Tanzania: TANESCO asks World Bank for $200M to clear debts

[BAK]

Tanzania: Tanesco asks World Bank $200M to clear debts

- Wednesday, 18 January 2017 - 12:15


(Ecofin Agency) - Tanzania announced it is in talks with the World Bank over a $200 million loan to clear Tanesco’s debt and revive the power utility. The company’s debt stood at $363 million in 2016, against $250 million the year before.

The news comes after Tanzania’s president, John Magufuli, cancelled the increase (+8.53%) of power tariffs approved by the energy and water utilities regulatory authority (Ewura) last Dec. 31, 2016. Judging the measure anti-industrialization, the leader had in fact let go of Felchesmi Mamba, Tanesco’s director.

Despite many experts suggesting that the World Bank could ask, in exchange for the loan, Tanesco to increase electricity tariffs to cover its energy production costs, the government said “there is no agreement with the World Bank in this regard”.

 

[BAK]

Friday, October 28, 2016
State gets ultimatum on Tanesco debt

In Summary
Zanzibar owes the public utility Sh85 billion, accumulated over three years, while institutions under the Union Government have yet to pay Sh40 billion

Dodoma. The Parliamentary Public Accounts Committee (PAC) has given the government a six-month ultimatum to pay a Sh125 billion debt it owes Tanzania Electric Supply Company (Tanesco).

According to the Tanesco Managing Director, Mr Felchesmi Mramba, Zanzibar alone, through Zanzibar Electricity Corporation (Zeco) has a debt amounting to Sh85 billion, accumulated over a period of three years—since 2013—while institutions under the Union Government owe the power utility firm Sh40 billion.

“We really need urgent assistance in collecting the debts, especially the Zanzibar one, which is so huge and still growing,” said Mr Mramba before the committee on Wednesday evening.

The PAC chairperson and Same East MP (Chadema), Ms Naghenjwa Kaboyoka, asked the Tanesco management if it had taken any initiative to recover the money, especially from Zanzibar, including threatening to cut off the supply.

Mr Mramba said Tanesco had issued the threat sometimes back, but the matter was then taken over by the government.

“It was discussed between the Union and the Isles governments as a Union matter; two meetings have been held and the latest information we have is that Zeco has asked the Government of Zanzibar to settle its debt and we are hopeful something will happen soon.”

Mwanakwerekwe MP (CUF) Ali Salim Khamis asked Tanesco what reason the Zanzibar government has been giving for the massive default and Mr Mramba responded:

“The reason is tariff difference, Zeco is charging lower tariffs compared to Tanesco and that means it is collecting less than we charge them. Tanesco tariffs are set by Energy and Water Utilities Regulatory Authority (Ewura); in the Isles, Zanzibar Utilities Regulatory Authority (Zura) has been established and it will be setting tariffs there.”

Treasury Registrar Lawrence Mafuru told the committee that indeed, Tanesco was doing all that it can to collect debts, adding that the Zanzibar debt is already on President John Magufuli’s desk.

“I personally participated in the submission of the debt report to the highest level of decision making in the country, and I strongly believe that the issue will be resolved soon, and those who aren’t going to clear their debts will face power cut-offs.”

“The committee hereby directs the government to make sure that all the debts are cleared within six months,’’ ruled Ms Kaboyoka, adding:

“It is high time the government left Tanesco to operate as a business enterprise; it doesn’t make sense to hike electricity bills for ordinary wananchi while government institutions are accumulating huge debts.”

Morogoro South-East MP Omary Mgumba asked Tanesco to outline strategies they are employing to ensure the debts aren’t accumulating any further. According to Mr Mramba, to date, the power utility firm has installed Luku (pre-payment) meters for about 96 per cent of their customers, including the Police Force, Prisons and Tanzania People’s Defence Forces (TPDF).

“We are going to finish up with the remaining 4 per cent by next April. We want to do away with post-paid services so that all electricity subscribers will be using Luku meters.”

In another development Sikonge MP Joseph Kakunda pointed out irregularities in the procurement process revealed in the ‘CAG Report for the Financial Year 2014/2015’ and asked Tanesco officials to state what measures they have put in place to forestall a repeat.

