Tanzania Daily News (Dar es Salaam)

Tanzania: Singida 100 Megawatts Power Project in Pipeline

THE International Finance Corporation (IFC), a member of the World Bank Group, has partnered with Aldwych and Six Telecoms to develop a 100 MW wind farm in Singida, in a bid to enhance power supply reliability, decreasing the need for costly fuel imports and helping to fight climate change.

Being developed by Wind East Africa, the Singida project seeks to be the country's first wind energy power project. The project is a result of the government push for diverse energy sources, as drafted in its recent policy on renewable energy.

The total project cost for the wind farm is estimated at US 285 million dollars, of which IFC, Aldwych and Six Telecoms will contribute US 18 million dollars during the development stage and US 71 million dollars in total equity.

Located 700 kilometres from Dar es Salaam, the Singida wind farm will produce power through wind turbines to help diversify Tanzania's electricity away from hydropower. Singida will also provide power at more stable cost, as tariffs for wind energy remain relatively constant as no fuel source is required.

The farm will be owned by Wind East Africa and operated by a management company led by Aldwych and Six Telecoms. "IFC invested in Wind East Africa's Singida farm to support a pioneering energy project that can serve as an example to the entire East African region," said Oumar Seydi, IFC Director for East and Southern Africa.

Adding; "With growing demand for electricity in Africa's economies, independent power projects like Singida can add much-needed capacity to the power grid. Aldwych International and Six Telecoms' participation demonstrates how the private sector can advance government efforts to increase energy security."

Mark Gammons, Project Director for Aldwych, said, "Having been involved in the successful development of the Songas gas to electricity project, Aldwych's senior management team has deep experience in and a strong belief in the Tanzanian market. We believe this ground-breaking project will help develop the Tanzanian power sector and also the local economy around Singida."

Rashid Shamte, Founder and Head of Group Strategy at Six Telecoms, said, "As a Tanzanian company in telecoms, we were faced with the challenge of deciding how to best diversify our portfolio. The crippling power rationing in our country presented Six Telecoms with a great challenge in our operations, so this project was a compelling option.

He said Six Telecoms applauds the leadership of TANESCO and the government of Tanzania for initiating the wind measurement campaign in selected areas of the country, for making the wind data available to all interested parties. In addition to the investment, IFC will assist in the overall project development.

IFC will lend its experience and expertise to project structuring process and to ensure that the project meets the appropriate environmental and social standards.

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