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Dutch govt threatens REA grant withdrawal
By The guardian reporter
31st May 2015
The Dutch government has threatened to prematurely terminate grant arrangement of Euro 16.6mln (Sh38bn) with Tanzania meant for the project dubbed ‘Electrifying Rural Tanzania' after delays of the government to provide sufficient budget for its implementation.
Reliable sources have told the Guardian on Sunday that The Netherlands Enterprise Agency has informed the Permanent Secretary, Ministry of Finance, Dr Servacius Likwelile that they will take the same measure if the project has not started before July 01, 2015 and reclaim the grant already disbursed.
"We would like to express our concerns regarding the progress of the project ‘Electrifying Rural Tanzania'," said Tamar Schrofer Coordinator ORIO on behalf of the Minister of Foreign Trade and Development Cooperation of the Dutch government, according to the source.
On September 14, 2012 the Dutch government and the Ministry of Finance signed a grant arrangement for the project.
According to Schrofer, the grantee is committed to quickly and energetically commence the execution of the grant arrangement and make every possible effort to ensure the timely and full implementation of the project and/ or coordinate with other organisations involved ---and ensure timely allocation of sufficient resources, competent staff and grant payment to the project, said the source.
He said further: "in addition to the grant, residual financing for the implementation phase and the operation and maintenance phase to the amount of Euro10,172,195 (Sh23,290,408,907.97) and Euro 6,205,704 (sh14,208,672,142.23)respectively will be supplied by the Ministry of Energy and Minerals with approval of the Ministry of Finance .
According to the source, the ORIO coordinator, Schrofer referred to the letter from the Energy ministry which stressed that the project was amongst the highly prioritised in the government's energy development plan for the financial year 2013/2014 and that the Finance Ministry assured ORIO that the financial matters was about to be solved.
"But since our previous letter dated 29 October 2014, this project has still not commenced," our source quotes Schrofer as saying in a letter to the Permanent Secretary, Ministry of Finance, adding: "ORIO notifies you formally that if no sufficient budget has been available and the project has not started before July 1 this year, ORIO will on the basis of clause 10.4 of the grant arrangement prematurely terminate the arrangement and reclaim the grant already disbursed."
But Schrofer warned further that if ORIO hasn't received reaction before June 1 this year, they will start the procedures to terminate the grant arrangement, our source said.
Earlier reports had it that in February 2014, the Ministry of Energy and Minerals committed itself that the project was amongst the highly prioritised in the energy development plan for the financial years 2013/14 and that it was under the Big Result Now Initiative (BRN).
It said further that the project was important towards supporting government's targets of increased access for electricity to 30 per cent by this year.
Reports detailed that the government has budgeted Sh22bn which is 50 per cent of its required contribution to facilitate implementation of the project.
The project is meant for electricity generation and extending distribution networks in the rural districts of Biharamulo, Mpanda and Ngara.
But reports from within government circles, say that already the government has started working on the matter and will soon resolve all the said resources as per grant arrangement.
Some members of Parliament have vowed to block the Energy Ministry and the ministry of finance budgets if their REA projects have not been implemented.
SOURCE: GUARDIAN ON SUNDAY
CC: Tized, Mr Rocky, Fixed Point, lyinga, NATA, Chakaza, Elly B, Ablessed, Michelle, everlenk, KikulachoChako, Emma, EMT, Daudi Mchambuzi, Arushaone, MziziMkavu, Ablessed, afrodenzi, Heaven on Earth, Power to the People, Jasusi, Eiyer, idawa, nguruvi, Mentor, Sikonge, Dingswayo, MANI, tpaul, Bramo, Bulesi Bulldog, Sangarara, MTAZAMO, Erythrocyte, Mag3, Mimibaba, zumbemkuu, Crashwise, amkawewe, Idimi, Ogah, Chakaza, mshana jr, JokaKuu, MWALLA, genekai, PRINCE CROWN, Tuko, Shark, lynxeffect22, samaki2011, MoudyBoka, adolay, Elli, nyabhingi, Janjaweed, S.N.Jilala, MEANDU, Tabby, Candid Scope, Honolulu, August, dyuteromaikota, BONGOLALA, Gefu, Bigirita, Kozo Okamoto, Shark, mirisho pm, Camp 05, Ngoami, Kamakabuzi, jerrytz
By The guardian reporter
31st May 2015
The Dutch government has threatened to prematurely terminate grant arrangement of Euro 16.6mln (Sh38bn) with Tanzania meant for the project dubbed ‘Electrifying Rural Tanzania' after delays of the government to provide sufficient budget for its implementation.
