Tanzania’s Ministry of Energy and Minerals has published on Monday an Electricity Supply Industry Reform Strategy and Roadmap for 2014 to 2025.The ministry said in a statement that the Roadmap sought to respond to private sector concerns with its key focal points being Tanzania Electric Supply Company (TANESCO) operational and financial transformation, strengthening of the governance and performance of the sector and attracting private investment.
It said the Roadmap had attracted headlines due to its reference that the proposed reform would involve investment of $11.4 billion ($1.9 billion per annum) of which 73.5 percent is allocated towards generation.
Further, the Roadmap acknowledges that such funds cannot be raised by government of Tanzania and development funds alone, and therefore that private sector involvement is required, particularly in respect of generation.
This reference has been accompanied by clear statements of recognition across the government of Tanzania energy sector that private sector involvement is required and that such involvement entails credible financial and institutional reform.
The Roadmap takes the long term view, focusing on an increase in installed power capacity to at least 10,000 MW by 2025, at which point the phased unbundling of TANESCO would be completed.