Six companies planned for electricity generation

HENRY LYIMO

 

A SECTION of participants attend a twoday energy conference held in Dar es Salaam on Thursday. (Photo by Mohamed Mambo)

THE government plans to have six new companies to replace state-owned TANESCO in electricity generation by 2022 as restructuring process of the power utility firm TANESCO gathers pace.

The Commissioner of Energy and Petroleum Affairs, Hosea Mbise told reporters in Dar es Salaam that TANESCO would remain in power transmission role in the restructuring exercise aimed at improving efficiency in the electricity sub-sector.

“We want the government to be dealing with development issues and not complaints as it is the case now,” he told reporters at the sidelines of the Powering Africa: Tanzania summit in Dar es Salaam.

The envisaged six companies will be divided in different zones-the Eastern, North Eastern, North Western, Central, South Eastern and South Highland-to expedite delivery of quality service required to help the nation meet her development ambitions.

Mr Mbise said in the meantime the government was assessing debts of the power utility firm and plan strategies for payments as well as other pressing issues before restructuring such as the fate of employees.

The government is focusing on unbundling electricity generation segment from transmission and distribution segments by December 2017 to improve efficiency and attract private investments in the electricity generation as part of reforms in under Electricity Supply Industry Reform Strategy and Roadmap 2014- 2025.

The existing TANESCO is expected to continue to be responsible for transmission and distribution until when distribution is unbundled by June 2021. Under the strategy the government will continue improving TANESCO’s financial performance through decentralizing decision-making on procurement, budget implementation and business plans to Zonal offices.

The government aims to increase installed electricity capacity from 1,583 MW to at least 10,000 MW by 2025 and expand transmission and distribution system to help in transforming the nation into semi-industrialized economy supported by a modernized and highly productive agricultural activities. About 200 key global power investors are in Dar es Salaam for a two-day Powering Africa: Tanzania summit which began in the city.

They include representatives from a number of local and international banks, power developers, technology providers and engineering and construction companies. The investors would be meeting government officers and other decision makers to explore investment opportunities within Tanzania’s energy and industrial sectors, the organiser of the event, UK based EnergyNet Limited said in a statement. The summit features number of networking opportunities such as coffee breaks, lunches and site visits for all participants to build strong professional relationships for the future.