250,000 to get power in Sh881bn project

 

Rural Energy Agency (REA) Board Chairman, Ambassador, Ami Mpungwe speaks with Drem Electrics Ltd, business development manager Bridge Temba, in Dar es Salaam yesterday,  after the signing of memorandum of understanding for power supply in rural.

 

Dar es Salaam. The Rural Energy Agency (REA) yesterday signed contracts worth Sh881 billion to supply power to 250,000 rural households in Tanzania Mainland by mid 2015.

The agreements, signed with various companies, will involve the distribution of electricity in 13 districts and construction of power distribution points in six districts in the second phase of the Rural Electrification Project.

REA acting director general George Nchwali said a big chunk of the money had been sourced locally, while Norway and Sweden would give Sh50 billion.

Four local and five foreign energy contractors signed a memorandum of understanding with REA to undertake the projects.

Mr Nchwali said the firms were picked through competitive bidding.

The chairman of the REA board of directors, Mr Ami Mpungwe, said seven per cent of rural dwellers had been provided with electricity since the authority became operational in October 2007.

“Five years ago, only two per cent of rural residents had electricity, but it is now seven per cent and counting,” he said.

Mr Mpungwe urged local companies to research on various energy sources, saying REA had the money needed for the construction of infrastructure and connection of power to rural residents.

“We have the required financial resources...it is up to you to find ways to turn this money into power for people living in rural areas.”

Mr Mpungwe called for the active participation of the private sector, noting that the government was ready to provide funds.

“The government alone cannot succeed in this...the private sector’s participation is crucial. We need to work together,” he said.

Mr Nchwali said the second phase would be implemented in 14 regions after firms that bid for contracts in 10 other regions failed to meet conditions stipulated by the Public Procurement Act.

“We have floated tenders afresh and will open the bids on October 2, this year,” he said, adding that the second phase would be implemented over two years.

The government plans to have 30 per cent of rural residents provided with power by the end of 2015.

The first phase began in the 2010/11 financial year and is being implemented in 16 regions at the cost of Sh130 billion. Work being undertaken includes the construction of 1,800 kilometres of 33kV power lines.

Mr Nchwali said 1,000 kilometres of distribution lines would constructed in the first phase which ends in December.

He added that 24,000 households, businesses and institution would be provided with electricity in the first phase. The second phase will entail the distribution of power in Buhigwe, Busega, Chemba, Itilima, Kakonko, Kalambo, Kyerwa, Mkalama, Mlele, Momba, Nyasa, Nanyumbu and Uvinza districts.

Power distribution points will be constructed in Tunduru, Mbinga, Ngara, Kigoma, Kasulu and Kibondo districts.

The project will be jointly overseen by REA and Tanzania Electric Supply Company (Tanesco), which will own the infrastructure.

source: the citizen