Experts warn Dar not to hire generator

Experts warn Dar not to hire generator

Posted Monday,

May 16 2011 at 00:00
THE EAST AFRICAN


As Tanzania returns to the dark ages, The EastAfrican has learnt that the route being taken by the government to import a 260MW emergency power plant could put electricity out of the reach of most ordinary Tanzanians.

The government is said to have put out a tender for the supply on hire of generators.


“What should have been of priority is to use what is locally available, including the IPTL plant, because the plant is currently generating only 10MW out of the installed 100MW capacity,” said a source.


“It makes economic sense to expand generation at the IPTL plant, which would also mitigate the ongoing power rationing. The capacity charges at IPTL are known thus it is easier to plan than to rush for emergency plants, which would in the end prove very costly,” the source added.


The IPTL plant can generate 50 per cent of its installed capacity, paying $3 million every month as capacity charges in addition to the cost of the power generated.


However, bringing in the emergency generators would mean coughing up some Tsh60 billion ($40 million) every month to run the plant.

“In a nutshell, Tanzanians must prepare themselves for expensive power once the hired generators are installed,” said the source.


The EastAfrican was also told that the current arrangement whereby Songas operates extraction of gas, transportation and generation of power was disadvantageous to the country.


“It would have been better to have different companies operating at these stages, as was evidenced by the recent announcement by Songas that it would be closing the plant for maintenance works. This left Tanesco with no option but to effect loadshedding for as long as 15 hours.”


The National Social Security Fund has put in a request to the government to build another gas pipeline to Dar es Salaam for the generation of power and other uses.


However, the government is yet to respond not only to this submission but another one, whereby the Fund wants to go into power generation by bringing in turbines to generate electricity using locally sourced gas.


Experts argue that it would be cheaper to purchase power generation units than to hire them because this would add another burden on Tanesco, which pays over $7 million every month to IPTL and Songas.


On May 28, 2010, Tanesco applied for review and approval of four regulatory actions that included system wide tariff adjustments over three years from January 1, 2011.


The proposed tariff increases were 34.6 per cent in 2011, 13.8 per cent in 2012 and 13.9 per cent in 2013.

However, the Electricity and Water Utilities Regulatory Authority (Ewura) deferred this until a credible cost of service study was carried out by an independent outfit.

With effect from January 1, Tanesco is now requested to submit to Ewura quarterly reports detailing the implementation of its Repair and Maintenance Programme and Capital Investment Programme, customer connections, a system losses reduction status report, electricity purchased costs, own generation costs, number of metered customers, and total revenue and units sold.

No wonder, African rulers and bureaucrats don't learn from past mistakes of their own making or of their peers. They are 'better' positioned to repeat the same mistakes time and time again without conducting regression analysis! Our take-off toward real development is far from near if we don't revise the kind of people we entrust with power.

Kwenye suala la umeme, sadly, Tanzania is behaving like we are all in a refugee camp! Kwa nini tusinunue Genators? Cost -benefits za kukodisha vs kununua zimetolewa na watu wengi sana lakini cha ajabu wakubwa wanaonekana kuwa wagumu. After a catalogue of failures what makes these wakubwa think that they know better?

sanaa inapozidi maarifa,

Halafu tunaambiwa Rais wetu ni kichwa sana!

Electricity woes in this country is so far the monumental failure by design under the leadership of Mh. Kikwete!

Of recent history, I don't see other solvable problem that has recklessly been mishandled in its entirety like this in our country.

Hivi ni kwa nini sisi tu kila siku?.... I don't want to believe that I'm in a wrong country but i thing the ****** is in a very wrong office, huyu jamaa anatakiwa awe balozi wa nyumba kumi huko Msoga,,

Modes hivi M.K.W.E.R.E ni tusi now days humu ndani????? anachotufanyia ni zaidi ya kumwita namna hiyo maana ndo tafsida zenyewe kwa watu kama sisi eti mengine hayaandikiki kabisaaa....

