Aggreko Ubungo Temporary Power Station

distressed

Failure

TANESCO, the company responsible for generating and distributing electricity to customers in Tanzania and Zanzibar, awarded the contract to Aggreko to supply a temporary power to Tanzania Electric Supply Company (TANESCO) in form of 40 MW of gas-powered generation as a part of emergency measures being implemented to avert a prolonged shortage of electricity supply resulting from an extended drought. TANESCO also chose Aggreko due to its ability to achieve the delivery deadline and its commitment to provide 24-hour support service. The cost was estimated to be US$61.0 million (T.Shs. 70.7bn). Under the agreement, Aggreko designed and supplied a full turnkey gas power solution to TANESCO, including equipment mobilization, installation, operation, servicing and maintenance of the project. The equipment, part of Aggreko’s fleet of gas powered generators, was supplied with transformers, switchboards and a fully stocked onsite store with all spares and consumables required for the 2 year project duration. Aggreko supplied the Gas Power solution to TANESCO in two phases. Generators were transported from Aggreko International’s headquarters in Jebel Ali, UAE for phase one which became operational on October 18th 2006. Equipment for the second phase was airlifted to the site from Aggreko’s holding facility in Europe due to the urgent need of power locally. This enabled Aggreko to supply the full 40MW on December 7th, 10 days earlier than stated in the Emergency Supply Agreement with TANESCO. The gas supply for the project is being supplied by the Songo Songo gas field offshore Tanzania. The power plant was still operational in June 2011. In June 2011, the contract was renewed for one year. The Ubungo plant was active from 2006 until 2008. By 2011, the government signed a new deal with Aggreko to supply 100MW of rental power from two locations, Ubungo and Tegeta. Did the project run for 2 years and then quite, or was it STILL active by 2011? In 2011, Aggreko signed a new deal with the GoT to supply 50MW at Ubungo and 50MW and Tegeta (see that project for details).

Energy

World Bank Group

Project

Commercial, Natural Gas, Power Generation (CCGT), Government, Residential