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HABARI

HabariZA
za
NISHATI
nishati&MADINI
&madini

NewsBulletin
http://www.mem.go.tz

Toleo
No.144
51
Toleo No.

Limesambazwa
kwa Taasisi
naTaasisi
Idarana
zote
MEM
2015 4 - 10, 2016
Limesambazwa
kwa
Idara
zote MEM Tarehe - 23-29 Januari ,Novemba

Wabunge

WAZIRI WA NISHATI NA MADINI AZINDUA RASMI BODI YA TANESCO -Uk2

TGDC, BGR KUANZA TAFITI


ZA JOTOARDHI MERU

Waimwagia sifa MEM, TANESCO, REA

Somahabari Uk.2

Wataalam wa Nishati ya Jotoardhi kutoka Kampuni ya Uendelezaji wa Jotoardhi Tanzania (TGDC) na Taasisis ya Federal Institute for Geosciences and
Natural Resources (BGR) ya Ujerumani wakiwa katika eneo la mradi wa Jotoardhi Meru, mkoani Arusha kwa ajili ya maandalizi ya tafiti za kina za
mradi huo.

Waziri wa Nishati
na Madini, Profesa
Sospeter Muhongo

Naibu Waziri wa Nishati na


Madini, anayeshughulikia
Madini Stephen Masele

Naibu Waziri wa Nishati na


Madini anayeshughulikia
Nishati, Charles Kitwanga

Mkurugenzi Mtendaji wa TANESCO,


Mhandisi Felchesmi
Mramba

Mkurugenzi Mkuu wa
REA, Dk. Lutengano
Mwakahesya

Wizara, Wafanyabiashara wa Mafuta wakutana


JWTZ wapongezwa kunusuru mtambo wa Msimbati-Uk4

>>>
UK. 4

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Novemba 4 - 10, 2016

TGDC, BGR KUANZA TAFITI


ZA JOTOARDHI MERU

Wataalam wa Nishati ya Jotoardhi kutoka Kampuni


ya Uendelezaji wa Jotoardhi Tanzania (TGDC)
na Wataalam wa Taasisi ya Federal Institute for
Geosciences and Natural Resources (BGR) ya
Ujerumani wakati wa warsha ya kupanga utekelezaji
wa tafiti za mradi wa Jotoardhi Meru, warsha hiyo
ilifanyika katika ukumbi wa mikutano wa TANAPA
mkoani Arusha hivi karibuni.

Na Johary Kachwamba
TGDC

ataalam wa
Kampuni ya
Uendelezaji
wa Jotoardhi
Tanzania
(TGDC) kwa kushirikiana
na Wataalam kutoka Taasisi
ya Jiolojia ya Federal Institute
for Geosciences and Natural
Resources ya Ujerumani hivi
karibuni walitembelea eneo
la mradi wa Jotoardhi Meru,
mkoani Arusha.
Wataalam hao walitembelea
mradi huo kwa lengo la kufanya
tathmini ya awali kuangalia
eneo la mradi na jinsi tafiti za
kina zitakavyofanyika ili kubaini
kiasi cha nishati ya jotoardhi
na kuainisha mashimo ya
kuchoronga kwa ajili ya kuvuna
mvuke wa kuzalisha umeme na
matumizi mengine ya moja kwa
moja.
Vilevile, Wataalam hao
walifanya Warsha ya kimkakati
kabla ya kuanza rasmi tafiti
hizo, zinazotarajiwa kuanza
mwezi Januari 2017, ambayo pia
iliwashirikisha Wataalam kutoka
Wizara ya Nishati na Madini,
Shirika la Hifadhi za Taifa
(TANAPA) na Hifadhi ya Taifa ya
Arusha (ANAPA).
Mratibu wa Mradi wa Meru

