THE government will consider listing at the Dar es Salaam Stock Exchange by 2024 entities that will be formed after restructuring of power utility firm, Tanzania Electric Supply Company.
The government plans to form a power
generation company by 2017 to manage electricity generation activities
and a number of distribution companies by early 2021 under Electricity
Supply Industry Strategy and Roadmap (2014/25).
In a statement issued by the Tanzania
Electric Supply Company Limited (TANESCO) it is stated that the aim of
the roadmap is to increase locals’ participation in the ownership of
public companies through the DSE as well as enabling the companies to
raise capital for investment particularly in electricity
infrastructures.
Currently, there are four major sources
of funding for investment in the power sector namely the government,
development partners, financial institutions and Tanesco itself. To
bridge the financing gap while balancing investors and consumers
interests, private capital investment becomes an important option.
The unbundling of generation segment
from transmission and distribution segments and establishment of the
generation company to be owned 100 per cent by the government will be
realised before the end of 2017.
The existing Tanesco will continue to be
responsible for transmission and distribution until when distribution
is unbundled by June 2021. Distribution companies to be owned 100 per
cent by the government will be established early 2021.
Tanzania is envisioned becoming a
middle-income country by 2025, implying that the income per capita has
to increase from 640 US dollars to at least 3,000 US dollars.
Consequently, the installed power
capacity must increase to at least 10,000 Megawatts in 2025 from about
1,600MW currently in order to have adequate, reliable, affordable and
environmentally friendly power
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