Tanzania Electricity Supply Company (TANESCO)

concluded

Net Group Solutions, a South Africa-based company, took over the management of Tanesco in April 2002 under a 2-year management contract. Tanzania Electricity Supply Company (TANESCO) is a vertically integrated, state owned utility, licensed to generate, transmit, distribute and sell electricity throughout the country. Net Group was contracted to make TANESCO turn profitable ahead of its privatization. The firm is charged with managing TANESCO's operations, maintenance and expansion. NetGroup received US$ 2.6 million as fixed fee for the two year contract. The contract was performance based and included a success fee based on improvements to revenue collection and operating efficiency. Swedish International Development Corporation Agency (SIDA) provided a grant for the fixed fee portion of the contract through a World Bank trust fund. There was general agreement that the contract with NetGroup was successful. In 2004, the contract was initially extended by three months to allow time for negotiations for an extension by either two or five years. The contract was finally extended for an additional two years until December 2006. The contract was concluded in December 2006, and Tanesco returned to the government. http://wbln0018.worldbank.org/ppiaf/activity.nsf/0/98b7fea48b7c7a2885256a7d00553f86?OpenDocument