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Tanesco to buy Mtwara powerplant for $13.5m

Discussion in 'Jukwaa la Siasa' started by Pasco_jr_ngumi, Feb 10, 2012.

  1. Pasco_jr_ngumi

    Pasco_jr_ngumi JF-Expert Member

    Feb 10, 2012
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    By The Citizen Reporter
    and Agencies
    Dar es Salaam. Wentworth Resources
    yesterday announced a deal to sell
    the Mtwara gas-fired power plant to
    the Tanzania Electric Supply
    Company, Tanesco, according to
    foreign news agencies.Tanesco’s
    management could not be reached
    for immediate comment but
    Wentworth said it was selling the
    plant for $13.5 million (Sh21.6 billion).
    The Citizen reached Mr Eliakim Maswi,
    permanent secretary in the ministry of
    Energy and Minerals, over the phone
    who however, declined to make any
    comment saying the ministry was only
    responsible for policy issues.
    He said Tanesco were in the best
    position to give information on the
    deal.The 18MW capacity gas-to-power
    plant already supplies its electricity to
    Tanesco. The plant is supplied with
    gas from Wentworth’s nearby Mnazi
    Bay gas field. Wentworth says the deal
    would allow it to streamline its
    operations and focus on exploring for
    hydrocarbons and developing its
    natural gas resources.
    "We believe the sale of the power
    plant is beneficial to both parties and
    we want to thank Tanesco and the
    government of Tanzania for their
    commitment and professionalism
    throughout the transaction process,”
    said managing director Geoff Bury.
    “This transaction provides us with
    further non-dilutive capital as we look
    to focus on our core strategy of
    exploring for hydrocarbons and
    developing known natural gas
    resources.“We look forward to
    continuing to be a reliable, long-term
    gas supplier to the Mtwara power
    plant and to being a gas supply
    partner with Tanesco in other parts of
    Wentworth said that the Mtwara asset
    has a net book value of $9.4 million.
    And in the first nine months of last
    year it generated revenues of $5.2
    million and a $206,000 profit.The deal
    follows last week’s news that
    Wentworth had agreed to acquire an
    additional 16.38 per cent stake in the
    Mnazi Bay licence, taking its total
    interest to 41.78 per cent, in an asset
    swap with Cove Energy. The firm
    described that deal as a ‘classic win-
    win’ situation.
    Wentworth and the operator Maurel
    et Prom will now take the project
    forward, alongside the Tanzania
    Petroleum Development Corporation.
    Maurel et Prom owns 38.22 per cent
    stake in Mnazi Bay and the TPDC
    owns a 20 per cent stake.
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    Hapa kuna harufu ya ufisadi

  2. TzPride

    TzPride JF-Expert Member

    Feb 10, 2012
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    Kwa nini unasema kuna harufu ya ufisadi?
  3. Pasco_jr_ngumi

    Pasco_jr_ngumi JF-Expert Member

    Feb 10, 2012
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    mmmm...... sna imani na nchi hiiiiiiii

  4. D

    DrT Member

    Feb 10, 2012
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    Ba! Tujiandae kwa umeme wa N'gao
  5. Sizinga

    Sizinga JF-Expert Member

    Feb 10, 2012
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    Hii sio nzuri hata kidogo!!
  6. simplemind

    simplemind JF-Expert Member

    Feb 10, 2012
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    The question is,why should govt buy a power plant with book value of $9.4 m for $13.5m and generate a paltry $240,000 profit per year? Over useful life of plant,open cycle gas turbines have life of about 20 years , hence UNDISCOUNTED returns over service life of plant is 240,000 x 20=$4,800,000. Discount future returns to their present worth and actual return over the project life is much less than $4.8m.??????. Hapa tumeliwa.