Govt in­creases ru­ral power bud­get by 50 pc

The African - - NEWS -

IN the strug­gles to en­sure Tan­za­ni­ans are supplied with re­li­able elec­tric­ity the Min­istry of En­ergy and Min­er­als in the com­ing fi­nan­cial year has in­creased the bud­get for ru­ral elec­tri­fi­ca­tion by 50 per cent, from 357bn/- in the 2015/2016 fis­cal year to 534bn/Tabling 2016/17 bud­get es­ti­mates in Par­lia­ment in Dodoma last week the min­is­ter, Prof Sospeter Muhongo, said all projects un­der the Ru­ral En­ergy Agency (REA) will be im­ple­mented as pre­vi­ously planned.

Prof Muhongo said the power ac­cess level has also gone up by four per cent hence about 40 per cent of Tan­za­ni­ans are now con­nected to power com­pared to 36 per cent last year.

All in all 94 per cent of the to­tal bud­get of the min­istry for the next fi­nan­cial year has been al­lo­cated for de­vel­op­ment projects, he said out of the min­istry’s to­tal 2016/2017 fis­cal year bud­get of 1.12 tril­lion/-.

He said 1.05tri/- will be chan­nelled to fund de­vel­op­ment projects while the re­main­ing 66.2bn/- will cater for re­cur­rent ex­pen­di­ture.

He added: “Bas­ing on sec­tion 43 (a) of 2015/2020 CCM elec­tion man­i­festo, which di­rects the govern­ment to in­crease power pro­duc­tion, the min­istry has al­lo­cated 98 per cent of the de­vel­op­ment project funds for the en­ergy sec­tor.”

“REA is now in the process of get­ting a con­trac­tor who will sup­ply power to 121 vil­lages where the Iringa-Shinyanga Grid passes through,” he said.

Prof Muhongo ex­plained that the govern­ment is go­ing on with the im­ple­men­ta­tion of elec­tric­ity sup­ply in­dus­try re­form strat­egy and roadmap in a move aimed at trans­form­ing en­ergy sec­tor.

He as­sured the House that by 2019/2020, there were some power projects that are due for com­ple­tion and which will greatly help in­crease power ac­ces­si­bil­ity in the coun­try. The projects are Singida-ArushaNa­manga (400kV), Bulyan­hu­luGeita (220kV), Geita-Nyakanazi (220kV), North-East Grid (400kV) and So­manga-Kiny­erezi (400Kv).

The min­is­ter also said com­ple­tion of the 542km Mt­waraDar es Salaam gas pipe­line project has, among other things, helped rein in the cost of elec­tric­ity gen­er­a­tion. The govern­ment has also ear­marked some 800m/- for set­ting up the Liq­ue­fied Nat­u­ral Gas (LNG) plant in the com­ing fi­nan­cial year.

He said the min­istry was in the fi­nal stages of putting in place a Petroleum Up­stream Reg­u­la­tory Author­ity (PURA) to con­trol all is­sues re­lated to petroleum prod­ucts. PURA, ac­cord­ing to the min­is­ter, is set to be a full reg­u­la­tory body by July.

Prof Muhongo also af­firmed that the govern­ment has com­pleted es­tab­lish­ment of Petroleum Bulk Pro­cure­ment Agency (PBPA) since Jan­uary.

The agency, among other as­sign­ments, is tasked with han­dling all ac­tiv­i­ties that were be­ing done by the Petroleum Im­por­ta­tion Co­or­di­na­tor Lim­ited (PICL). PICL’s key role was to man­age petroleum bulk pro­cure­ment sys­tem.

Newspapers in English

Newspapers from Tanzania

© PressReader. All rights reserved.