Tanesco to go public, be split into three firms after $1.15b reforms
President Jakaya Kikwete and officials from the Ministry of Energy and Tanesco inspect the Ubungo Power Plant in Dar es Salaam. File
The government plans to invest $1.15 billion in the next 11 years to implement its turnaround strategy for the Tanzania Electricity Supply Company, which includes selling part of the utility to the public. At least $412 million of the amount will be used to pay Tanesco’s debts in the immediate term, while $635 million will be used to pay capacity charges for existing independent power producers (IPPs).
The strategy — one of the biggest energy reforms in recent years — will involve the private sector in raising the funds. Its full implementation will see at least 75 per cent of Tanzanians connected to electricity.