According to Mr Mramba, Tanesco made a reshuffle in the Procurement Department, noting that more than 50 per cent of the current employees there are new. He added that the department was restructured to establish four new sub-sections.

They include Major Projects and Consultancy, Equipment distribution, Generation and Transmission and General Procurement sub- sections. “After these changes, we have recorded a number of improvements and we prepared a manual that gives guidance on how to operate in that department,’’ he said.

In its directives, PAC asked Tanesco to make sure procurement anomalies pointed out in the 2014/15 CAG report are not repeated.

 

[BAK]

http://app.printfriendly.com/print?...z_zrqvHz%dQCEvAGsEvrAqyL%cgHGz_FBHEpr%dQGBBy#
TANESCO's 765bn/- debt mountain laid bare
ippmedia.com/en/news/tanescos-765bn-debt-mountain-laid-bare

The debt owed to the controversial Independent Power Tanzania Limited (IPTL) company and other emergency power firms.

TANESCO revealed details of its current cash-strapped situation in documents submitted to the Energy and Water Utilities Regulatory Authority (EWURA) last week as part of its application for a tariff downward adjustment.

More than two-thirds of TANESCO's debt is owed to private power producers, gas and fuel suppliers, representing 550.98bn/- in total.

Out of that amount, the IPTL company alone is owed an outstanding debt of 125.37bn/-, while Songas Limited - which also sells electricity to TANESCO – is owed 214.84bn/- and Pan African Energy - which supplies natural gas for power generation - is owed 172.15bn/-.

Some of TANESCO's other biggest creditors include Aggreko International, Symbion Power, and a clutch of oil marketing companies who are owed 174.26bn/- for emergency power purchase and 24.88bn/- for the supply of fuel and lubricants for TANESCO's off-grid diesel power generators.

Other costs, which include materials, repair and maintenance, audit fees, insurance, projects, legal fees and consultancy, account for 15.58bn/- of the loss-making power utility’s debt stock.

The company is now seeking EWURA’s approval to lower electricity tariffs in compliance with government directives aimed at increasing the size of the population with access to electricity to 75 per cent by 2025 from current levels of around 40 per cent.

The logical thinking of the President Magufuli-led fifth phase administration is that by lowering power tariffs and connection fees, more Tanzanians would be able to afford electricity.

Based on that premise, TANESCO – while currently selling electricity at a loss - has formally requested the government-run energy regulator to approve a tariff reduction of 1.1 percent effective from April 1 this year, and a further cut of 7.9 per cent effective from January 1, 2017.

However, so high are TANESCO’s current debt levels that the company warned in its correspondence to EWURA that it could well become financially paralysed if the energy regulator chooses to reduce tariffs more than the requested levels.

Some analysts have warned that political interference in the running of TANESCO has for decades been a major stumbling block in plans to turn around the company.

The World Bank and the International Monetary Fund (IMF) are reported to have advised the government for several years now to allow TANESCO to raise power tariffs and end the continuous use of state funds to subside the utility.

Meanwhile, TANESCO's managing director Felchesmi Mramba yesterday defended the company's decision to seek a cut in power tariffs despite being in poor financial shape.

Speaking to journalists in Dar es Salaam, Mramba said the completion of the Mtwara-Dar es Salaam gas pipeline meant that the company could now reduce its reliance on costly imported oil for power generation by switching to gas-fired turbines.

This, he said, meant the recommended tariff reductions would not have any negative impact on the company as operational costs should be lowered thanks to the new pipeline.

“We will generally depend on gas starting next year…the government has recently provided over 100bn/- to speed-up implementation of the Kinyerezi II power project which is expected to add 240MW to the national grid,” the TANESCO boss said. He noted that fuel and hydro-power will only be used to boost supplies during peak hours at night.

He also announced a decision to scrap service charges for domestic users in their monthly power bills and application fees for all customers with effect from April this year.

Under the current tariff regime, TANESCO sells one unit of electricity for just 274.9/-, compared to its actual revenue requirement target of 348.68 per unit (in kilowatt hour). The company also charges a service charge of 5,520/- per month per to every domestic customer. The scrapped initial payments (application fee) is 5,900/-.

