M a r k e t N e w s
Tanzania: Tanesco Pleads for Kinyerezi Fund
Posted on : Wednesday, 19th July 2017
Tanzania Electric Supply Company (Tanesco) has pleaded with the government to release funds on time for the implementation of Kinyererzi I gas-powered power project whose construction is behind schedule.
Tanesco Director General Dr Tito Mwinuka said only $59 million (Sh132 billion) out of $189 million (Sh422 billion), which is needed for the implementation of the extension of the project has been released so far.
Kinyerezi I and Kinyerezi II are both gas-powered power projects in the outskirts of Dar es Salaam and ar the country's planned key source of cheap electricity in the near future. The plants are to tap into natural gas produced in Mtwara and piped to Dar es Salaam.
Yesterday it emerged that Kinyerezi I has not progressed much since its launch nearly two years now.
Dr Mwinuka made the appeal yesterday during a visit to the site by deputy minister of energy and minerals Dr Medard Kalemani.
Dr Kalemani was visiting the site in the wake of concerns on the slow progress of the works amid reports that the funding hitch was the main reason blamed on the stagnation.
Last week there were also reports that some of the power plant's equiment were being held at the Dar es Salaam port due to non-payment of import tax. The ministry was expected to either clear the tax due or seek a government waiver on the machines.
According to Dr Mwinuka the government has already released Sh110 billion which was required for the implementation of Kinyerezi II power project jointly funded by the Japanese.
The government is expected to shoulder the bill for Kinyerezi I extension.
Dr Mwinuka said the implementation of Kinyerezi I project has been completed by 35 per cent while that of Kinyerezi II has been completed by 63 per cent.
The Tanesco boss added that upon completion of the implementation, the two project will produce 425 MW of electricity.
Speaking during the tour Dr Kalemani directed Tanesco to make sure that Kinyerezi II power project, which upon completion in August 2018 will produce 240 MW, starts to produce 30 MW in December.
The deputy minister also directed Tanesco to collect three generators, which are being held by TRA at Tanzania Port Authority after before Monday.
"You should also seat with the Treasury Registrar and TRA and discuss the possibility of exempting tax machines, which will be used in Kinyerezi power projects," said the deputy minister.
Meanwhile, Dr Kalemani directed Dr Mwinuka to suspend Tanesco manager in Mbagala branch for failure to supervise a project to construct a sub-station. He issued the directive during his tour of the project site.
Source : http://allafrica.com
