Category Archives: Energy

THE MALAYSIAN-FINANCED POWER PLANT

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On June 7 Majira alleged that while the Prevention of Corruption Bureau (PCB) had begun investigating the government’s contract with the Malaysian-financed Independent Power Tanzania Ltd (IPTL) (see earlier issues of TA) it had found that four ministers and one MP had been involved in what it called ‘the shady deal’. The paper said that, while the initial negotiations had been going on, one minister had been offered $200,000 which he had turned down. According to the paper the PCB’s investigation had found a ‘hot potato’ when it seemed that some senior ministers might have been implicated. The PCB was said to have left the matter with President Mkapa to deal with. The Parliamentary Sectoral Committee on Trade had earlier urged the government to take legal and disciplinary action against officials who might have been involved.

The government is now paying Shillings 3 billion per month for electricity from IPTL. A CCM MP said that, as TANESCO was not involved in the IPTL, all blame should be borne by the government. He suggested that the IPTL plant should be bought by the government so as to stop the payment of huge amounts of money every month. The leader of the opposition in the National Assembly Dr Kabourou announced that he was also investigating the matter and might be able to name the ministers involved later.

Meanwhile, Minister for Energy and Minerals Daniel Yona said that 127 villages were supplied with electricity last year.

ENERGY

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Energy is, of course, easily the largest single cause of Tanzania’s economic problems. With nearly half of her foreign exchange resources now being devoted to oil purchases, a solution of the country’s energy problems is clearly urgent. In the short run, the foreign exchange situation can only be relieved by an increase in exports, since appreciable fuel savings are hardly possible. In the longer run, the country may expect some relief from the closure of oil-burning power stations with the progressive substitution of hydro-electric power (see Bulletin of Tanzanian Affairs, No.8 p.4). There is also some hope that exploitable domestic oil resources may be found on and near the coast. A seismic survey recently carried out by NORAD now suggests that oil is present in appreciable quantities and consideration is being given to World Bank support for an oil exploration project based on two wells on the mainland at Songo Songo and two offshore islands. Natural gas supplies are also available and the possibilities of conversion for the manufacture of nitrogenous fertilisers is being studied. A power sector study financed by Canada (CIDA) is dealing with electricity supply prospects. The International Institute for Environment and Development has been commissioned to produce a medium term energy policy which it is hoped will be available in time to be included in the next five year plan.