kutoka Wizara ya Nishati na


Madini, Ngereja Mgejwa alisema
ushiriki wa Wataalam wa uhifadhi
kutoka TANAPA na ANAPA ni
muhimu katika kupanga mkakati
wa utekelezaji, kwa kuwa tafiti za
Jotoardhi Meru zitahusisha pia
baadhi ya maeneo yaliyo ndani ya
Hifadhi ya Taifa ya Arusha.
Naye, Mwakilishi wa BGR
Barani Afrika, Anja VOLK
alisema, ameridhishwa na
ushirikiano uliopo baina ya
TGDC, BGR na Taasisi za
uhifadhi na kueleza kuwa, tafiti
za kina zitahitaji ushirikiano wa
wadau wote, ikiwa ni pamoja
na jamii zinazozunguka mradi ili
waweze kujua manufaa ya mradi
kwao na taifa.
Tafiti za Mradi wa Meru
zinasimamiwa na Kampuni ya
Serikali ya Uendelezaji Jotoardhi
(TGDC) kwa kushirikiana na
Shirika la Serikali ya Ujerumani
(BGR).

Wataalam wa Nishati ya Jotoardhi kutoka Kampuni ya Uendelezaji wa


Jotoardhi Tanzania (TGDC) na Wataalam wa Federal Institute for Geosciences
and Natural Resources (BGR) ya Ujerumani wakati wa warsha ya kupanga
utekelezaji wa tafiti za mradi wa jotoardhi Meru, warsha hiyo ilifanyika katika
ukumbi wa mikutano wa TANAPA mkoani Arusha hivi karibuni.

Wataalam wa Nishati ya Jotoardhi


kutoka Kampuni ya Uendelezaji
wa Jotoardhi Tanzania (TGDC) na
wataalam wa Taasisi ya Federal
Institute for Geosciences and
Natural Resources (BGR) ya
Ujerumani katika picha ya pamoja
baada ya kukamilika kwa warsha
ya Mkakati wa tafiti za Jotoardhi
kwa mradi wa Meru Arusha.

