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Heated debate on power leaves Parliament divided
2008-04-22 10:43:05
By Judica Tarimo, Dodoma
Parliament was divided yesterday over the draft Electricity Supply Bill, with some legislators opposing the entrance of private investors in the energy sector in a hot, prolonged debate that started last week.
The government is facing a big test of persuading MPs to endorse the bill, thus paving way for enactment of the 20008 Electricity Act, which will open doors to private investors in the already troubled power sector.
Unlike other bills, about 50 legislators had registered to contribute their views on the draft Bill, due to the sensitivity of the sector.
According to the Speaker of the National Assembly, discussions will be concluded today evening due to a long list of contributors.
An open approach as proposed in the proposed legislation, which allows private players in the sector, is a bone of contention.
Some MPs see the move as selling national energy to foreigners who would be coming under the guise of investors.
Bariadi-East opposition legislator John Cheyo said: ``We should not allow private sectors in the sector by 100 per cent. How can we dare open doors to foreigners to utilize our vast and God-given gifts gas, core, and other energy resources?``
``We should not repeat same grave mistakes we had made in the mining sector.
We commissioned foreign investors to handle these projects but Tanzanians are not benefiting at all,`` he said.
He criticized a provision in the proposed legislation which removes restrictions on investors in the energy sector, saying it would provide room for collusion between energy sector regulators, Tanesco officials and investors.
``My friends, no commercial operators will be ready to go to the rural areas once you remove a clause which provides for restriction,`` he stressed.
Opposition MPs proposed a public-private approach in the electricity investment, especially in the transmission of electricity, rather than allowing foreigners 100 percent project ownership.
``The government must have a hand in these power transmission investments. It should own at least 25 per cent of the shares,`` said Cheyo.
Godfrey Zambi (Mbozi-East, CCM) wants the government to scrap off tax exemptions to investors as provided for in section 18 of the proposed power bill on the ground that it provides loopholes for corruption.
``We have had bad experience of taxes and other exemptions given to investors in many sectors in this country.
These exemptions have been misused by investors for their personal gains at the expense of millions of Tanzanians,`` said the MP.
Opposition legislator Suleman Hamad (Chambani, CUF) described the bill as a new technique by corrupt people in the system to pocket money.
``The government wants to pass the bill on the promise that Energy and Water Utilities Regulatory Authority (EWURA) will scrutinize the investors.
But the same EWURA has proved a failure in regulating the energy sector. Don`t cheat people.
Why shouldn`t we stabilize first before allowing the private investors?`` asked the MP.
Siha legislator Aggrey Mwanri (CCM) criticized emergency power supply component proposed in the new electricity Act, saying it would plug the country into dubious and corrupt power contracts worth billions of shillings.
``Provision on emergency power is a source of grand corruption. We have good experience of past dubious contracts in this sector,`` said MP.
He said power sector should not be left in the hands of private investors.
The MP asked the government to strengthen Tanesco and make it the chief controller of the sector.
Dr. Bimlithi Mahenge (Makete, CCM) criticized MPs who hailed the new bill as a durable solution that would drive Tanzanians out of long-standing electricity crisis.
``We should be careful. We should not see the new power bill as a liberator.
Foreign investors are eyeing for windfall profits, although they might not provide any services.
I suggest that Tanesco remains the overall regulator of all private players in the sector,``said legislator.
But Fatma Mikidadi (Special Seats) praised the new power Act as one of the positive government moves aimed at resolving the power crisis and making their service accessible in the countryside, especially in the rural settings.
``There are investors currently operating in the southern regions, who can supply electricity to the southern and other regions at low cost but have been prevented by the current and outdated electricity Act.
The endorsement of the new bill will allow rural dwellers access electricity,`` said the MP. Reynald Mrope (Masasi, CCM) said upcountry regions facing serious power crisis would be relieved of the problem with the coming of the new Act.
``The new law will end Tanesco`s monopoly and allow private investors to supply electricity at affordable cost.
There is an investor in Mtwara who is ready to provide electricity, with connection charges ranging between 60,000/- and 80,000/, which is cheaper compared to Tanesco connection rates of between 400,000/- and 500,000/-,`` said the legislator.
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