Dar es Salaam, Tanzania — ESI-AFRICA.COM — 19 October 2011 – Tanzania Electric Supply Company (Tanesco) has insisted that it would not be able to afford to pay the US$65 million in compensation it has been ordered to pay a private power generating company in the country.

In court papers filed to appeal against a High Court judgement Tanesco argues that its operations could be severely affected by the huge payment owed to Dowans Tanzania Limited and Dowans Costa Rica.

The Citizen newspaper has learnt that Tanesco filed an application seeking to temporarily suspend enforcement of the award of the International Chamber of Commerce (ICC), pending determination of an appeal to challenge the High Court judgement.

“If execution is allowed, the applicant’s ability to generate, transmit and distribute the much needed electricity will be adversely affected, causing a severe power crisis and damage the Tanzanian economy,” the public power utility argues.

The company further argues that it stands to suffer irreparable loss because the amount involved in the case was colossal, and if collected is likely to paralyse its daily operations.

Tanesco argues that its intended appeal against the ICC stands a good chance to succeed. It raises serious points of law, which need to be determined by the Court of Appeal before the execution need can be allowed.