FAUSTINE KAPAMA
THE Pan Africa Power Solutions Tanzania Limited (PAP) has started implementing the directives of the High Court regarding expansion of capacity and conversion of the Independent Power Tanzania Limited (IPTL) power plant and reduction of tariffs to the lowest point.
“We are interested in seeing to it that the conversion and expansion of the power plant is undertaken and accomplished within the shortest time possible,” the Acting Executive Chairman with PAP, Mr Joseph Makandege, told a news conference in Dar es Salaam, over the weekend.
He pointed out that they were determined to ensure that what had been agreed upon and directed by the High Court was realized and what currently they were waiting for was consent from Tanzania Electric Supply Company (Tanesco) to accomplish the mission.
On September 5, 2013, High Court Judge John Utamwa ordered the Administrator General, who had been appointed provisional liquidator of IPTL, to hand over the company’s affairs, including the power plant situated at Tegeta in Dar es Salaam to PAP.
The judge further directed the new owner and operator of IPTL (PAP) to make arrangements soonest after taking over, for expansion of the power plant’s capacity from the current 100 MW to 500 MW and to charge to Tanesco the lowest tariff of between six and eight US cents per unit.
Mr Makandege said that since they took over the IPTL Company in September, 2013, they have embarked on a variety of developments including making arrangements that would see the conversion and expansion beginning, probably by early next year.
“For example, when we took over the operations, the plant had been producing only 30 MW. But as we speak now, IPTL machines are operating in full capacity of 100 MW.
We have also improved working conditions and salaries for our employees,” he said. Mr Makandege, who is also PAP’s Company Secretary and Chief Counsel, disclosed further that though currently IPTL had pegged the lowest capacity charges to Tanesco they would continue to lower the tariffs to make them affordable to ordinary citizens.
According to him, after PAP had taken over ownership, control and management of the affairs of IPTL it was their obligation and, in fact, it was still their intention to see to it that they convert the generators from Heavy Fuel Firing plants to Dual Firing Plants.
He said that they wanted to make the plant capable of operating on heavy fuel oil. At the moment the plant uses fuel oil as well as gas with the aim of providing for a contingency in case of shortage of supply of fuel
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