She repeated earlier remarks by Tanesco officials that the firm no longer needs additional sources of electricity because its own power-generating plants can meet existing demand.
However, she would not be drawn into saying whether they have received any court summons following Dowans` reported decision to file a case against Tanesco after the latter company`s contract termination notice.
Dowans and Tanesco entered into the contract after Richmond Development Company LLC failed to generate 100MW, as agreed on June 23, 2006.
The contract was floated after power-generation dams ran dry following prolonged drought.
Tanesco managing director Idris Rashid announced at a news conference in Dar es Salaam in June that his company had decided to terminate its emergency power generation contract with Dowans.
He said his firm planned to decommission the services of Dowans with effects from this month after finding out that the manner in which the contract with Richmond was reached violated the Public Procurement Act.
Dr Rashid explained that the contract between Tanesco and Richmond had no legal mandate and the transfer of the contract from REDVO to Richmond and later on to Dowans Holding SA Limited and eventually to Dowans Tanzania Ltd did not conform to the terms of the contract and was therefore illegal.
According to Dr Rashid, Dowans was generating 100MW but Tanesco had already installed its own 100MW plant and was no longer in need of outside assistance.
The Public Procurement Regulatory Authority (PPRA) was later quoted as saying high-ranking government officials had remarkably influenced the awarding of the tender to Richmond.
However, Richmond failed to generate the 100MW agreed under the contract although it continued to be paid a daily 152m/- in capacity charges.
Surprisingly, the Prime Minister`s Office still decided to extend the Richmond deal.
However, National Assembly Speaker Samwel Sitta on October 11, 2007 formed a special House committee chaired by Kyela legislator Harrison Mwakyembe to investigate the circumstances that made the government enter into the contract.
The committee presented its report in the House in February 2008, declaring that Richmond lacked the experience, expertise and financial capability for carrying out the task.
Then prime minister Edward Lowassa resigned alongside former ministers Nazir Karamagi (Energy and Minerals) and Dr Ibrahim Msabaha (East African Co-operation), citing political accountability over the scam.
SOURCE: Guardian
Je mpaka hapo TANESCO ilishalipa jumla ya shilingi ngapi tangu mkataba uanze?