Tanzania Electric Supply Company (Tanesco) has selected US-based financial and technical advisory firm, K&M Advisors, to assist on the new 250MW Combined Cycle Gas Turbine (CCGT) power plant at Somanga Fungu, Lindi region.
According to local media Daily News, the advisory firm has been tasked with the responsibility of advising on the contract that Tanesco is to engage in with a potential investor.
K&M Advisors - scope of work
The technical advisory firm said in a statement that they are expecting to finish the assignment within approximately 18 months.
Under the assignment, the company is tasked with site selection, set technical and functional specifications, develop the financial model, prepare prequalification documents and the request for proposals.
In addition to the scope of work, K&M Advisors would also draft all project contracts, manage the prequalification and subsequent bidding process.
Furthermore, the firm will evaluate proposals, and advise Tanesco during negotiations with the preferred bidder under the Public Private Partnership (PPP).
Transparency of energy market
The appointment of K&M Advisors follows after last week's public announcement by energy and minerals minister Professor Sospeter Muhongo asserting that the ministry seeks to do away with dubious contracts.
It is reported that for a while Tanesco has been involved in underhanded business when awarding contracts for projects.
Muhongo said as of 30 August 2016, the ministry intends to introduce a system of welcoming interested companies to invest the country’s energy generation.
Local law firm joins forces
According to the Daily News, a local private law firm, Aloys & Associates, has partnered with the K&M team to provide local legal and regulatory support throughout the transaction.
Aloys & Associates managing partner, Aloys Bahebe, stated that the project at Somanga Fungu is expected to cost $400 million and the focus is to give comfort to potential investor to come and invest.
Bahebe said: “We are doing it for the interest of the government and Tanesco. We have got a competent team to do this job.”
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