NewsBulletin

Habari za nishati/madini

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Novemba 4 - 10, 2016

KIKAO UTAFUTAJI MAFUTA

TAHARIRI
Hongera Tanzania, Uganda
Kujadili uendelezaji Mradi
Bomba la Mafuta
Kwa mara nyingine wiki iliyopita tulishuhudia Serikali za
Tanzania na Uganda zikikutana Jijini Tanga katika mwendelezo
wa vikao vya majadiliano kuhusu utekelezaji wa Mradi wa
Bomba la kusafirisha Mafuta Ghafi la Afrika Mashariki, (East
African Crude Oil Pipeline -EACOP) kutoka Hoima nchini
Uganda hadi Bandari ya Tanga.
Mbali na Serikali hizo, vikao hivyo pia vilishirikisha Kampuni
ambazo zitatekeleza mradi huo za Tullow Oil ya Uingereza,
TOTAL E&P ya Ufaransa, China National Offshore Oil
Company (CNOOC) na kampuni za mafuta zinazomilikiwa na
nchi za Tanzania (TPDC) na Uganda (UOC).
Vikao vya majadiliano vilifanyika tarehe 24-26 Oktoba,
2016, vikishirikisha makundi matatu yaani Wataalam kutoka
pande zote, Makatibu Wakuu na baadaye kufutiwa na kikao cha
Mawaziri wa sekta husika ambapo taarifa ya utekelezaji wa mradi
huo ilipokelewa na nchi husika na kujadiliwa.
Kujadiliwa kwa masuala yanayogusa utekelezaji wa mradi
huo yakiwemo Miundombinu ya Barabara, Ardhi na Bandari
ilikuwa ni muhimu kwa kuwa hivyo vilikuwa ni baadhi ya
vigezo vilivyofanya Bomba hilo la Mafuta kupita katika ardhi ya
Tanzania .
Aidha, ushiriki wa kampuni zote 3 (tatu) zitakazotekeleza
mradi huo, ni ishara tosha kuwa ziko bega kwa bega na Serikali
za nchi hizo mbili kuhakikisha kwamba utekelezaji wa mradi
ambao unatarajiwa kukamilika ifikapo mwaka 2020 unafanikiwa.
Mbali na kufanyika vikao hivyo, washiriki walipata nafasi ya
kutembelea eneo la Chongoleani ambako inatarajiwa kujengwa
gati itakayotumika kupakia mafuta kwenye Meli baada ya
kusafirishwa na Bomba kutoka nchini Uganda, sambamba
na kutembelea katika gati na Bohari ya kampuni ya kuhifadhi
mafuta ya GBP, ambayo imeonesha nia ya kununua hisa katika
kampuni ya usimamizi wa bomba itakayoanzishwa kwa ajili ya
kusimamia mradi husika.
Katika ziara yake ya kutembelea eneo la Chongoleani ambapo
itajengwa gati ya kupakulia mafuta ghafi, Waziri wa Nishati
na Maendeleo ya Madini wa Uganda Mhandisi Irene Muloni,
alionesha kufurahishwa kwake kwa namna wananchi wa eneo
husika walivyoonesha utayari wa kupokea mradi husika, ikiwemo
namna Watanzania kutoka sekta binafsi wanavyojiandaa
kushiriki katika mradi huo.
Mbali na utayari wa wananchi, vilevile, Waziri wa Uganda,
alielezea uzuri wa eneo la Chongoleani na kuipongeza Serikali ya
Tanzania kwa namna inavyojiandaa kutekeleza mradi husika.
Kutokana na manufaa yatakayopatikana katika mradi husika
yakiwemo ya kiuchumi, ajira za muda mrefu na mfupi, bomba
la mafuta kutumiwa na nchi nyingine ikiwemo ya Jamhuri ya
Kidemokrasia ya Kongo, nchi yetu itanufaika hususan kiuchumi.
Hivyo, kama ambavyo wananchi wa Chongoleani
walivyojenga taswira nzuri ya kuupokea mradi huo, Watanzania
wote hawana budi kuendelea kushirikiana na kuunga mkono
jitihada za Serikali ambazo tayari zimefikiwa ili hatimaye
kuwezesha utekelezaji wa mradi wa EACOP unakamilika kama
ulivyopangwa.
Aidha, ushirikiano huu uende sambamba na ushiriki mzuri
wa wananchi katika maeneo ambayo mradi huu utapita ikiwemo
wakazi wa Tanga kwa kutumia vema fursa zitakazotokana na
mradi huo ikiwemo kutoa ushirikiano kwa Serikali wakati wa
utekelezaji wa majukumu mbalimbali ya mradi ambao manufaa
yake yanatarajiwa kulinufaisha Taifa zima kiuchumi.

Waziri wa Nishati na Madini, Profesa Sospeter Muhongo (mbele katikati) pamoja


na Naibu Katibu Mkuu anayeshughulikia Madini, Profesa James Mdoe (kushoto
kwa Waziri) katika Mkutano na kampuni ya Statoil. Kulia kwa Waziri ni Meneja
Biashara wa kampuni ya Statoil, Oivind Holm,Viongozi Waandamizi kutoka Shirika
la Maendeleo ya Petroli Tanzania (TPDC) na Viongozi Waandamizi kutoka Wizara
ya Nishati na Madini wakijadili jambo kabla ya kusaini Leseni ya kitalu Namba 2
ya utafiti wa mafuta.

Waziri wa Nishati na Madini, Profesa Sospeter Muhongo akisaini Leseni ya Kitalu


Namba 2 ya Utafiti wa Mafuta ya Kampuni ya Statoil. Anayeshuhudia ni Afisa
Sheria wa Wizara ya Nishati na Madini,Tulimbumi Abel.

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Novemba 4 - 10, 2016

WIZARA, WAFANYABIASHARA
WA MAFUTA WAKUTANA
Na. Nuru Mwasampeta

aziri wa Nishati
na Madini Prof.
Sospeter Muhongo
amekutana na
Wafanyabiashara
wa Mafuta kwa ajili ya kujadili
masuala mbalimbali katika biashara
hiyo.
Mkutano huo ulifanyika hivi
karibuni jijini Dar es Salaam ikiwa ni
utaratibu wa Waziri Muhongo wa
kukutana na wafanyabiashara hao
kila baada ya miezi mitatu ili kujadili

