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Tanzania: Power Generation Plants Tender Cancels
Publish Date : 08-Jan-2010
The Minister for Energy and Minerals, confirmed the government had revoked the tender for the purchase of two generators to be located in Dar es Salaam and Mwanza. The Minister for Energy and Minerals said an evaluation conducted early last year by the Tanzania Electric Supply Company Limited (Tanesco) showed that the national grid required an additional minimum 160MW.
The Minister for Energy and Minerals said the $120 million 100 MW plant in Dar es Salaam would run on locally produced natural gas while the $80 million 60MW plant in Mwanza would use heavy fuel oil — because transmission of electricity over a long distance reduced the quality of power.
Of the 30 companies that bid for the Dar es Salaam project, only five returned their documents; and out of the 28 that bid for the Mwanza project, only four returned their documents. The government said that after Tanesco scrutinised the tenders and handed them to the ministry, they were asked to submit other details including the lifecycle cost analysis for the project, which is estimated at 30 years for such plants. It is said that the Ministry of Energy and Minerals discovered Tanesco’s evaluation in relation to the Mwanza project never took into consideration the running costs.
