TANESCO acquires Wentworth’s 18MW power plant in Mtwara

Mtwara Power Plant
Wentworth Resources on Thursday announced the sale of its subsidiary Mtwara Power Plant to Tanzania Electric Supply Company after reaching a 13.5 million US dollars (21.6bn/-) agreement.

According to a statement posted on its website, the company said it was off-loading its 100 per cent ownership of 18Mega Watts plant to the state power firm including gas-fire power plant and  associated assets. 

Wentworth Managing Director, Geoff Bury, commented on the sale saying; "We believe the sale and purchase of the power plant is beneficial to both parties.

"This transaction provides us with further non-dilutive capital as we look to focus on our core strategy of exploring for hydrocarbons and developing known natural gas resources." TANESCO's Public Relations Manager, Badra Masoud confirmed the purchasing of the plant but said the transaction would not affect current tariffs.

"Tariffs will remain the same - we plan to increase power generation to boost investments in southern regions," Ms Masoud said.

Ms Masoud
Despite the sale, the company said it looks forward to continuing to be a reliable, long-term gas supplier to the Mtwara Power Plant and other parts of Tanzania.

Mtwara Power Plant posted a profit of 206,000 US dollar (329.6m/-) in nine month to September 2011 compared to a loss of 404,000 US dollar (646.4m/-) in 2010, after a revenue increment of 7.0 per cent to 5.2 million US dollar (8.32bn/-).

In June 2010, Wentworth purchased 100 per cent share of the Mtwara Power Plant from Artumas Group.  On completion, Artumas was supposed to receive proceeds of between 8.0 million US dollars (about 12.8bn/-) and 13.2million US dollar (about 21.12bn/-) in cash net of transaction costs.

Last month, Wentworth Resources acquired Cove Energy's Interest in Mnazi Bay Concession. The firm is an independent oil and gas company with gas production and a committed exploration programme in the Ruvuma Basin of southern Tanzania and northern Mozambique.
Source: The Daily News,www.dailynews.co.tz, reported by Abduel Elinaza
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