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Tanesco picks firm for power project-Power to start flowing from July!

Discussion in 'Habari na Hoja mchanganyiko' started by BabuK, May 25, 2011.

  1. BabuK

    BabuK JF-Expert Member

    May 25, 2011
    Joined: Jul 30, 2008
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    Energy and Minerals minister William Ngeleja
    In the wake of pressure over delayed power projects, Tanzania Electric Supply Company Ltd (Tanesco) yesterday officially commissioned a private firm to implement the much-discussed 260MW project.
    However, the national power firm managing director, William Mhando did not give details on the company that has won the tender.
    He told the Parliamentary Committee on Energy and Minerals, in Dar es Salaam yesterday that the company is expected to start producing power by July this year.
    At the meeting also attended by the Energy and Minerals Minister, William Ngeleja, Mhando said the 260MW will be produced at four stations namely Tanga, Tegeta, Ubungo and Ubungo old power station.
    Minister Ngeleja said that according to the Procurement Act, Tanesco cannot mention the name of the company since some procedures were yet to be completed.
    Mhando said initially 15 private firms showed interests in the projects when the offer was announced in March 18th, this year, but only three submitted their bids on April 15th, 2011.
    The Tanesco chief reiterated that his company needed at least 1.3trn/- to improve power services in the country, insisting that the price at which Tanesco is currently selling electricity to its customers was not cost effective.
    “We need to rehabilitate electricity producing systems,” he said.
    Mhando said repairing and upgrading of the Iringa-Singida transmission line required USD 700 million, main transmission line needed USD 700 million, Kiwira USD 400 million and Kinyerezi USD 240 million.
    “Tanesco welcomes your opinions on how to improve its services. We are experiencing shortage of funds to ensure provision of quality service,” he told committee members.
    Presenting a report on the implementation of the committee’s recommendations, the Minister promised the committee that electricity services will be stabilised by December this year. He said short and long term plans show that Tanzania will be able to produce 1,000MW by 2013.
    “It will be difficult for some people to agree with me due to the current power crisis, but in two years to come most of the projects will be operating,” said Ngeleja.
    Ngeleja said as advised by stakeholders, the government has decided to give Tanesco total freedom in implementing its projects.
    He however, made it clear that mining firms were consuming only 59.2MW from the national grid and not 125MW as stated earlier.
    For his part, Energy and Minerals Parliamentary Committee chairman, January Makamba expressed dissatisfaction with Tanesco explanations on the on-going 16-hour power shedding, saying rationing has caused serious economic problems, and that if it persists, the national income would drop by 5 per cent.
    He said the committee expects Songas administration to explain why it failed to switch its machines to jet fuel while it is clearly stated in its contract with Tanesco.
    “I have a copy of the contract. It clearly states that in cases of emergency, the machines can operate using liquid fuel”, he said.
    However, Tanesco MD admitted to have not read the contract signed between Tanesco and Songas.
    Tanzanians hooked to the national grid are experiencing a 16-hour power shedding which started on May 19th and is due to end on May 26.
    In its statement Tanesco said there will be a deficit of 200 megawatts in the national grid. A deficit of 350 megawatts will be experienced from May 23 to 26, due to the shutdown of all gas wells on Songosongo Island.
    US-based, Symbion Company on Monday submitted its proposed charges for electricity sale to Tanesco which are lower than those of either Songas or IPTL plants.