Tanzania Minister sets July 31 deadline for Sh64 billion Hale hydropower rehab
Energy Minister Deogratias Ndejembi speaks on Tuesday, June 30, 2026, during an inspection of the Hale Hydropower Project in Tanga Region, which is expected to help ease electricity challenges in the Northern Zone. PHOTO | MBONEA HERMAN
Tanga. Energy Minister Deogratias Ndejembi has directed the contractor rehabilitating the Hale Hydropower Station in Tanga Region to complete works by July 31 and not seek any further extension.
He said timely completion will restore the plant’s 21MW capacity, strengthen the national grid, and ease rising electricity demand in northern regions.
Mr Ndejembi issued the directives during an inspection, noting that the station, commissioned after independence, once produced 21MW when national demand stood at about 36MW.
He said ageing equipment, now over 60 years old, had reduced output to 6MW.
“President Samia Suluhu Hassan’s government, with support from Sweden through Sida, funded the rehabilitation. Tanzania contributed 40 percent and Sweden 60 percent, bringing the total cost to about Sh64 billion,” he said.
Mr Ndejembi said the funds were being used to restore the plant to its original capacity through modern equipment.
However, he expressed concern over delays, noting the project was due for completion 10 months ago.
“The project is behind schedule. We have instructed the contractor to finish by July 31, which is the end of the contract. No further extension will be granted,” he said.
He said 98 percent of the equipment had already arrived and installation was ongoing, with the plant expected to return to full 21MW output once complete.
Tanga currently consumes about 130MW due to growing industrial demand, he added, saying the additional power would ease shortages.
The project also includes the installation of a large transformer and the replacement of transmission lines installed in 1964.
“These upgrades will strengthen the national grid. Electricity is essential for development in health, education, industry, and other sectors,” he said.
The Tanzania Electric Supply Company Limited (Tanesco) deputy managing director for distribution, Mr Timothy Mgaya, said the utility would supervise the contractor closely and take legal action if there is breach of contract.
The $24.81 million (about Sh64 billion) project is 83 percent complete, with completion still scheduled for July 31, 2026.
