13 August 2009 – Private companies in Tanzania will soon be able to provide electricity by the end of the year, halting a four decade- long monopoly held by the Tanzania Electric Supply Company Ltd.
Tanzania will publish an Electricity Act, which enables other providers to generate power, in the government gazette by year-end, according to Deputy Energy Minister Adam Malima.
“The private sector is more than welcome to invest by doing it alone or by partnering with the public sector,” Energy Minister William Ngeleja said at a convention in Dar es Salaam.
Tanzania suffers from recurring power shortages due to insufficient investment in its electricity-generating capacity. The government approved a 300 billion-shilling loan for the state-owned power utility, known as Tanesco, to help it upgrade its infrastructure, Ngeleja said. The funds form part of a 1.95 trillion-shilling recovery plan announced in June, with the World Bank and Millennium Challenge Corp. contributing to the project.
Ngeleja said the government “was aware” of barriers which deter private capital from the industry and that it was changing its power-industry reform plan, first released in 1999, to make it more conducive to investment, he said.