Reliable sources have told the Guardian on Sunday that The Netherlands Enterprise Agency has informed the Permanent Secretary, Ministry of Finance, Dr Servacius Likwelile that they will take the same measure if the project has not started before July 01, 2015 and reclaim the grant already disbursed.
"We would like to express our concerns regarding the progress of the project ‘Electrifying Rural Tanzania'," said Tamar Schrofer Coordinator ORIO on behalf of the Minister of Foreign Trade and Development Cooperation of the Dutch government, according to the source.
On September 14, 2012 the Dutch government and the Ministry of Finance signed a grant arrangement for the project.
According to Schrofer, the grantee is committed to quickly and energetically commence the execution of the grant arrangement and make every possible effort to ensure the timely and full implementation of the project and/ or coordinate with other organisations involved ---and ensure timely allocation of sufficient resources, competent staff and grant payment to the project, said the source.
He said further: "in addition to the grant, residual financing for the implementation phase and the operation and maintenance phase to the amount of Euro10,172,195 (Sh23,290,408,907.97) and Euro 6,205,704 (sh14,208,672,142.23)respectively will be supplied by the Ministry of Energy and Minerals with approval of the Ministry of Finance .
According to the source, the ORIO coordinator, Schrofer referred to the letter from the Energy ministry which stressed that the project was amongst the highly prioritised in the government's energy development plan for the financial year 2013/2014 and that the Finance Ministry assured ORIO that the financial matters was about to be solved.
"But since our previous letter dated 29 October 2014, this project has still not commenced," our source quotes Schrofer as saying in a letter to the Permanent Secretary, Ministry of Finance, adding: "ORIO notifies you formally that if no sufficient budget has been available and the project has not started before July 1 this year, ORIO will on the basis of clause 10.4 of the grant arrangement prematurely terminate the arrangement and reclaim the grant already disbursed."
But Schrofer warned further that if ORIO hasn't received reaction before June 1 this year, they will start the procedures to terminate the grant arrangement, our source said.
Earlier reports had it that in February 2014, the Ministry of Energy and Minerals committed itself that the project was amongst the highly prioritised in the energy development plan for the financial years 2013/14 and that it was under the Big Result Now Initiative (BRN).
It said further that the project was important towards supporting government's targets of increased access for electricity to 30 per cent by this year.
Reports detailed that the government has budgeted Sh22bn which is 50 per cent of its required contribution to facilitate implementation of the project.
The project is meant for electricity generation and extending distribution networks in the rural districts of Biharamulo, Mpanda and Ngara.
But reports from within government circles, say that already the government has started working on the matter and will soon resolve all the said resources as per grant arrangement.
Some members of Parliament have vowed to block the Energy Ministry and the ministry of finance budgets if their REA projects have not been implemented.
SOURCE: GUARDIAN ON SUNDAY
CC: Tized, Mr Rocky, Fixed Point, lyinga, NATA, Chakaza, Elly B, Ablessed, Michelle, everlenk, KikulachoChako, Emma, EMT, Daudi Mchambuzi, Arushaone, MziziMkavu, Ablessed, afrodenzi, Heaven on Earth, Power to the People, Jasusi, Eiyer, idawa, nguruvi, Mentor, Sikonge, Dingswayo, MANI, tpaul, Bramo, Bulesi Bulldog, Sangarara, MTAZAMO, Erythrocyte, Mag3, Mimibaba, zumbemkuu, Crashwise, amkawewe, Idimi, Ogah, Chakaza, mshana jr, JokaKuu, MWALLA, genekai, PRINCE CROWN, Tuko, Shark, lynxeffect22, samaki2011, MoudyBoka, adolay, Elli, nyabhingi, Janjaweed, S.N.Jilala, MEANDU, Tabby, Candid Scope, Honolulu, August, dyuteromaikota, BONGOLALA, Gefu, Bigirita, Kozo Okamoto, Shark, mirisho pm, Camp 05, Ngoami, Kamakabuzi, jerrytz