PM urges solution to power project hurdles

Dar es Salaam. Prime Minister Kassim Majaliwa has directed permanent secretaries at the ministries of Energy and Minerals, Finance and Planning and Works, Transport and Communications to meet and resolve challenges facing the implementation of the Kinyerezi II power project.

Mr Majaliwa made the statement yesterday in the city after he paid a visit to the project, which upon completion will dispatch 240MW to the national grid.

He was responding to a speech by Kinyerezi II project manager Stephen Manda, who had asked for relief from the extra charges that the Tanzania Electricity Supply Company (Tanesco) incurs while undertaking the project.

The extra charges are incurred through Value Added Tax (VAT) for imported machines, customs fees, railway development levies and charges by the Tanzania National Roads Agency (Tanroads) for abnormal loads trucks transporting heavy machines carry. These extra charges, he said, were not in the construction budget.

According to Mr Manda, the power utility has outstanding VAT charges amounting to $13.4 million. So far, they have managed to pay only $1.9 million. Other outstanding arrears are the railway development levy ($5.3 million) and transportation ($4.6 million).

The Prime Minister said permanent secretaries at the three ministries should discuss ways to ease construction pressure.

“Kinyerezi power plants are one of the strategic projects that the government is eyeing because of their huge potential for national development, therefore, we have to do everything possible to remove all barriers,” he said.

Mr Majaliwa also underscored government’s commitment to improving power supply in the country, saying the move was in line with implementation of the industrialisation policy. He also encouraged local and foreign companies to increase investment in the country.