A Sh63 billion contract to improve power supply reliability in the country was signed yesterday in Dar es Salaam. The Millennium Challenge Account Tanzania (MCA-T) signed the contract with Symbion Power LLC, and American firm, and Areva, a French firm, for the supply of sub-stations that will improve electricity supply in the country.
The two firms will design, manufacture and install 24 power substations in six Tanzania Mainland and Zanzibar regions. The money engaged in the Sh63 billion ($45 million) contract is part of the $206 million energy project under the Millennium Challenge Compact (MCC).
'The infrastructure projects you are implementing will contribute to the health, prosperity and safety of Tanzanians,' the US ambassador, Mr Alfonso Lenhardt, said during the signing ceremony held in Dar es Salaam.
The envoy said MCC would continue enhancing excellent partnership, promoting good governance and preventing corruption in collaboration with Tanzania to ensure the project succeeds and paves the way for investments. He said the project was significant for accelerating Tanzania’s economic growth and improving the living standard of the citizens, promising to encourage interested US firms to invest in the country.
Mr Lenhardt said energy, education, water and transport sectors would produce medical doctors, engineers and other professionals if enhanced. He was optimistic that the construction multinationals would work hard to ensure the project is timely accomplished.
According to MCA-T chief executive officer, Mr Bernard Mchomvu, the joint venture firms won the tender through competitive bidding procedures that comprised six companies from Europe, America, Asia and South Africa.
The CEO urged them to deliver to the expectations of both the financiers and the beneficiaries. 'We are very confident that you will timely deliver high quality work as per the allocated budget. Do the job so that you can be proud of it,' he noted.
He also thanked the Americans and the MCC in particular for extending their valuable financial assistance and technical support to Tanzania.
The project would improve the performance in the energy sector for the wellbeing of the beneficiaries and a sustainable economic development of the country at large, he said.
Mr Paul Hinks, chief executive officer with Symbion Power, said shortly after signing the contract that Areva would design and supply substation equipment to 26 sites in Tanzania. Despite stiff competition experienced before winning the contract, he would encourage US companies to bid for infrastructural development tenders available across African.
Other energy contracts include the laying down of a second submarine power cable linking Tanzanian Mainland and Zanzibar. Approximately 40-km long (132kV) and 100MW cable would be laid down between Ras Kiromoni and Ras Fumba by VISCAS Corporation.
The Japanese firm, which signed the contract in April this year, has commenced the designing work prior to the fabrication of the cable. Another component is network rehabilitation and extension in six regions. The work involves construction of 78 networks of 252km and 1,247km for 11kV and 33kV, respectively.
The package will supply power to villages and urban areas in Mwanza, Iringa, Dodoma, Mbeya, Morogoro and Tanga regions.