It is understood that according to the law, EWURA is supposed to respond to TANESCO’s tariff reduction request within 21 days from the date of submission.



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[MENGELENI KWETU]

Mkuu BAK Asante..

Kwa hiyo flow uliyotupa, naweza kusema kwa kifupi tu..
Serikali ndio IMEIMALIZA Tanesco.

Na kuna viongozi wengi sana wa serikali wamekuwa MAMILIONEA kwa kulimaliza Tanesco.

 

[MENGELENI KWETU]

Serikali inaachiaje Zanzibar ikawa na deni kubwa ivyo??
Serikali inaachiaje idara zake zikawa na madeni makubwa namna hii ya Tanesco..??
Shame..!!

 

[MENGELENI KWETU]

Niliwahi kuandika na narudia tena, Injinia Felchismi Mramba AMEONEWA vibaya sana.

 

[Kisu Cha Ngariba]

Kwahiyo serikali inaikopesha benki ya dunia? Kweli nchi yetu ni tajiri.

 

[BAK]

Mkuu kama unavyoona waangamizaji wa Tanesco ni Marais waliosaini mikataba ya kifisadi ambayo imekuwa chanzo cha madeni makubwa kwa TANESCO na pia kusababisha wauze kila unit moja kwa hasara ya shilingi 74, pamoja na hasara kubwa kiasi hiki bado Magufuli anataka wapunguze bei ya umeme!

Magufuli haoni tatizo kutumia trilioni moja bila idhini ya Bunge lakini wakati huo huo anashindwa kulipa deni la Serikali kwa Tanesco la 125 billion ili kuipunguzia Tanesco hali mbaya ya fedha. Hapo ndiyo utaona Mkuu jinsi TANESCO isivyopewa kipaumbele na badala yake wanataka kuiangamiza ili wafungue makampuni yao binafsi ambayo bei zake za umeme zitakuwa hazishikiki.

Mkuu BAK Asante..

Kwa hiyo flow uliyotupa, naweza kusema kwa kifupi tu..
Serikali ndio IMEIMALIZA Tanesco.

Na kuna viongozi wengi sana wa serikali wamekuwa MAMILIONEA kwa kulimaliza Tanesco.

 

[foxplato]

Mkuu BAK Asante..

Kwa hiyo flow uliyotupa, naweza kusema kwa kifupi tu..
Serikali ndio IMEIMALIZA Tanesco.

Na kuna viongozi wengi sana wa serikali wamekuwa MAMILIONEA kwa kulimaliza Tanesco.[/QUOTE
SERIKALI SIO TANESCO

 

[foxplato]

Unaposema Serikali wameimaliza Tanesco unamanisha na ww umeimaliza Tanesco,,kwani tunapozungumzia Serikali hata ww pia ni Serikali

 

[BAK]

Mimi ningekuwa ni Serikali nisingeruhusu upuuzi huu wa kuwafumbia macho wahusika wote waliosaini mikataba ya kifisadi ambayo sasa inaiyumbisha TANESCO.

Wananchi wangekuwa ni Serikali upuuzi mbali mbali unaoendelea nchini wasingeuruhusu kwa faida ya nchi na wananchi.

Unaposema Serikali wameimaliza Tanesco unamanisha na ww umeimaliza Tanesco,,kwani tunapozungumzia Serikali hata ww pia ni Serikali

 

[KAPETOT]

Ukweli hujitetea wenyewe.

Muhongo anafanya vikao kukopa U$ milioni 200 kuiwezesha TANESCO kulipa madeni. Lakini mbona masharti ya kukopa kutoka Benki ya Dunia kimya？Daima ukweli hujitenga na uongo. Mhe. Muhongo awaombe msamaha Watanzania kwa kutowaambia ukweli kuhusu sakata la kupanda bei ya umeme. Ukweli ni kwamba yeye Ndiyo mwaasisi wa mchakato wa kupandisha bei. Mungu ampe ujasiri wa kusema kweli. Wahenga Walisema njia ya muongo ni fupi.

