Tanzania Government seeks new contractor for Kinyerezi power project

Dar es Salaam. The government has dismissed claims it may end up using taxpayers’ money to compensate a Norwegian firm, Jacobsen Elektro AS, that abandoned the construction the 185MW Kinyerezi I gas power plant.

The firm abandoned the project last year on grounds it had gone bankrupt.

The government has since started engaging a new contractor to complete the remaining part of the project.

Speaking to members of a parliamentary committee on energy and minerals who toured the project in Dar es Salaam on Monday, Energy Minister Medard Kalemani said the government has done everything to ensure national interests are protected in the deal.

“The contractor completed about 85 percent of the work and he was paid 68 percent of the total amount. There is no loss so far on the side of the government,” he said.

He said his ministry was working with the office of the Attorney General to ensure that the remaining 15 percent of the job is completed before December this year.

“I have spoken to experts from all departments that are involved in the construction of this project and informed them that we need to have a new contractor at the site within 30 days to complete the project before December,” he said.

He was confident the government will secure a contractor whose costs will work within the amount budgeted for the project.

Chairman of the parliamentary committee, Mr Dunstan Kitandula, said their team decided to tour the project after learning the contractor had abandoned the site.

He said they wanted to get first hand information on what the government was doing to cushion the country from possible legal suits in contractual disputes emanating from the project.

He said the committee was happy with steps that the government had taken to bring the project back.

“As parliamentary committee, we have happy with the steps taken so far and on behalf of the committee, allow me to extend my gratitude to the government,” he said.

The eight month delay of the project, which was set to be completed in December last year, became apparent Jacobsen Elektro when said that only two of the four turbines were on site.

The Kinyerezi I Extension Project costs Tanzanian taxpayers a staggering $188 million (about Sh435 billion)