TZ-POWER VI

closed

The main objectives of the project are to: (a) help meet the growing demand for electricity at least cost; (b) help the government restructure the power sector to promote efficiency and private investment; (c) continue improving energy efficiency by reducing system losses, upgrading service quality, and supporting demand side management initiatives; (d) provide training and technology to staff of sector institutions; and (e) promote the development and operation of gas-fueled generation by private investors. The project consists of three main parts. The first part, which the Tanzania Electric Supply Company Ltd. (TANESCO) will implement, includes: (1) the 180 MW first stage of the Lower Kihansi hydroelectric scheme; (2) expansion, reinforcement, and loss reduction in the distribution systems of major load centers; (3) vehicles, tools, and meters to improve distribution and commercial operations; (4) completion of rehabilitation of the Kidatu hydroelectric plant; (5) management support and training; (6) computerized management information systems, and services to support TANESCO's decentralized operations; (7) studies including tariffs, assets valuation, power system master plan, hydroelectric plant feasibility, and distribution standards; (8) demand side management activities, including audits and advertising; (9) upgrading of the dispatch center; and (10) provision of workshop equipment. The second part, which the Zanzibar State Fuel and Power Corporation (ZSFPC) will implement, includes: (a) a study of the operation of ZSFPC to define feasible options for its future structure; (b) a commercial manager to oversee commercial operations until the completion of the utility restructuring; and (c) prepayment meters and associated materials to help improve collections. The third part, which the Ministry of Water, Energy, and Minerals (MWEM) will implement, includes: (1) a study of the structure of the power sector and its associated regulatory framework in Tanzania to define options for restructuring to improve efficiency, and to explore ways of involving the private sector; (2) consulting services to promote private sector financing and operation of thermal generation using gas from Songo Songo; (3) development of generation (about 9 MW) from the Mnazi bay gasfield in a joint arrangement with the private sector; and (4) training and office technology for energy staff of the ministry.