East African Business Week

DAR ES SALAAM, TANZANIA-The Tanzania Electric Supply Company (TANESCO) has signed $37million (£23million) contract with the Netherlands based firm, Aggreko plc, supply 100MW of emergency power for 12 months.
According to Aggreko plc the contract involves providing two 50 MW diesel-powered plants at Ubungo and Tegeta, as well as managing the fuel supply associated with the power generation.
 Mr. Rupert Soames, Chief Executive of Aggreko said that "the estimated value of the power contract is $37 million; the pass-through fuel contract is similar to that currently operated by Aggreko in Uganda and in previous years in Sri Lanka, and involves managing the fuel supply to the power plants.
 "The value of the fuel contract will depend on the monthly price of diesel, and the amount of power generated and Aggreko will charge a small fee for managing the fuel supply," said Mr. Soames.
 Mr. Soames said that "having successfully delivered 40MW of emergency power between 2006 and 2008, we are delighted that, following a competitive tender process, we have once again been selected to be of service to Tanzania ."
He also said that the award of this contract will take Aggreko's order intake in the first six months of 2011 to at least 630MW.
 Aggreko plc is said to be the world leader in the supply of temporary power and temperature control solutions. Recent Aggreko plc customers include the FIFA World Cup in 2010, the Vancouver 2010 Olympics and the power utilities in over 50 countries including the UK , France , Angola , Kenya , Indonesia , Bangladesh , Venezuela , Chile , Brazil and the USA .
More than two-thirds of Tanzania 's electricity is hydro-powered; the prolonged drought that besetting East Africa has resulted in a significant reduction in the amount of electricity being generated by hydro plants.  
The reduced supply of electricity, combined with the rapid growth of the Tanzanian economy and consequent increase in demand for power, means that power rationing has become a regular event.  
Badra Masoud, the Tanesco Communications Manager, said that the addition of 100MW of power would help stabilize the country's power supply and support continued economic growth while the Tanzania Electric Supply Company worked to implement long-term solutions to improve power generation and distribution.
She also said that the government is in a move to accomplish many power projects expected to mitigate power deficit that still twists the economy. Ms. Masoud said that the government is in a line for another 70MW power project expected to begin soon in Tanga region which will be added to the national grid.
"In a line to cub the power deficit in the country" she said, "the government of  Tanzania has set to receive a $700 million hydropower plant which will work to cover 25% power demands in the country when completed", she noted.
Ms Masoud said that the Russian based-Zarubezhstroy Corporation (ZARS) will embark on a five-year project on hydroelectric power plant at Rumakali in Iringa region, Tanzania and will initially generate 222 MW which will be fed directly into the national grid.
According to the report by Mr. Razmik Tarzerdyan ZARS, the Chairman of the Board of Directors, the plant which will be the largest independent hydropower project and is set to cater for the country's power demands by 20 to 25 %.
According to statistics from the Ministry of Energy and Mineral Resources, about 14% of the country's population is connected to the power grid. Analysts say that if Tanzania will go on depending on the hydropower, then Tanzania will never be out of electricity deficit. According to them hydropower is never reliable due to the climate fluctuation.
" Tanzania has to adopt new technology to power the country for further developments," they said. Tanzania 's interconnected grid system has an installed capacity of 773MW, of which 71% is hydropower.