Japanese firm to pump $1bn into massive new power project

11May 2016
The Guardian Reporter
The Guardian
Japanese firm to pump $1bn into massive new power project

A Japanese company is set to invest $1 billion (2.2 trillion/-) in a gas-and-solar power project which is expected to inject some 1,000 megawatts of electricity into the national grid.

The project to be implemented by Koyo Corporation is aimed at bringing relief to rural communities in the country which in most cases do not have access to reliable power.

The chairman and chief executive officer of Koyo Corporation, Norio Shoji, revealed the investment plan when he met with Prime Minister Kassim Majaliwa in Dar es Salaam on Monday evening.

“We are planning to invest in five key areas such as building a gas processing plant that will use natural gas produced here in Tanzania. This plant will have the capacity of generating 1,000MW of power,” Shoji said.

The Japanese firm also plans to build solar power plants which will be connected to the national grid for the purpose of reaching the most remote parts of the country.

“We will also improve the grid’s power distribution systems so that more power can be harnessed and the surplus can be sold outside the country,” Shoji explained.

He informed the premier that Koyo Corporation is also interested in investing in other sectors such as agriculture, medicine science, industry, and ICT (information and communication technology).

Majaliwa commended the company for showing such keen interest in Tanzania’s power sector to start with, pointing out that the country does need more electricity to successfully carry out its industrialization grand plan.

“The fifth phase government is determined to create an industrial economy that will help to address issues of unemployment and poverty amongst the wananchi,” the premier said.

“(As such), we do need big investments in the energy sector for the southern, northern, eastern and central regions,” he added.

It was also revealed that Koyo Corporation will be investing in the power project in collaboration with a local private energy company, SSF Limited.

An official of SSF Limited, Suleiman Nassor said the company would work closely with the Japanese firm and Japanese government “to ensure that Tanzanians get better lives.”