Washington, DC — As a result of an erroneous media report with regard to its 600MW development project at Mtwara, Tanzania, Symbion Power spokesman Adi Raval clarified the status of the project at the year end. Speaking from Washington, DC he said:
"The Symbion Power Mtwara project is a 600MW combined cycle gas to electricity project that will be developed at the southern Tanzania port city of Mtwara. It is a public private partnership with the government of Tanzania through the national power utility, The Tanzania Electric Supply Company (TANESCO)."
"The power plant will utilize gas from the Mnazi Bay gas field supplied through a government owned pipeline and due to limitations on the availability of gas, the first phase of the project will have a capacity of 400MW, said Mr. Raval. The project has the potential to serve as an alternative to the hydro-electric base load power in countries that neighbor Tanzania given that hydropower has become an unreliable source of electricity in many of them. In Tanzania, low water levels in the dams and the rivers have wreaked havoc on the economy. At present, a number of interconnections with other countries are under development by the relevant governments."
Mr. Raval continued, "It is important to note that all of the studies for the project will expect to be completed by the end of March 2016. After that point, Symbion and TANESCO will start discussions on various contractual agreements that will clear the way for construction of the power plant. Obviously, these agreements still have to be negotiated but there is a clear process set out under the Public Private Partnership law that Symbion and TANESCO are strictly following."
"The scheme is a long term investment which Symbion and TANESCO have developed. Much of 2016, and into 2017 will be taken up raising the finance. It is important to note that this financing process has not yet started. There have been many early stage discussions with potential lenders and Export Credit Agencies which have all expressed interest in the project. We are also in talks with other potential equity investors from a variety of countries around the world, according to Mr. Raval"
The Symbion spokesperson also added "While Symbion is a Power Africa partner, the sources of funding may not necessarily come from the United States."
"Assuming that we reach a satisfactory agreement with TANESCO, we currently expect that construction of the plant and the associated transmission systems will commence in 2017. Completion of the first phase of the power plant will take two years from financial close" said Mr. Raval.
ABOUT SYMBION POWER
Symbion Power is one of the most dynamic American power sector firms in the electricity generation, transmission and distribution industry with an established presence throughout sub-Saharan Africa.