Tanzania:Tanesco signs $500m deal

The Tanzania Electric Supply Company (Tanesco) building in Ubungo, Dar es Salaam. The company has signed a $500 million power purchase agreement with mining firm Kibo. PHOTO | NMG 

In Summary

• According to the deal, Kibo will supply 300MW from its Mbeya plant to the national grid.
• Other countries in the region are also diversifying their power sources fromi from hydropower into coal, geothermal, steam, natural gas, solar and wind.

By KENNEDY SENELWA
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Tanzania Electric Supply Company (Tanesco) has signed a $500 million power purchase agreement with mining firm Kibo.

According to the deal, Kibo will supply 300MW from its Mbeya plant to the national grid.

Kibo chief executive Louis Coetzee said the firm hopes to complete funding arrangements for construction and commissioning of a Managed Co-Lending Portfolio Programme (MCPP) during the second half of 2018, after which power generation can commence in 36 months.

“We will continue to work closely with all the relevant parties and remain positive that the Ministry of Energy will honour its commitment to deliver signed a power purchase agreement by the end of the first quarter,” Mr Coetzee said.

Other countries in the region are also diversifying their power sources fromi from hydropower into coal, geothermal, steam, natural gas, solar and wind.

Edenville Energy is planning a 120MW Rukwa coal to power project in south western Tanzania estimated to cost $175 million.
Kibo is working with SEPCO III of China for construction.