Nairobi — Britain's Aggreko Plc has won two new contracts for the provision of temporary power generation in Uganda and Tanzania in a deal estimated at Sh5.1 billion ($70 million).

Aggreko will now supply to Tanzania Electric Supply Company (Tanesco) 40mw of gas-powered generation to supplement the national grid.

The Ugandan contract for 50 mw of generation capacity is in addition to the 50mw installed last year. This in effect means that Aggreko will now be supplying about 40 per cent of the country's total grid capacity.

The new contract is a reprieve for Uganda, which has since February been faced with serious power shortage that has forced Uganda Electricity Transmission Company Limited resort to supplying power to consumers on alternate days.

Aggreko has over the last two years played a key role in supporting the economic development of the region by supplementing the grid supply and alleviating the power shortage in the region.

It was contracted by the Kenyan Government to supply 100mw emergency power from its Embakasi plant to forestall the possibility of a power rationing that would have slowed down economic growth.

However, following heavy rains that helped raise dam levels, plans are under way to connect the Aggreko unit to the grid to back power exports to Uganda, which is undergoing one of its worst energy shortfalls. KenGen managing director, Mr Eddy Njoroge says negotiations are under way for the deal. This shortfall of power is a result of economic growth driving increased demand, and low rainfall in recent months that had reduced the country's hydro-power generating capacity. Uganda has set aside $108.3 in this year's budget for installing thermal generators and for launching an Energy Fund to build two hydro-dams on the Nile in a comprehensive plan to address power shortages that has suppressed economic growth.