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Bad power contracts to keep majority in the dark
 
2008-04-13 10:47:37
By Business writer

It may sound a treasured spirit for the combined efforts geared at fighting corruption in this country, but to a Dar es Salaam aged man Hassan Kambangwa the greatest question at the moment is whether he will one day see the light of electricity in his home.

Every time he tries to raise some money so that he may one day walk into the offices of the power utility company applying to be connected, the company hikes power connection tariffs.

However, Kambangwa is not alone in this predicament. Most ordinary Tanzanians are not able to pay for power connection. Although poverty is partly to blame, lack of incentives from the power utility company, which includes excessive power connection tariffs, are the major snag to improve peoples` lives.

The state-run utility monopoly, Tanzania Electric Supply Company (TANESCO) blames bad power generation contracts entered into between the government and private companies.

The media, pressure groups and legislatures are up in arms about corrupt deals that have plunged the country into where it is today, making it difficult to give power to Kambangwa.
This is the concern of many people across the country who largely consider electricity a luxury now.

Experts on procurement have chipped in, warning that the country may keep getting into bad contracts should there be no effective measures to abide by procurement rules.

At a recent seminar, procurement experts, described procurement rules as essential tools for ensuring contracts or purchases that adhere to strict standards.

``Tanzania and Kenya have recently adopted new procurement Acts.

As the largest global institute we are obliged to train more professionals to meet the required international standards,`` said the experts, during the seminar.

Dr. Didas Masaburi, an East African legislator noted that poor contracts were a huge snag slowing down the country`s development. Tanzania has suffered a lot due to poor or rather exploitative contracts that have led to unnecessary costs.

``It`s a delicate profession which needs to be handled with care. Violation of procurement rules have put this country into huge losses that would have been avoided,`` said Masaburi.

  • SOURCE: Sunday Observer
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