17 July 2013

Tanzania: Dar to Export Electricity Soon

TANZANIA will start exporting electricity by the end of next year, after increased production of the energy through various means including natural gas and have a surplus of 500MW.

The Minister for Energy and Minerals, Prof Sospeter Muhongo, said in Dar es Salaam that by 2015 Tanzania will be producing a surplus 1,500MW.

Prof Muhongo made remarks after witnessing the signing of an agreement for construction of 600MW gas-fired Kinyerezi III power plant estimated to cost over 400bn/- (about US$300 million).

The agreement was signed between Tanesco and China Power Investment Cooperation Limited (CPI), which was also witnessed by the Chinese Ambassador to Tanzania, Mr Lu Yong Ring.

The minister said that exporting electricity would, among other things, help in having a reliable budget by ensuring that prices of commodities remain stable and in turn help to boost the country's economy. He noted that with enough electricity, more investors would be attracted and economic activities would increase.

Tanesco Acting Managing Director, Mr Felschemi Mramba, said after the signing ceremony that construction of the plant is expected to start shortly after completion of the gas pipeline from Mtwara to Kinyerezi.

Both the minister and Mr Mramba stressed that discoveries of natural gas will benefit all Tanzanians, since it would be used as a national commodity to be exported and bolster government's coffers. The President of the CPI, Lu Qizhou said his company has the capacity to produce electricity by using many sources and noted that the power was crucial for development.

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