Hata mimi naunga mkono ushauri uliotolewa na gazeti la east african.Tumechoka na gharama za umeme kuendelea kupanda. Pia taasisi zote za umma zinazotaka kuzalisha umeme ziruhusiwe.

Zitto: Some govt officials benefiting from IPTL deal




By Judica Tarimo



7th April 2011












The deputy opposition leader in the House, Zitto Kabwe (Kigoma-North, Chadema)


The government has been criticized for continuing to pay billions of shillings in capacity charges to the Independent Power Tanzania (IPTL) Limited and unnecessary delays in powering the plant with natural gas.
The deputy opposition leader in the House, Zitto Kabwe (Kigoma-North, Chadema) said the government spent 46bn/- in a span of three months (November, 2009 to February 2010) for the purchase of heavy fuel to run the IPTL power generation system.
He asked the government to explain the source of the huge sum of money to purchase the fuel, considering that such payments were included in the 2010/11Energy and Minerals ministry budget.
"The expenditure was not approved by Parliament….From where did the ministry get the money to buy fuel for the IPTL generators?" Kabwe queried.
Energy and Minerals minister William Ngeleja, admitted that the money used to buy fuel for the IPTL plant was not endorsed by the august House, but added: "We had to spend the money to rescue the nation from the looming power crisis."
"Zitto is Chairman of the Parliamentary Committee on Public Organisations Accounts, who knows well how to access documents on fuel payments for the power plant. I will give you (Zitto) details on how the funds were secured and spent after this session," Ngeleja said.
The outspoken legislator also questioned the logic behind the continued payment of billions of shillings in capacity charges to the IPTL.
He noted that at the moment, the government spends 3.6bn/- monthly on IPTL, adversely affecting the country's economic growth.
According to the opposition MP, money paid as capacity charges to IPTL, which has been deposited in a special account (Escrow Account) has reached 160bn/-.
He described the payments as unnecessary expenditure, criticizing the government for delaying to transform the IPTL plant from a heavy-fuel driven one to a natural gas-fired power generator.
"The plan to transform the plant and place it in government hands has been there for years, but there is reluctance to act. We suspect that some people in government circles are intentionally delaying the transformation process because they benefit from the heavy-fuel purchase tender," Kabwe said.
"IPTL has become an income-generating project for some people in the government system…the responsible minister should give explanation on these controversies," he said.
Transforming the plant and placing it under the government, he said, would help to reduce the cost of operations and improve supply of electricity to Tanzanians.
Responding, Energy and Minerals minister William Ngeleja said the government plan to make IPTL run on natural gas remained intact, but noted that its implementation was being delayed by a legal dispute currently in court pitting the partners of the plant.
"We cannot proceed with the plan to transform the plant until the dispute is settled. I want to assure MPs and the general public that the government's plan to transform the plant will not change," Ngeleja said.
In his response to the main question asked by the same MP, the minister said the questionable money (46bn/-) used to buy heavy fuel for running IPTL was sourced from the Consolidated Fund.
The government is paying billions of shillings in capacity charges to the private power firm, condemned as one of the dubious and controversial contracts inked by the government and private investors in the power sector.



SOURCE: THE GUARDIAN
Kwahiyo ukiangalia hapo utaona costs si hizo zilizotajwa za kuzalishwa umeme. Habari ina utata. Pia hao jamaa watazalisha megawati nyingi.
I am sure kwenye issue ya costs ukilinganisha na IPTL imezingatiwa. Lakini issue tunakodi mitambo kwa muda gani? Lini permanent solution itapatikana? lakini waandishi nao wanatakiwa wafanye homework ya kutosha. Maana IPTL hawakuzalisha kwenye full capacity na costs zilikuwa hizo. Kwa ujumla umeme wa IPTL ni ghali mno.

IPTL is not a good option because its Generators uses Petrol instead of cheap natural gas. The cost of using IPTL is twice as much and is not owned by Goverment and the Goverment should not paying any money to petrol Generators while we have enough gas.