masuala mbalimbali ya kiutendaji


pamoja na kubaini mafanikio na
changamoto wanazokutana nazo
katika biashara hiyo.
Awali kabla ya kuanza kwa
majadiliano, Profesa Muhongo
aliwaasa wafanyabiashara hao kuwa
wakweli na wawazi katika majadiliano
husika ili kubaini changamoto
zinazowakabili ikiwemo na namna ya
utatuzi wake.
Pamoja na hayo wafanyabiashara
waliwasilisha hoja yao juu ya taratibu
zinazotumika katika ulipaji wa kodi ya
mafuta inayolipwa pindi mafuta hayo

yanapofika Bandarini.
Walieleza kuwa kodi hiyo si
halali kutokana na kwamba kiasi
kinachofika bandarini ni tofauti na
kile wanachokipokea katika ghala
zao kutokana na upotevu wa mafuta
hayo pindi yawapo safarini na kutaka
utaratibu ubadilishwe ili walipe kiasi
halali kinachopokelewa katika ghala
zao.
Kutokana na hoja hiyo Profesa
Muhongo aliziagiza Mamlaka husika
ikiwemo PBPA, Mamlaka ya Mapato
Tanzania (TRA) na Mamlaka ya
Udhibiti wa Huduma za Nishati na

Maji (EWURA) kukutana pamoja


na wafanyabiashara hao ili kufikia
muafaka wa jambo hilo.
Profesa Muhongo aliwataka
wafanyabiashara hao kufanya biashara
zao kwa kushirikiana baina ya
wafanyabiashara wakubwa, wakati na
wadogo ili wote kwa pamoja wapate
faida itokanayo na biashara hiyo.
Mbali na Profesa Muhongo, kikao
hicho pia kilihudhuriwa na Katibu
Mkuu na Naibu Katibu Mkuu wa
Wizara ya Nishati na Madini pamoja
na Watendaji wa Wizara na Taasisi.

Watendaji wa
Wizara ya Nishati na
Madini pamoja na
Wafanyabiashara wa
Mafuta wakiwa katika
kikao cha Waziri wa
Nishati na Madini
Profesa Sospeter
Muhongo.

Mjumbe kutoka Wakala wa Uagizaji Mafuta kwa Pamoja (PBPA),


Kedron Mbwilo akimsikiliza Waziri wa Nishati na Madini Profesa
Sospeter Muhongo (kulia) katika kikao baina ya Wadau na
Wafanyabiashara wa Mafuta kilichofanyika hivi karibuni wizarani.

Waziri wa Nishati na Madini Prof. Sospeter Muhongo (kulia)


akimkaribisha mmoja wa wafanyabiashara (aliyesimama kushoto)
kujitambulisha kabla ya kuanza kwa mkutano. Katikati ni Katibu
Mkuu wa Wizara ya Nishati na Madini Profesa Justin Ntalikwa
Waziri wa Nishati na
Madini Prof. Sospeter
Muhongo (wa kwanza
kushoto) akizungumza
wakati wa mkutano huo.
Kushoto kwake ni Katibu
Mkuu wa Wizara ya
Nishati na Madini, Profesa
Justin Ntalikwa akifuatiwa
na Naibu Katibu Mkuu
anayeshughulikia Madini,
Profesa James Mdoe na
watendaji wengine wa
wizara waliohudhuria
mkutano huo.

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Habari za nishati/madini

Novemba 4 - 10, 2016

ITALIA WAKARIBISHWA
KUWEKEZA SEKTA YA NISHATI

Waziri wa Nishati na Madini, Profesa Sospeter Muhongo (Kulia) na


Balozi wa Italia nchini Tanzania, Roberto Mengoni, wakiwa katika picha
ya pamoja, baada ya kikao baina yao.