 

[Mndali ndanyelakakomu]

Unataka abadili gia angani

 

[BAK]

Mkuu ndiyo tatizo kubwa la hawa watu ni wasiri sana katika mambo mbali mbali ambayo hayahitaji kuwa na siri kiasi hicho. Aliyekuwa Mkurugenzi Mkuu wa Tanesco kafuata taratibu zote za kuomba kibali cha kuongeza bei ya umeme kakataliwa na kutumbuliwa pia. Wameenda kuomba mkopo wamepewa masharti ya kuongeza bei ya umeme lakini wanaficha hawasemi ukweli kwa stakeholders ambao ndiyo watumiaji wa umeme nchini mpaka tuyajue mamambo haya kupitia vyombo vya habari vya nchi za nje.

Ukweli hujitetea wenyewe.

Muhongo anafanya vikao kukopa U$ milioni 200 kuiwezesha TANESCO kulipa madeni. Lakini mbona masharti ya kukopa kutoka Benki ya Dunia kimya？Daima ukweli hujitenga na uongo. Mhe. Muhongo awaombe msamaha Watanzania kwa kutowaambia ukweli kuhusu sakata la kupanda bei ya umeme. Ukweli ni kwamba yeye Ndiyo mwaasisi wa mchakato wa kupandisha bei. Mungu ampe ujasiri wa kusema kweli. Wahenga Walisema njia ya muongo ni fupi.

 

[mgodi]

Bei ya umeme itapanda tu, hili halikwepeki. Muda ndiyo rafiki wa mambo yote.

 

[mgodi]

Mr. Mramba aanze kula mazoezi ya kuwa balozi, maana muda si mrefu atapiga suti. Waswahili waliliona hili, wakaweka usemi wao ''mlango mmoja ukifungwa, mlango mwengine hufunguliwa''. Hata mama yangu wa Same, mmoja ulijifunga bahati mbaya, mwengine umefunguliwa jana.

 

[Wacha1]

According to my records JPM alisema mara alipochukua madaraka shirika la umeme litarudishwa kama lilivyokuwa mwanzo i.e kabla Che-nkapa hajawapa South Africans kuliendesha kama sikosei. Huyu pamoja na JK ndio walioliingiza mkenge shirika hili, mtakumbuka Mzee @Mwanakijiji alileta hapa kampuni bandia iliyosajiliwa kule South Amerika nk. JPM will clean this mess believe me, just give him time.

 

[KAPETOT]

Hofu ni kuwa Muhongo atajificha wapi ukweli utakapowekwa wazi? Benki ya Dunia hawagawi fedha bure, sharti la kupanda bei Muhongo atalitekeleza vipi baada ya kudanganya? Stop Order ametoa lakini je alizingatia Sheria kufanya hivyo? Kama ndiyo mbona kifungu kinachompa mamlaka ya kufuta uamuzi wa EWURA hakukitaja? Na je mbona EWURA hawajatoa taarifa yoyote kwa umma kubatilisha uamuzi wao wa awali? Je Muhongo sasa ameelewa ndiyo maana anashindwa kuwashinikiza EWURA kutoa tamko la kusitiza bei waliotangaza?

Time will tell!!

 

[KAPETOT]

Hofu ni kuwa Muhongo atajificha wapi ukweli utakapowekwa wazi? Benki ya Dunia hawagawi fedha bure, sharti la kupanda bei Muhongo atalitekeleza vipi baada ya kudanganya? Stop Order ametoa lakini je alizingatia Sheria kufanya hivyo? Kama ndiyo mbona kifungu kinachompa mamlaka ya kufuta uamuzi wa EWURA hakukitaja? Na je mbona EWURA hawajatoa taarifa yoyote kwa umma kubatilisha uamuzi wao wa awali? Je Muhongo sasa ameelewa ndiyo maana anashindwa kuwashinikiza EWURA kutoa tamko la kusitiza bei waliotangaza?

Time will tell!!

 

[mzee wa kijiwe dar]

Swala lilikuwa ni kimuondoa Eng. Mramba si unajua katokea wapi??????