Build, not hire, Tanesco directed

MAUREEN ODUNGA

PRESIDENT John Magufuli, the Minister for Energy and Minerals, Prof Sospeter Muhongo, Ambassador of Japan to Tanzania, Mr Masaharu Yoshida and Tanesco Managing Director, Engineer Felchesmi Mramba, jointly unveil a plaque to lay the foundation stone for Kinyerezi II power project in Dar es Salaam yesterday. (Photo by Robert Okanda)

PRESIDENT John Magufuli has directed the Tanzania Electric Supply Company Limited (TANESCO) to do away with ...

hired electricity generating plants.

Instead, the Head of State has instructed the state-run power utility to come up with constructive ideas on how to set up their own power plants.

He made the directive in Dar es Salaam yesterday during the inauguration of Kinyerezi II 240-megawatts combined cycle power plant project, saying the country is rich in gas, uranium and coal and wind energy for electricity generation - and hence no need for unreliable supply.

"Hired plants are very expensive. They are a big burden to consumers who have to pay more to compensate for the high capacity charges, thereby benefitting the companies, which sign up with Tanesco like it was the case with IPTL,” Dr Magufuli observed.

He added that there had to be a point whereby the country could produce its own reliable electricity and be able to sell the surplus to other countries - just like what some countries are doing.

“That capacity is there,’’ the president stated. Dr Magufuli directed the Minister for Energy and Minerals, Professor Sospeter Muhongo, to work on the issue and always be wary of experts who advise on the use of hired power plants to handle shortages.

"Experts or consultants who advise us to hire power plants instead of buying our own are not fit for the job and if possible, terminate them since they do not wish this nation well," President Magufuli further observed and directed.

Laying of the foundation stone for Kinyerezi II 240-megawatt plant came a few months before the launch of Kinyerezi I, which currently generates 150 megawatts with plans afoot to extend its capacity to 185 megawatts. Dr Magufuli said the government will inject 20 million US dollars for the extension of the project.

A total of 425 megawatts is going to be achieved in the next two years when the projects will have been completed. "I am told that discussions with investors on the construction of Kinyerezi III 600 megawatts and Kinyerezi IV 330 megawatts are at an advanced stage.

You should work diligently to overcome electricity challenges faced by the majority of Tanzanians by obtaining reliable generation sources," noted the president.

He cautioned the Minister, Tannest Managing Director and the Permanent Secretary (PS) in the ministry to look for ways to preserve rain water so that hydro-power generating plants won’t be affected during drought seasons.

Dr Magufuli said the remaining 2bn/- compensation for the residents whose land was taken to pave way for the implementation of Kinyerezi I would be issued.

He called upon two residents who refused to receive their reimbursement to collect the money and if they are not satisfied should go to court.

The government has set aside 30bn/- for compensation. He extended appreciation to Japan, Word Bank (WB), the African Development Bank (AfDB) and other development partners for their continued support.

The president called on the contractors to accomplish the project within the contract time and where possible, before time; insisting, however, on quality, standard and value for money.

"The contractors should also consider hiring women and youth living in the area and cautioned them of any kind of theft as it would be delaying the development of the country ," he stressed.

Earlier, Prof Muhungo said the project was going to be implemented through a soft loan of 344 million US dollars, equivalent to 740bn/-, from the Government of Japan.

"Japan has injected 85 per cent of project funds, which amounts to 292 million US dollars while Tanzania has committed 15 per cent to the project, equivalent to 52 million US dollars (110bn/-)," said Prof Muhongo.

The project will be implemented by SUMITOMO Company from Japan and would be responsible for all the engineering work and plant procurement.

"This project is going to be owned by the government through TANESCO by 100 per cent, therefore the country will be the sole-owner of the electricity being generated," he said.

Prof Muhongo said since the Fifth Phase Government came into office, power generation has increased from 800 megawatts to 1,000 megawatts against the demand of 1,020 megawatts.

TANESCO Managing Director, Engineer Felchesmi Mramba, noted that the project is going to use a new technology identified as combined cycle, whereby electricity will be generated from natural gas and the heat obtained from the plant, will be used be used to boil water and generate electricity through vapour.

"The project will involve six plants with the capacity of generating 160 megawatts generated from natural gas and other two vapour plants generating up to 80 megawatts, bringing the total to 240 megawatts," he noted.

On his part, the Japan Ambassador to Tanzania, Mr Masaharu Yoshida, said for Tanzania to accelerate its efforts in becoming an industrialised middle-income country as envisaged, it was vital to possess reliable and quality electricity.

"I am sure Kinyerezi II will, upon completion, usher in a new chapter in Tanzania. It will be the first of its kind in all of East Africa," said Ambassador Yoshida.