Government has assured that the incensement of power price

The Government has assured that the incensement of power price is unavoidable issue due to the production cost.

Speaking during the Power sector Planning, Procurement and Contracting held in Dar es Salaam yesterday the Deputy Minister of Energy and Mineral Adam Malima said the price must rise because without it the sector will fail to expand.

“The power price to remain at zero incensement is not possible because the government will loose the capability of compensated the subsides and the Private sector will fail to get in as we create difficult environment for them, so the price must increase due to price inflation.” said Malima

He said that the expansion of power sector depend on the power price incensement, also the other sector will not expand without the expansion of power sector.

“What the power stakeholders supposed to do is to reach the conclusion of at what percentage the power supposed to raise up for example supposed to raise for 80 or 70 and not to demand the zero incensement which was not possible.” added Malima

He said that what they have decided was to raise the power price to the big companies and hotel only, and the small community will not be affected by the price considering with the milling machine.

We should create friendly environment for the private sector to invest into power sector because the increase of power price will lead to investment of many private sector and will reduce the power crisis problem because the power generating cost was the main obstacle for them.

Malima said they aim to remove the beuracrasy system in the sector, and being transparency.

“Transparency is important because create an even playing field for every one which likelihood the chance that the best option will win.”

“I would be the first to admit that the Tanzania Electronics Sector is not perfect but I assure that the Ministry is dedicated to finding ways to improve outcomes” Malima commented

Speaking during the event the Energy and Water Regulatory Authority Director Genera Haruna Masebu said the aim of work shop was to discuss ways to improve power sectors Planning, Procurement and Contracting in Tanzania.

“Approving and the initiating of the first procurement and reviewing power purchase agreement are less well understood, at this stage EWURA aim to have draft guideline complete by early 2012..” said Haruna

Haruna said currently there is contradiction of Procurement, planning and Contract management as we aim to get6 the clarification.

He said that the clarification will enable to bring openness to the power stakeholders when they want one of three services as they will no whom one to meet first.

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