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Tanesco spends 7.9bn/- in rural electrification
2005-04-21 08:43:24
By Modestus Kessy, Arusha
Tanzania Electrical Supply Company (TANESCO) spent about 7.9bn/- from its own pockets between 2000 and 2003 for the Rural Electrification Projects (REP) around the country.
Tanesco Deputy Managing Director, Steve Van Staden said yesterday in Arusha donors and the government made the rest of the funding for development of REP.
“This means Tanesco contributed 54 per cent in REP during the said period, despite much criticism against the company,” he said.
Staden was speaking at a one-day rural electrification study for stakeholders in Arusha.
He said Spanish government funding helped in the construction of a 132/66/kV, 15mVA substation at Bunda, which is now providing power to Sengerema and Bunda areas in Mwanza and Mara regions respectively.
He said African Development Bank (ADB) approved utilization of a loan balance amounting to 6bn/- for Tanesco’s Electricity IV Project Phase II after successfully completing the main project.
“Scope of works includes power supply to the areas of Makuyuni, Minjingu and Karatu. Grid networks to Same, Mwanga and various other areas in Kilimanjaro and Arusha have also benefited,” he said.
He said on electrification of Utete, as the District Headquarters for Rufiji would be done under the Songosongo Wayleave Village Electrification Scheme.
Meanwhile, the Ministry of Energy and Minerals is now finalising preparation for the establishment of Rural Energy Fund (REF).
According to the address by Commissioner for Energy and Petroleum Affairs Theophilo Bwakea, REA would have a major function of promoting new investment in modern energy throughout Tanzania.
The commissioner called on partners and investors to identify modern energy projects, to provide the training and technical assistance in order to make good rural electrification.
He said funds from Rural Energy Fund (REF) would be used to bring down capital costs of investment in modern rural energy projects.
Bwakea said smart subsidies or grants would be made to eligible projects to co-finance rural electrification.
The rationale behind the move, the commissioner said, was to reduce investors risk and improve their returns on modern rural energy investments.
“It will also lower final cost of energy delivered to rural consumers,” he said.
In principle, all grants will be competitively tendered where by any investor will have an opportunity to bid for grant for any particular project, he said.
“This will ensure both equal access for transparency and fairness whilst at the same time ensuring the most efficient, cost effective means of financing modern rural energy projects,” he added.
At the same time officiating at the same function, the Ruvuma Regional Commissioner, retired Major General; Saidi Kalembo, said rural electrification has been an important factor to the government of Tanzania particularly in its efforts to reduce poverty.
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