East African Business Week

DAR ES SALAAM - Tanzania has moved to rehabilitate the 71-year hydropower plants in Kilimanjaro and Mbeya regions by inviting international and local companies to bid for the rehabilitation works.
The Tanzania Electricity Supply Company TANESCO) says the rehabilitation of the two near obsolete hydropower plants is intended to boost power supply on the national grid.
In an interview with  East African Business Week in Dar es Salaam, recently, the Managing Director of Tanzania Electric Supply Company Limited, William Mhando, said his company, intends to revamp the hydropower plant at Kikulete (1.16MW) in Kilimanjaro and Mbalizi (0.3MW) in Mbeya region to boost power production.
"In 1996, consultant Lahmeyer International, who was engaged to carry out a rehabilitation feasibility study of the two plants, found that the rehabilitation of the plants was technically and economically feasible," said  Mhando.
He said that the two plants were constructed between 1930 and 1950, but stopped operating between 1984 and 1984.
"Following the power blackout which is still dogging the country, we have decided to reinstate the two facilities to boost power availability in the country," Mhando said.
He noted that this strategy of calling private firms to venture into this project is within the energy policy of the country which recognizes the importance of private sector participation in development of the energy sector which is the engine of industrial development.
According to Mr. Mhando, the successful bidders will have the option to lease operations for 15 years to recoup their expenses. Tanesco officials say the Kikuletwa plant in Kilimanjaro will have capacity to supply electricity to more than a quarter of Kilimanjaro region.
In another development Brazil has promised to assist Tanzania to develop the energy sector and bring to an end the ongoing power crisis, which is adversely affecting economic, industrial and disrupting social activities.
Brazil has already shown interest in providing technical assistance to Tanzania in developing hydro-power generation project at Stiegler's Gorge on the Rufiji River.
During talks with the Prime Minister, Mizengo Pinda, early this month in Brazil, the Brazilian Minister for Energy and Minerals, Edson Lobao, said they would do so by transferring technology and expertise to Tanzania under bilateral and technical co-operation. Laboa said Brazil had a vast experience in generating electricity and he would direct the state-owned Brazilian firm, Petrobras, to find ways of addressing the matter. "We have a lot of experience in the technology of generating electricity and Petrobras will work with the Tanzanian government to address shortages of electricity," said Mr. Lobao.