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Tuesday, February 2, 2016

Tanesco entities after restructuring to go public

DAILY NEWS Reporter
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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