electrification bids
The words Final Bid with a gavel to symbolize an auction winner and last bidder who wins an auctioned item

In East Africa, Tanzania’s minister of energy and minerals, Sospeter Muhongo affirms that from now onwards public utility Tanesco will do business by the books when awarding electrification bids.

According to local media, while speaking in parliament, Muhongo acknowledged that most of the power purchase and production contracts that the utility had engaged in previously with private firms were crooked.

He, however, assured that going forward the government would create a competitive environment for each project whose implementation required a contractor.

He said: “We’ve, in collaboration with the World Bank and the African Development Bank developed a strategy for ensuring contractors are procured on merit. No company will be assigned a project without a competitive bidding [process].”

Countrywide electrification bids

Muhongo continued stating that contracting in the energy sector would continue to be in line with the government’s resolve to involve other entities in its countrywide electrification bid.

The media also reported that the minister pointed out at some lopsided power purchase contracts that Tanesco entered a while back indicating how lawmakers were askew.

He stated that the public utility is paying capacity charges amounting to $4.6 million a month in a contract between it and Songas and that Symbion and Aggreko received capacity charges of $2.4 million and $2 million, respectively.

Muhongo disclosed that the ministry has since established a system for reviewing the performance of Tanesco officials on a quarterly basis to ensure the parastatal’s executives delivered.

“A Tanesco manager will, under this system, be assured of his post,” he said, explaining that the ministry had conducted last review towards the end of March, which resulted in some officials being released for underperforming.

“We’ll conduct another review next month and in September,” he added.