Tanzania: Second Private sector advised to invest in power projects

THE private sector should invest in the power sector so as to stimulate sustainable economic development.

The call was made by Ester Mkwizu, Chairperson of Tanzania Private Sector Foundation (TPSF) at the Breakfast Talk held in Dar es Salaam on Monday.

“It is time to invest more on power sector. Let us have our own plans. Local investors can enter into joint ventures with foreign partners and invest in the power sector”, Ms Mkwizu said.

The Energy Agency Act (2006) allow the private sector to enter into Power Purchase Agreements (PPAs), Independent Power Projects and small power generation projects covering biomass, bio-fuels and wind power energy.

She said that there are opportunities which could become broader with initiatives on rural power.

“With Rural Electricity Authority in place, we only need to ask ourselves how fast we can take advantage of such opportunities”, she said.

She gave an example of Tanga Region where the private sector could participate through joint venture or initiate projects to generate electricity.

“We need training. TANESCO needs to be empowered, so as to enhance its capacity to supply electricity effectively and efficiently. We therefore advice the government to increase its budgetary allocation for the public power company”, she added.

The TPSF Chairperson also called upon banks to finance power projects by issuing soft loans so as to stimulate private sector’s sustainability and attract both local and foreign investors.

“Local investors who wish to invest in the power plants are encouraged to do so.
We need reliable power so as to have sustainable industries. Today is yet another unique opportunity for us to look for lasting solutions so that this country has reliable and stable power generation and transmission”, she said.

The Confederation of Tanzania Industries (CTI) reported last month that at least 50 out of 250 industries have been forced to shut down and lay off their workers for lack of reliable power supply,” she said.

The Tanzania Power Sector Master Plan (PSMP), an African Development Bank (AfDB) supported initiative aims to identify the most cost effective generation and transmission expansion plans.