The blueprint availed to East African Business Week in Dar es Salaam last week shows that in short term it requires
As in a long run the government has embarked on reforming the Electricity Supply Industry (ESI). It is estimated that the ESI Reform Strategy will be implemented over a period of 11 years and will require about
This amount would be used for paying Tanesco's debt (
This initiative is the biggest undertaking in electricity sub-sector in
The ESI Reform Strategy and the Roadmap describe the intended reform initiatives and key actions covering the period from 2014 to 2025.
The newly released energy blueprint dubbed Electricity Supply Industry Reform Strategy and Roadmap 2014-2025, shows that the government hopes to increase installed generation capacity from the current 1,583MW to over 10,000MW.
The blueprint shows that nearly 4,000MW will be generated from natural gas and 200MW from geothermal.
"So as to realize these targets, the country requires adequate, reliable, affordable and environmentally friendly electricity supply," the Minister for Energy and Minerals, Prof
As a result, Minister Muhongo said in a blueprint that the installed power capacity must increase from 1,583 MW (
At present, there are four primary sources of funding for investment in the power sector which are the government, Tanesco, development partners and financial institutions.
For decades, while the government and Tanesco have been the primary financiers with some forms of support from development partners, the projected growth exceeds existing resources.
Economists believe that the immediate availability of these funds could be a challenge as the government depends on taxes as its main source of revenue however its means of collecting revenue still weak.
Therefore, the private capital investment becomes an important option to bridge the financing gap within the context of appropriate controls and balancing the interests of both investors and consumers.
The implementation of the plan will engage the private sector in a shift that will see the financing of power projects move away from government hands.
ESI Reform Strategy aim at meeting the current and future demand for electricity; reducing public expenditure on ESI for operational activities; attracting private capital; and increasing electricity connection and access levels.
The ESI Reform Strategy and the Roadmap have been prepared by the government in consultation with various key stakeholders including the general public, academia, private sector, financial institutions and
The intended major outcomes of the ESI Reform Strategy and the Roadmap include: increased efficiency; quality services and goods; availability of affordable power; satisfaction of the client; satisfaction of the business partners and their shareholders; increased transparency and competition; and abolition of subsidies in the electricity sub-sector.
Tanesco also imports power
About 24% of the Mainland Tanzanian population is connected with electricity services of which 7% is in rural areas. Demand for electricity is on average growing between 10% and 15% per annum.
To achieve the desired socio-economic transformation,
Most Popular Stories
- Businesses, Investors Pressing for Green Policy
- Iran Digs in on Underground Nuclear Site
- 'The Voice' Sounds Different This Season
- Chrysler and Google Launch Virtual Plant Tour
- Existing Home Sales in U.S. Fell in August
- Lower Used-Car Prices Roil the Auto Industry
- Investors Fret Yahoo's Future, Stock Dips
- NSHMBA to Rebrand With New Name, Logo
- Perry Wants to Skip Court for Foreign Trip
- Hispanic Designer Honored As Rising Star