Govt scrambles to get 21.5bn/- for power line route payouts

16Sep 2017
Polycarp Machira
The Guardian
Govt scrambles to get 21.5bn/- for power line route payouts

THE government needs Sh21.56bn to compensate 855 residents of Kisarawe, Kibaha urban, Kibaha rural and Bagamoyo who left habitats for a power project, the legislature was told yesterday.

The Deputy Minister for Energy and Minerals, Medard Kalemani

The Deputy Minister for Energy and Minerals, Medard Kalemani said the government through the Tanzania Electric Supply Company (TANESCO) is working on a project to build a 400 kilovolt power line from Kinyerezi to Arusha.

He said the 600 kilometre line is divided into various segments, spaced out at 40 kilometers from Kibaha to Zinga and 60 kilometers from Segera to Tanga. The project also entails power cooling stations at Chalinze, Segera, Kange in Tanga and Zinga in Bagamoyo.

“Evaluation on compensation costs was done in 2015 and the residents will soon be paid before the project begins,” he said.

He issued this explanation when responding to a question by Kibaha MP Francis Koka (CCM) who wanted to know when people who are required to move to facilitate the project would be compensated.

“When will these people be paid their money since they were forced out of their land almost three years ago?” he asked.

The deputy minister noted that the project is part of a bigger plan to increase access of electricity in the country. Tanzania hopes to triple its power generation output by 2020, boosting access to the national grid.

Under the plan, the government hopes to increase output to 4,915MW from 1,501MW currently, and boost electricity connections to 60 per cent of the country’s population of about 51 million people, from 36 per cent currently.

The plan will cost $11.6 billion in the short term and will be funded 70 per cent by debt, with government resources catering for the balance.

The cost includes investments in generation, transmission and sub-stations. Generation accounts for almost 80 per cent of investment, according to the Power System Master Plan (PSMP) released by the Ministry of Energy and Minerals.

Natural gas-fired plants will constitute 40 per cent of generation with a mix of hydro, wind, solar, geothermal and nuclear, it is projected.