Reports Leo Odera Omolo.
The recent tour of Tanzania by the US Secretary of State Hilary Clinton, Washington is injecting at least USD 206 million into energy projects in that country that will help boost the country’s power generation.
The money will be used to construct and rehabilitate 24 power sub-stations as will as install a new 100MW sub-marine power cable between the mainland and Zanzibar
The financing is part of deal of a USD 698 million grants extended to Tanzania in 2008 under the Millennium
Challenge Corporation to fund water, energy and infrastructure projects in Tanzania.
During her cent visit to Dar Es Salaam, Clinton said the success of the project will mean Tanzania can cut the present power crisis by over half and boost the country’s economic growth.
“The future of Tanzania depends on the availability of a reliable power service,” she said.
The power shortage has triggered rationing and pushed up the cost of production in the manufacturing sector.
The government plans to spend Tshs 4.7 trillion {USD 2.96 billion under a five year development program that end in 2015 to boost electricity output from 1,000MW to 2,780MW.
An American energy firm Symbion Power LLC will construct a 100MW plant at Ubungo in Dar Es Salaam and another 60MW in the lakeside northwestern City of Mwanza.
The CEO of Symbion Power Paul Hinks was quoted in the local media has government has entrusted his firm with almost USD 100 worth of electrification work across Tanzania.
Energy and Mineral Minister William Ngeleja also disclosed that talks were underway between Pan-African, TANESCO and Petroleum Development Corporation to increase gas supply from 90 million cubic feet to one million cubic feet to meet the rising demand.
“One gas unit produces 15 MW and additional supply from Symbion will step up this to 75MW,”the Minister added.
Symbion Powr management said last week it had signed an interim agreement with Tanesco to sell power to the state-owned utility. The company charges a rate of USD 4.99 per kilowatt hour.
Symbion Power and Pick Electronic Corporation based in Mount Airy, North Carolina, won a contract of USD 110 million and USD 18 million respectively, from the Millennium Challenge and Corporation account to build a sub-station and extend electricity distribution in Tanzania,the us Embassy said in its website.
Early this year Tanzania started the construction and expansion of nearly2,88o kilometers of the national power grid after it acquired USD 65 million from the MCC account.
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