$400m from China for Tanzanian coal project

17 August 2009

Tanzanian energy supplies look set to be boosted via a coal power project funded by $400 million on loan from China.

Kiwira has at least 35.14 million tonnes of coal deposits and in two years' time will generate 200 MW, said energy and minerals minister William Ngeleja at an energy conference Dar es Salaam.

The government has taken control of the coal facility from private investors.

Earlier this week, deputy energy minister of Tanzania Adam Malima announced that private companies will be allowed to supply electricity to the country by the end of 2009.

"The private sector is more than welcome to invest by doing it alone or by partnering with the public sector," Mr Ngejela was quoted as saying.

The electricity act is due to enable other companies and organisations to generate power that could help prevent recurring shortages that Tanzanians often experience.

According to This Day, a national newspaper, the new rules will end a "monopoly" that has existed in the sector for the past 40 years.

Category: Energy