Managing Director (Tanzania Electric Supply Company Limited)

H.E Jakaya Kikwete has accomplished a lot for the country in the past ten years. Regarding the energy sector, what are the President’s main achievements and what legacy is he leaving behind?

During his ten years of Presidency, there are huge remarkable improvements in the energy sector in Tanzania. Starting with his main achievements: President Kikwete has added 47% of the total megawatts (MW) and not only that but also during his ten years in office, Tanzania has managed to jump one step ahead in terms of power supply in the country whereby previously only 10% of Tanzanians had access to electricity and now above 40% have access to electricity which is huge achievement. Again during his terms there have been many power projects operating in the country as result of huge investment made in energy sector, some are complete and others are still in progress. He has also managed to bring power-rationing trend to an end as result of huge investment made in gas pipeline construction from Mtwara-Dar es Salaam that is a game changer in sense that it is big pipeline with capacity to generate about 4,000 MW of power.

Could you tell us what are the impacts of LNG discoveries for Tanzania and the energy sector?

Liquefied Natural Gas (LNG) will have huge impact on the economy of Tanzania. Right now the discovery is above 56 trillion cubic fit which is huge achievement and more discoveries are on verge of occurring. In the next 5 -7 years LNG Plant will be established in the country which will make a remarkable record for Tanzania being the net exporter of gas for the first time in history considering the Tanzanian economy has been dependent to agriculture, tourism and mining in large extent but as soon as LNG plant is established in the country, it will serve as game changer to the economy of Tanzania. Again with establishment of LNG terminal in the country will surely guarantee the power generation and an interruptible power situation in the country and it will assure the stability of power price going forward to the consumers and businesses.

Could you tell us about Rural Energy Agency (REA)? What’s the main target and plan in attempt to electrify rural areas in the country? How many people are going to benefit from it?

REA is one of the President’s initiatives. Rural Energy Agency (REA) is an autonomous body under the Ministry of Energy and Minerals of the United Republic of Tanzania. Its main role is to promote and facilitate improved access to modern energy services in rural areas of Mainland Tanzania. REA became operational in October 2007. The key target was clearly identified by REA under collaboration with Tanesco in attempting to make sure that about 30% of people living in rural areas are having access to electricity by 2015 and now it has exceeded to above 40%, which is huge achievement of energy sector in Tanzania. Another target under REA was the transformation of rural livelihoods through provision of modern energy services and to promote and facilitate availability and access to modern energy services in rural Mainland Tanzania.

Tanesco has been established in 1964. Could you give us the history and background of the company?

Tanzania Electric Supply Company Limited (TANESCO) originally was a combination of two private companies namely DARESCO, which was primarily supplying power during the colonial era, and then TANESCO (Tanganyika Electric Supply Company) which was operating in Tanga region. Generally TANESCO is a Tanzanian parastatal organization established in 1964. The government of Tanzania wholly owns it. The Ministry of Energy and Minerals regulates the operations of TANESCO. Its business includes: electricity generation, electricity transmission, electricity distribution and sale of electricity to the Tanzanian mainland and bulk power supply to the island of Zanzibar. With years of inefficient loss making operations and unreliable supply of electricity the government liberalized private sector investment in electricity generation in 1992. In 2002 as part of the Companies Act, 2002 of Tanzania, Tanesco was incorporated as a limited liability company; however all its shares were still held by the government.

Could you tell us about Ubungo Power Plant and what other projects are in progress?

There are two power plants owned by TANESCO namely Ubungo One Power Plant, which was commissioned in 2008, and then Ubungo Two, which was commissioned in 2012 respectively. Other power plants owned by the government include Kinyerezi power plant and all these power plants are operating using natural gas. However there are other power plants owned by private companies namely Songas, Symbion, IPTL and Aggreko which is the Emergency Power Plant and it generates about 70 megawatts.

Regarding recent Oil and Gas discoveries, what’s the vision and strategy for TANESCO?

TANESCO as a company aims at improving the financial situation by increasing the sales and get connected to many customers. Again TANESCO focuses on putting more efforts on rural electrification to make sure that people from both urban and rural areas become connected to the national grid. Not only that but also TANESCO focuses on changing and improving metering technology from credit meters to prepaid meters that will give assurance on proper collection of whatever sold. TANESCO is aiming to move into new technology especially in terms of metering, generation and communication, in ensuring proper services to the customers, TANESCO has installed fiber optic cable throughout the company which can also be used to generate revenue for company considering TANESCO is covering huge area of the country.

What would you like international investors to think about TANESCO?

TANESCO is related to the international investors in two ways: -There are investors who want to invest in the energy sector and TANESCO is partnering with them, regarding the great demand of power generation in the country and secondly there are investors who are investing on other sectors and they want to have assurance whether TANESCO have enough power to give them. TANESCO gives assurance to the investors who want to invest in the country.

As the Managing Director of TANESCO, what’s your ambition for this company?

My ambition is to have TANESCO, which is very profitable and efficient in sense that it offers suitable and proper services to the customers. Lastly I am imagining Tanzania without power blackout in the next years whereby TANESCO as the company is targeting to ensure people from urban and rural areas are getting connected to the national grid. Regarding recent Oil and Gas discoveries, which are termed as game changers, TANESCO as the company gives assurance of power supply to the customers in the country and in neighboring countries as well.

You have been serving in the country for a considerable amount of time. What are you most proud of?

During my term, TANESCO has managed to come from a loss making company to a profit making company, which is a huge achievement. Again there is huge investment made in the energy sector, which ensures proper generation of power in the country despite the number of challenges that TANESCO faces on a regular basis.

Could you tell us in which context has The Oil and Gas Yeat selected you as the person of the year in the energy sector here in Tanzania?

Oil and gas elected me as person of the year in Tanzania for 2014 after seeing the performance made by the company (TANESCO) in various places especially on power plant and on other projects being done in relation to the power generation by natural gas: - Kinyerezi and Ubungo power plants respectively are the good examples of projects which aim at upgrading oil and gas business in Tanzania. Other thing is relating to full participation of TANESCO in terms of supporting other economic sectors in the country regarding utilization of oil and gas.