26 June 2009 – Tanzania Electric Supply Co. Ltd (Tanesco) will spend 1.95 trillion shillings ($1.48 billion) in the next five years to boost power supply.

For this programme, 289.6 billion shillings will be contributed by the Tanzanian government, 280 billion shillings by the Millennium Challenge Corp. and 243.4 billion shillings by the World Bank, while 652 billion shillings will be spend by the utility itself.  The balance will be made up by smaller contributors.

Tanzania has been plagued by power cuts and shortages over the past five years. The most serious cuts were in 2006, when a drought curbed hydropower generation, resulting in widespread blackouts.

The five-year plan aims to boost the capital of Tanesco, which hasn’t made a profit since its inception in 1964, improve power quality and reliability and develop its human resources.. The company will reduce its dependency on hydropower by giving priority to gas and coal-fired generators, Tanesco added.

According to Tanesco, the increase of capacity in generation will aim at a balanced mix of hydro and thermal generation.  No hydro project will be implemented in this planning period.