Tanesco for restructuring

The Minister for Energy and Minerals, Professor Sospeter Muhongo.THE Minister for Energy and Minerals, Professor Sospeter Muhongo.

THE long awaited restructuring of Tanzania Electricity Supply Company Limited (TANESCO) is about to start, with government now looking for a consultant to advise on how best the ailing power utility will be unbundled.

The Minister for Energy and Minerals, Prof Sospeter Muhongo said in Dar es Salaam on Wednesday that already the African Development Bank has agreed to provide financial support for the consultant services.

“We must unbundle it and restructure it. The work has started,” the Minister said in reference to TANESCO at a public meeting where his ministry publicly declared the government’s resolve to execute 19 mega energy projects by 2015.

Prof Muhongo said already TANESCO management had submitted its proposal for reforms, which will be studied together with that of the consultant and another one from the ministry.

“There will be three documents. We are determined to reforms TANESCO and no stone will be left unturned,” the minister vowed. 

TANESCO, blamed for inefficiency, embezzlement and all problems facing the country’s energy sector, will be unbundled into separate entities responsible for power generation, transmission and distribution.

The restructuring plan is aimed at enhancing efficiency and attracting investments in the energy sector, in line with the country’s growth blueprint, Vision 2025. 

Prof Muhongo said currently, the government, through TANESCO has managed to supply electricity to about 20 per cent of the country’s population 45 million, with the target being to reach 30 per cent by 2015.
Source: The Daily News, reported by Henry Lyimo in Dar es Salaam
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