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Tanzania presents Power Sector Master Plan at Financing Options Workshops

In collaboration with the World Bank , the Tanzanian government last week held a two-day workshop in Dar-es-Salaam on Public Private Partnership (PPP) Awareness in the Energy Sector at which the Canadian consulting firm, SNC-Lavalin International Inc., presented a 25-year Power Sector Master Plan (PSMP) for Tanzania (2006-2031) which was financed by the African Development Bank.
The event brought together key development partners such as the World Bank, the European Investment Bank, the African Development Bank and the Norwegian embassy. The workshop was also attended by private sector players as key stakeholders with discussions focusing on their role in potential PPPs and the role of IFIs/MDBs in such partnerships.

AfDB ResRep Ms. Moyo used the occasion to make a presentation on “Financing the Development of Power Sector Infrastructure for Fast-tracking Economic Growth of Africa” which highlighted the AfDB’s various financing instruments and opportunities to access these funds to develop the energy sector. The presentation also underscored the AfDB’s role in promoting PPP awareness, pointing to the institution’s ongoing interventions in the energy sector in the country.

The Tanzanian Energy and Minerals Minister, William Ngeleja, called on the PSMP framework to provide proper means to achieve reliable and sustainable electricity supply in the short, medium and long term, as well as address electricity shortages in all economic sectors. The main objective of Tanzania’s new Power Sector Master Plan, financed by the AfDB, is to identify the most cost-effective generation and transmission expansion plans for Tanzania. The plan explores various power generation sources which were discussed during the workshop, including hydro, diesel, geothermal as well as much-needed investment estimates based on projected load growth during the 2007-2057 period.

The PSMP study revealed that the power load in 2006 was about 630 MW, reflecting a critical demand deficit in the country. Less than 10% of Tanzanians currently have access to electricity. With regard to the country’s current power transmission situation, 4,800 kilometers of 400 KV transmission line and 850 kilometers of 220 KV are in immediate need. The Master Plan estimates a massive capital expenditure requirement of $8 billion with US$6.1 billion for generation and US$2.2 billion for transmission, an amount which will require innovative financing modalities and joint efforts in the form of PPPs if the PSMP is to be effectively implemented.

Additional information:
News date: 06/05/2008

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