| Thursday, 10 March 2011 23:11 |
 Minister for Energy and Mineral Willium Ngeleja Dar es Salaam. The National Social Security Fund (NSSF) intends to acquire the heavily indebted Kiwira Coal Mine for only $1.Briefing members of the Parliamentary Public Organisations Accounts Committee (Poac) in Ludewa yesterday, the NSSF Director of Planning, Investment and Projects, Mr Yacoub Kidula, said Kiwira owed the Fund more than Sh15.14 billion.The mine has accumulated debts to the tune of over Sh28.72 billion, with NSSF being the major creditor, he said.Other creditors and amounts the mine owes them are the Public Sector Pension Fund (Sh9.49 billion) and CRDB Bank (Sh4.07 billion).Mr Kidula said they were waiting for the government’s decision on the NSSF application as an evaluation of the project was being carried out. Meanwhile, Energy and Minerals minister William Ngeleja said in Dar es Salaam the government was currently considering the NSSF’s application to purchase the mine, adding that there were alternative plans to seek $400 million from China to finance its operations. He said during an interview with The Citizen that five entities were assessing the NSSF’s application to take over operations of Kiwira Coal Power Limited (KPLC). They are the Energy and Minerals ministry, Treasury, State Mining Corporation (Stamico), Tanzania Electric Supply Company Limited and the Consolidated Holding Corporation (CHC). Mr Ngeleja made the remarks while clarifying the ministry’s role in providing the information on Kiwira’s status contained in President Jakaya Kikwete’s February end-of-the-month speech. The President did not mention the NSSF’s application. “The Kiwira project has been delayed by the process of changing its ownership and obtaining $400 million to enable the construction of a 200MW power station. The issue of changing its ownership is in its final stages, and there are high prospects of getting the loan,” he said. But Mr Ngeleja said it was “premature” to inform the Head of State on the planned acquisition as the ministry was still considering the application.“You can’t furnish the Head of State with information that is not ripe. The President needs to have exhaustive information, which officials at the ministry are still working on. We couldn’t give him incomplete information,” he said.Mr Ngeleja said there were three possible outcomes of the vetting of the NSSF’s application.“We can decide to give NSSF full rights to run the mine, we can ask them to partner with other investors or request them to engage in another project. All these alternatives are possible. “We will have to assure ourselves that the NSSF has the technical expertise and financial capability to run the project…we have yet to decide on their application,” he said, adding:“The government of China had already shown willingness to provide us with $400 million, when the NSSF submitted its application last December, but we still have time to decide.” He said Chinese officials had travelled to Kiwira as they sought to ensure that the project was handed over to them. The minister was quick to add, however, that there was no controversy surrounding the application, and that everything would be sorted out as soon as possible so that an extra 200MW of electricity could be generated by 2013. In Ludewa, Mr Kidula said the NSSF planned to partner with a strategic investor and recapitalise the project to produce coal and generate power if the government accepted its request.The NSSF’s immediate plan is to produce 10MW six months after acquiring the mine, and 200MW and 500MW in two to three years and five years, respectively. Mr Kidula said the project would also produce an average of 50,000 tonnes of coal annually for the domestic market. NSSF is ready to acquire all KCPL assets and liabilities, including debts. In the process of reviving the mine, he said, they would initially employ 500 people, and the workforce would grow to 2,000 people when the mine was fully operational. Reported by Sylivester Ernest (Dar) and Joseph Zablon (Ludewa) Add this page to your favorite Social Bookmarking websites           |
| Last Updated on Saturday, 12 March 2011 10:15 |
Comments
+2
#6
mawazo dolonyi
2011-03-12 01:33
I am warning you people not to turn Public pension funds as "cash cow"
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+1
#5
Doctor No
2011-03-11 19:02
Let the NSSF take over
Kiwira coal mine. It is too beneficial to have Kiwira run investments in
mining than what them NSSF used to be before.Under Chama chashika
hatamu, NSSF used to be a fund provider to incur the expenses of running
politican affairs of political party.If the nssf has changed its
character and become a profit seeker, then it is OK to own
Kiwira.Politicians used to go and loan money at NSSF by virtue of their
political tittle and I doubt if those money they had borrowed were full
paid with interests. Good job NSSF,for stepping foward and investing in a
profit entity like Kiwira.
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+2
#4
Rahim
2011-03-11 11:29
The "CITIZEN" thank you
so much...your reporting, investigation, presentation, quality of the
news and lack of fear even after numerous Government threats are
encouraging. I wish other media houses could follow suit. You are the
only professional media house in the country...trust me! By the way
invest in TV please coz i hardly watch local channels coz there's
nothing to watch...Kudos!
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0
#3
Sune
2011-03-11 10:59
Citizen you are a smart guy. I'd vote for you.
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+2
#2
Citizen
2011-03-11 09:51
Would prefer seeing our
social security fund been invested on the development of world class
quality social service projects of high demand and return in health care
and higher education rather than on those troubled energy projects and
substandard quality UDOM like oversize higher education facilities. I’m a
senior civil servant contributing into the fund and needing a special
health care service I cant get because it is only available abroad and
my level of seniority does not qualify me for the costly treatment
abroad. If our fund could be used to create those high level healthcare
experts and facilities of high demand in the country for the benefit of
majority if not all.
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0
#1
HASHIMU
2011-03-11 08:58
Its a progressive idea
for NSSR to take over KIWIRA. it is a normal planning as for istance in
Germany and Malasia almost 1/3 of electricity in respective countries
are produced by Social security entity. I hestate to say that we
nomarlly come with good idea which almost paralise at the core stage of
implimentation. What NSSR had depted to KIWIRA may legally changed to
equitable capital as far as transfering of ownership is concerned
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