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Kiwira to generate 200MW power within three years

Discussion in 'Jukwaa la Siasa' started by nngu007, Mar 11, 2011.

  1. nngu007

    nngu007 JF-Expert Member

    Mar 11, 2011
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    THE government has reaffirmed its keenness to develop the Kiwira Coal Mine in Mbeya Region and talks with the two parties interested to inject 400 million US dollars to the project "are in top gear".

    The Minister for Energy and Minerals, Mr William Ngeleja, said generation of 200MW to be delivered to the national grid, is expected to start in 2013 as scheduled.

    The two parties are the government of China, through its Exim Bank and the National Social Security Fund (NSSF).

    He said discussions with the government of China, which has pledged needed funds in concessional loan, started during the 2008/09 fiscal year, shortly after the state repossessed the mine and have reached an advanced stage.

    Negotiations with the NSSF, which submitted its application to develop the mine in December, were also going on well, the minister said.

    He said the team of experts tasked to carry out the fund's due diligence, comprising officials from his ministry, Tanesco, State Mining Company (Stamico), Ministry of Finance and the Consolidated Holdings Corporation (CHC), met last week over the issue and would meet again next week.

    "This is the current and accurate information concerning the process to develop the mine", said the minister refuting reports carried out by a local English private newspaper 'The Citizen' that the ministry provided President Jakaya Kikwete with misleading information on the matter.

    The newspaper had reported on its front page yesterday that the information on plans to revive the mine given to President Kikwete which he used in his monthly address last month was from a document prepared a year ago.

    Mr Ngeleja said the reported inaccuracy of the information was omission in mentioning NSSF as one of the parties that applied to develop the mine.

    "But the president cannot incorporate each and every detail in his speech...NSSF submitted its application only three months ago while the Chinese handed over theirs more than two years ago," he pointed out.

    Mr Ngeleja, who reaffirmed the government's commitment to see the mine becoming operational sooner than later, maintained that although NSSF is a local and public firm, its application has to be processed according to laid down procedures.

    "We have to satisfy ourselves on a number of issues, including its financial position and expertise... then we will compare notes and decide which between the two to award the project to develop," he said adding:

    "We will go for the best option ...instead of picking one; we can as well decide to let in both of them".

    Meanwhile, a 50 megawatts wind-farm project worth 120m US dollars (about 180bn/-) is due to be constructed by a Chinese company, Dalian International in Singida region starting later this year, reports FINNIGAN WA SIMBEYE.

    The Deputy Minister for Trade, Industry and Marketing, Mr Lazaro Nyalandu, said in Dar es Salaam on Thursday that the Chinese firm will send its representatives to the country within three weeks.

    "I was in China for 10 days leading a delegation of experts to do due diligence on the Chinese firm which the government has picked to invest in wind-farm electricity generation. The results are encouraging," Mr Nyalandu said on arrival at Julius Nyerere International Airport yesterday.

    Mr Nyalandu said the Chinese firm, which is the third largest wind power generation company in China, manufactures durable modern windmills and related accessories to generate electricity.

    "After signing the final agreement, they told us that it will take 15 months before electricity generation starts," Mr Nyalandu said.

    Dalian International Economic & Technical Cooperation Group Company Limited which will partner with National Development Corporation and Power Pool East Africa Limited will also establish another win-farm at Makambako in Iringa Region.

    In all, the consortium will invest up to one billion US dollars (about 1.5trn/-) in Singida within the next three years where 50,000 hectares have been allocated for the purpose and another 14,000 ha in Makambako.

    "In Singida more than 1,000MW of electricity will be produced when the project reaches its peak," Nyalandu noted.