BY CORRESPONDENT
21st June 2013
Region`s demand for electricity plant now answered
The move is seen by many as an important step in the wake of gas driven crisis in the Tanzania’s south eastern most region.
A “Cooperation Agreement” was formally signed by Jay Ireland, President and CEO-GE Africa, and Don Brindle, General Manager of Symbion Power Tanzania Limited and witnessed by Energy and Minerals minister Prof Sospeter Muhongo.
The world’s power giants signed the multibillion agreement yesterday and the government is calling it a ‘testimony of its commitment to respond to the Mtwara crisis’.
The envisaged Tanesco-Symbion project is part of Tanesco’s expansion plans and will also include construction of a 650-km transmission backbone from Mtwara to Songea where it will be connected to the national power grid through a line extending from Makambako to the Ruvuma Regional headquarters. Under the pact, GE Africa will cooperate and collaborate with Symbion Power by providing technical and development support, including engineering studies, financial structuring and support with lenders and guarantee providers.
Speaking at the event, Prof Muhongo hailed the public-private partnership between Symbion Power, GE and Tanesco and expressed hope that the project will significantly contribute to the government’s resolve to lift up the country to a middle-economy status.
“At the moment, our economy is growing at 7 percent annual rate and anticipation is to reach 8 percent growth rate in the next one or two years and subsequently 10 percent, a target declared in the National Development Vision-2010-25,” the Minister said.
“These goals cannot be realised if we don’t have massive investment in key growth sectors such as energy.
That’s why this project is crucial since it will enhance development of the energy sector and accelerate national growth targets, as whole,” he explained.
Jay Ireland, President and Chief Executive Officer, GE-Africa, reaffirmed his company’s commitment to partner with stakeholders to accelerate economic growth in Tanzania and the rest of Africa for that matter.
“Slack of sustainable power supply continues to hamper African progress and Tanzania is no exception …,” he pointed out.
Tanzania is growing rapidly, he said, and in order to enhance sustainable growth, “we need to overcome inhibiting challenges such as interrupted power supply.
This project will do that,” he pledged.
Don Brindle, Symbion Power-Tanzania General Manager expressed his company’s enthusiasm in continuing its long-term relationship with GE, noting that natural gas is an environmentally friendly and efficient energy source.
“Working with GE on the project will make our work much easier as we will have access to proven technology and technical advice that is crucial for accelerated completion of this project,” said Brindle.
Tanesco Managing Director Felchesmi Mramba said involvement of the two US power giants in the Mtwara project will expedite the process and significantly boost the country’s electricity production capacity and subsequently offset the power blues that have plagued the nation for years.
The 400MW Mtwara project is expected to ease current tensions and tug of war between residents and regional authorities in Mtwara over the construction of the Chinese-funded gas-pipeline from the region to Dar es Salaam.
Mtwara residents reject construction of the pipeline on grounds that it will not benefit the residents. As such they demanded that the government set up a gas-driven power plant there and with this project, Mtwara’s demand appears to have been met.
SOURCE: THE GUARDIAN
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