Na Veronica Simba

aziri wa Nishati na
Madini, Profesa
Sospeter Muhongo
amewakaribisha
wawekezaji kutoka
Italia, kuja kuwekeza nchini hususan
katika sekta ya nishati.
Profesa Muhongo alitoa ukaribisho
huo kupitia kwa Balozi wa Italia
hapa nchini, Roberto Mengoni,
aliyemtembelea Waziri ofisini kwake
jijini Dar es Salaam hivi karibuni na
kufanya mazungumzo baina yao.
Waziri Muhongo alimweleza Balozi
Mengoni kuwa, zipo fursa nyingi za
uwekezaji hapa nchini katika Sekta ya
Nishati ikiwemo uzalishaji wa umeme
kwa kutumia vyanzo mbalimbali
ambavyo alivitaja kuwa ni gesi asilia,
makaa ya mawe, jotoardhi, upepo,
tungamotaka, mawimbi ya bahari na
maji.
Aidha, alitaja fursa nyingine ya
uwekezaji kuwa ni katika Bomba
la kusafirisha mafuta ghafi la Afrika
Mashariki, litakalotoka Hoima nchini
Uganda hadi Bandari ya Tanga nchini
Tanzania.
Hata hivyo, Profesa Muhongo
aliweka bayana kuwa, fursa zote za
uwekezaji zitatolewa kwa njia ya
ushindani wa wazi.
Awali, akieleza madhumuni ya
kumtembelea Waziri; Balozi Mengoni
alisema Italia ingependa kuwekeza
katika Sekta za Nishati na Madini
nchini ili pamoja na mambo mengine,
kuendeleza na kuimarisha uhusiano
mzuri uliopo baina ya nchi hizo mbili.
Profesa Muhongo alitumia fursa
hiyo pia kuiomba Italia ufadhili wa
masomo katika Sekta za Nishati na
Madini katika ngazi ya shahada za
uzamili na uzamivu, suala ambalo,
Balozi Mengoni aliahidi kulifanyia kazi.

Waziri wa Nishati na Madini, Profesa Sospeter Muhongo (katikati),


akiwa ameshikana mikono na Balozi wa Italia nchini Tanzania,
Roberto Mengoni (kushoto) na Ofisa kutoka Ubalozi huo (kulia),
ikiwa ni ishara ya ushirikiano baina ya nchi ya Italia na Tanzania.
Balozi wa Italia nchini
Tanzania, Roberto Mengoni
(kushoto), akisaini Kitabu cha
Wageni, ofisini kwa Waziri wa
Nishati na Madini, Profesa
Sospeter Muhongo (kulia),
mara baada ya kikao baina
yao.

Mtaalam kutoka Wakala wa


Nishati Vijijini (REA) Mhandisi
Jensen Mahavile, akifafanua
jambo kuhusu fursa za
uwekezaji katika miradi ya
umeme vijijini, wakati wa
kikao cha Waziri wa Nishati
na Madini, Profesa Sospeter
Muhongo na Balozi wa Italia
nchini Tanzania, Roberto
Mengoni (hawapo pichani).
Wengine pichani ni viongozi
na wataalam wa Wizara
na Taasisi zilizo chini yake,
walioshiriki kikao hicho.
Waziri wa Nishati na Madini,
Profesa Sospeter Muhongo
(kushoto), akimsikiliza kwa
makini Balozi wa Italia nchini
Tanzania, Roberto Mengoni
(kulia), wakati wa kikao baina
yao hivi karibuni. Kushoto kwa
Waziri ni Naibu Katibu Mkuu
wa Wizara, Profesa James
Mdoe.

Habari za nishati/madini

Novemba 4 - 10, 2016

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http://www.mem.go.tz

Profesa Muhongo afanya mazungumzo na


Balozi wa Urusi na kampuni ya Uranium One
Na Teresia Mhagama

zake na Uranium One ni pamoja


na teknolojia itakayotumika katika
kuchimba madini hayo, ulipaji wa
aziri wa Nishati na Mrabaha, Suala la Hisa kwa upande
Madini, Profesa
wa Serikali na Kampuni husika na
Sospeter Muhongo kupanda na kushuka kwa bei ya
amekutana
madini hayo duniani.
na kufanya
Katika kikao hicho pande zote
mazungumzo na Balozi wa
mbili zilikiri kuwa mradi huo ni
Urusi nchini, Yuri Popov ambaye
muhimu kwani madini hayo yana
aliambatana na Rais wa Kampuni ya matumizi mbalimbali ikiwemo
Uranium One, Vossily Konstantinov. kuzalisha umeme, kufanyia utafiti
Mazungumzo hayo yalihusu
wa kisayansi na kuendesha silaha za
utekelezaji wa uchimbaji wa madini
nyuklia hivyo ili kuhakikisha kuwa
ya Uranium katika eneo la Mto
mradi huo unafanikiwa Wataalam
Mkuju ambapo kampuni ya Uranium wa Tanzania na Uranium One
One ndiyo inayotekeleza mradi huo.
watakutana tarehe 10 Novemba,
Baadhi ya masuala yaliyojadiliwa 2016 ili kujadili masuala muhimu
katika Kikao hicho ambacho
yatakayopelekea mradi huo kuanza
kilihudhuriwa na Watendaji wa
rasmi.
Wizara ya Nishati na Madini, Taasisi

