25 January 2013

Tanzania: Tanesco, Finnish Firm Strike Deal

THE Tanzania Electric Supply Company Limited (TANESCO) and a Finnish company, Eltel Group Oy, have signed a contract to improve power supply in Dar es Salaam.

TANESCO acting Managing Director, Eng. Boniface Njombe, said in Dar es Salaam that the project worth 48bn/- would involve the construction of underground high voltage cables for the first time to avoid major environmental damage in the city centre.

"The project would help to address various challenges facing the company, including deteriorated infrastructures which cause energy losses," said the Tanesco boss during a signing ceremony which was attended by the delegation from Eltel Group Oy and the Finnish Ambassador to Tanzania, Ms Sinikka Antila.

He said the project covers the construction of one new 132/33kV substation at the city centre and the extension of Ilala 132Kv substation (feeder bay plus gantries) as well as construction of 132Kv underground cable connecting Ilala and new City Centre substation.

Eng. Njombe further pointed out that the project, to be completed in two years, would cover the reinforcement of Sokoine and Kariakoo 33/11Kv substations whereby the 33Kv underground cable network would be constructed to connect Sokoine, Kariakoo and Railway station substations.

He said the project would also cover the 132 Ring closure from Makumbusho substation to new city centre substation with underground cable and the expansion of High Voltage of 132Kv Remote Terminal Units (RTUs). The Finnish Ambassador to Tanzania, Ms Sinikka Antila, said the main portion of the project is financed through a grant from the Government of Finland and Tanesco would be responsible for the remaining part.

"Through this project Tanesco will receive a modern Distribution Control Centre for the supervision and control of the entire Dar es Salaam distribution network," she said. The ambassador said the New City Centre substation would provide major capacity increase in the city centre area where the electricity distribution was suffering from insufficient and obsolete equipment at the time when new high-rise buildings and other construction activities are demanding more power.

"New indoor type substation with underground transmission connections means better reliability in the form of fewer power cuts and less need to use standby diesel generators," she stated. She noted that the 132kV high voltage cables and indoor type 132 Kv substation are new technology for Tanesco thus the project includes extensive training programmes for the operation and maintenance of the new equipment.

The project started in October 2010 with planning and design activities, including Environmental and Social Impact Assessments. The contractor was selected through International Competitive Bidding in 2012. The consultant of the project is Hifab Oy from Finland.

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