PROCEDURES to invite investors to invest in the energy sector will now be done openly to avoid dubious contracts, Energy and Minerals Minister Professor Sospeter Muhongo has announced.
Prof Muhongo said yesterday that the
ministry is later next month going to start new system of publicly
welcoming interested companies to invest in electricity production
plants, starting with the gas-fired power plant at Somanga Fungu in
Lindi Region, which will produce between 200 and 400 MW.
He said on August 30, the ministry would
start to improve the system of inviting investors in the gas sector by
openly welcoming those who want to invest in Somanga Fungu plant.
Prof Muhongo revealed that his ministry
would extend the invitation internationally so that anyone interested
could bring their offers, which would compete for the contract.
“This will avoid bad contracts that many
Tanzanians have complained about. You must have taken note that some of
us were not yet in office when the contracts were entered. But we find
ourselves carrying the burden of the agreements, which we are not aware
of,” he said.
“We want to get rid of the system
whereby an investor comes and enter into secret talks and later sign the
contracts, which have always been bad for the country,” he noted.
The minister further noted that
corruption-laced contracts in the energy sector have been adding a
burden to the government. He said after the ministry is done with the
Somanga Fungu investment deal, it would move to announce investment
opportunities in other all sources of energy like coal, hydro power and
wind.
He said the investment opportunities in
the energy sector would take on board both local and foreign investors,
who would be interested and qualify for the investment. Tanzania has
experienced real annual GDP growth rates of three per cent to seven
since the 1990s.
In 2012, Tanzania’s real annual GDP grew
by 6.4 per cent according to 2014 World Bank (WB) report. The report
says despite these positive developments, under-investment and weak
financial performance in Tanzania’s energy sector continue to be
significant barriers to continued economic growth.
Electricity demand in the country is
increasing rapidly mainly due to accelerated productive investments,
increasing population and access to the energy source. The government
has been encouraging investments to increase available generation,
further expand access, reform the distribution system and develop new
indigenous sources of energy.
Source; Daily News
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