Waziri wa Nishati na Madini, Profesa Sospeter Muhongo (katikati)


Balozi wa Urusi nchini,Yuri Popov (kushoto) na Rais wa Kampuni ya
Uranium One,Vossily Konstantinov (kulia) wakiwa katika picha ya
pamoja mara baada ya kumaliza mazungumzo kuhusu utekelezaji
wa uchimbaji wa madini ya Uranium katika eneo la Mto Mkuju.
Kikao kilifanyika Makao Makuu ya Wizara ya Nishati na Madini na
kuhudhuriwa na Watendaji wa Wizara,Taasisi zake na kampuni ya
Uranium One.

Waziri wa Nishati na Madini, Profesa Sospeter Muhongo (katikati)


Balozi wa Urusi nchini,Yuri Popov (kushoto kwa Waziri), Rais wa
Kampuni ya Uranium One,Vossily Konstantinov (kulia kwa Waziri),
Msaidizi wa Rais wa kampuni ya Uranium One, Alexander Chepik (wa
kwanza kushoto) na Katibu wa Ubalozi wa Urusi nchini, Kiril Belikov
(wa kwanza kulia), wakiwa katika picha ya pamoja mara baada ya
kumaliza mazungumzo kuhusu utekelezaji wa uchimbaji wa Madini
ya Uranium katika eneo la Mto Mkuju.

Waziri wa Nishati na Madini, Profesa Sospeter Muhongo (kulia)


akiwa na Balozi wa Urusi nchini,Yuri Popov mara baada ya kumaliza
mazungumzo kuhusu utekelezaji wa uchimbaji wa madini ya Uranium
katika eneo la Mto Mkuju. Kikao kilifanyika katika Makao Makuu ya
Wizara ya Nishati na Madini na kuhudhuriwa na Watendaji wa Wizara,
Taasisi zake na kampuni ya Uranium One.

Balozi wa Urusi nchini,Yuri Popov akisaini Kitabu cha Wageni katika


Ofisi ya Waziri wa Nishati na Madini, Profesa Sospeter Muhongo
(kulia) wakati alipofika Makao Makuu ya Wizara ya Nishati na
Madini ili kufanya mazungumzo kuhusu utekelezaji wa uchimbaji wa
madini ya Uranium katika eneo la Mto Mkuju. kushoto ni Rais wa
Kampuni ya Uranium One,Vossily Konstantinov.

Waziri wa Nishati na Madini, Profesa Sospeter Muhongo (wa kwanza


kushoto) akiwa na Watendaji wa Wizara na Taasisi zake katika kikao
kilichokuwa kikijadili utekelezaji wa uchimbaji wa madini ya Uranium
katika eneo la Mto Mkuju. Kikao kilifanyika katika Makao Makuu
ya Wizara ya Nishati na Madini na kuhudhuriwa na Watendaji wa
Wizara,Taasisi zake, Balozi wa Urusi nchini na kampuni ya Uranium
One. Kushoto kwa Waziri ni Naibu Katibu Mkuu wa Wizara ya
Nishati na Madini, Profesa James Mdoe na wa Tatu kushoto ni Kaimu
Kamishna wa Madini, Mhandisi Ally Samaje.

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Habari za nishati/madini

Novemba 4 - 10, 2016

KIKAO NA WASAMBAZAJI
WA GESI MAJUMBANI

Watendaji kutoka kampuni zinazohusika na usambazaji


wa gesi majumbani wakifuatilia maelekezo yaliyokuwa
yanatolewa na Waziri wa Nishati na Madini, Profesa Sospeter
Muhongo (hayupo pichani).

