Bloomberg News

Jacobsen of Norway Starts 100-Megawatt Plant Build in Tanzania

June 01, 2011

June 1 (Bloomberg) -- Jacobsen Elektro AS, a Norwegian power-plant builder, started constructing a 100-megawatt gas- fired facility in Tanzania’s commercial capital, Dar es Salaam, according to the East African nation’s power utility.

The plant is part of government’s measures to increase electricity generation by at least 650 megawatts in the next two to three years, Tanzania Electric Supply Co. Communications Manager Badra Masoud said by phone from the city today.

“Construction of a 60-megawatt plant that will use heavy fuel oil to generate electricity in Mwanza has also started,” Masoud said, without naming the company building that plant. The two projects are funded by Tanzania and Norway through a loan, she said.

Economic growth in Tanzania, East Africa’s second-biggest economy, will probably slow to 6 percent this year from 7 percent in 2010 due to power shortages, the International Monetary Fund said on March 18. A prolonged drought has cut electricity from hydropower plants resulting in a deficit of 264 megawatts, Energy and Minerals Minister William Ngeleja said on Feb. 16.

A Chinese company has been selected to construct a 300- megawatt power plant at Mtwara, Masoud said, declining to name the company. Tanesco, as the utility is known, is in the tender process for the construction of a 150-megawatt facility in Dar es Salaam, she said. Both plants will be gas-fired.

In January 2007, Paris-based Etablissements Maurel et Prom SA found a flow of 19.2 million cubic feet per day of natural gas in Mkuranga, according to information on its website.

Government will also rent heavy fuel oil generators with installed electricity production capacity of 70 megawatts in Tanga, Masoud said. “Government has identified someone willing to sell the electricity to us in Tanga,” she said without naming the owner of the generators.

--Editors: Ana Monteiro, Karl Maier

To contact the reporter on this story: David Malingha Doya in Dar es Salaam via Johannesburg at asguazzin@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net undefinedundefined -0- Jun/01/2011 10:29 GMT


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