Tanesco to buy Mtwara powerplant for $13.5m

[Pasco_jr_ngumi]

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
Tanzania".
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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MY TAKE
Hapa kuna harufu ya ufisadi

MBUNGE BY 2015 , MTAKIONA

 

[TzPride]

Kwa nini unasema kuna harufu ya ufisadi?

 

[Pasco_jr_ngumi]

Kwa nini unasema kuna harufu ya ufisadi?

mmmm...... sna imani na nchi hiiiiiiii


KIDUM CHAMA CHA MAPINDUZI

 

[DrT]

Ba! Tujiandae kwa umeme wa N'gao

 

[Sizinga]

Hii sio nzuri hata kidogo!!

 

[simplemind]

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.