Waziri wa Nishati na Madini Profesa Sospeter Muhongo akisisitiza


jambo katika kikao hicho.

Naibu Katibu Mkuu wa Wizara ya Nishati na Madini anayeshughulikia Madini,


Profesa James Mdoe (kushoto) pamoja na watendaji wengine wakifuatilia
maelekezo yaliyokuwa yanatolewa na Waziri wa Nishati na Madini Profesa
Sospeter Muhongo (hayupo pichani)

Waziri wa Nishati na Madini Profesa Sospeter Muhongo


(kushoto) akiongoza kikao kilichoshirikisha kampuni
zinazohusika na usambazaji wa gesi majumbani pamoja na
watendaji kutoka Wizara ya Nishati na Madini, Mamlaka ya
Udhibiti wa Huduma za Nishati na Maji (EWURA), Shirika la
Maendeleo ya Petroli Tanzania (TPDC), Mamlaka ya Udhibiti
wa Shughuli za Mkondo wa Juu wa Mafuta (PURA) na Wakala
wa Uagizaji wa Mafuta kwa pamoja nchini (PBPA).

Mkurugenzi Mtendaji kutoka Tanzania Association of Oil


Marketing, Salum Busarara akieleza jambo katika kikao hicho.

Habari za nishati/madini

Novemba 4 - 10, 2016

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THE IMPLICATION OF TRADE AGREEMENTS


ON LOCAL CONTENT REQUIREMENTS

By Ebeneza Mollel
Ministry of Energy and
Minerals

everal resource rich countries


have adopted Local Content
Policies in order to attain,
among other benefits;
capacity building and value
addition to the economy. Local
Content Policy in the oil and gas
industry originated from the North Sea
early in the 1970s and took the form of
import restrictions and/or the creation
of National Oil Companies.
Local Content requirements
stipulated in Local Content Policy
compel foreign investors to purchase
local goods and services, to employ,
to train, and to transfer technology to
local people.
Preferential treatment of local
goods and services has however
been offered only when the locally
manufactured goods are competitive
in terms of price, quality and can be
made available timely.
The protectionist and
discriminatory nature of local
content requirements has to some

extent enabled the growth of nascent


industries. Failure to comply with local
content requirements would result to
a foreign company in question to be
penalized as per countrys local content
legislation.
While Local Content Policy
seems to protect infant industries and
provide a room for them to grow
through setting stringent requirements,
Trade Agreements, both bilateral and
multilateral mandate the reduction or,
as appropriate, elimination of tariff
and non-tariff barriers to goods and
services.
Trade Agreements requires nondiscrimination of goods and services
as well as standardization of customs
procedures among member countries.
These agreements have been pressing
on to believing that by removing a red
tape and other obstacles like tax on
trade, the life of companies becomes
simpler since trading becomes easier
and operation costs decreases. In a
situation where each country sets

different rules and different customs


duty rates for imports coming from
different countries, companies operate
at either marginal profits or even at
loss.
The efforts to implement local
content requirements have to some
extent been affected by these trade
agreements. The total or partial ban of
importation of goods and services, for
instance, violates the legal pact among
partner states.
The issue of free trade pause
another challenge when one wants to
apply local content requirements to
shield nascent industries from strong
and competitive foreign companies. It
is therefore advised to keenly examine
the likely impact of Trade Agreements
on infant industries before signing
them unless otherwise the locally
owned nascent businesses will hardly
survive the competition from the
imported goods and services entering
the country unrestrictedly as a result of
agreements inked.

MATUKIO KATIKA PICHA


Naibu Katibu
Mkuu (Nishati)
Dkt. Mhandisi
Juliana Pallangyo
akimsikiliza
mjumbe
kutoka French
Development
Agency, Sebastian
Carreau aliyefika
Wizara ya Nishati
na Madini kujadili
miradi mbalimbali
ya Umeme.

Wataalam
wa Nishati
wakijadiliana
na Wajumbe
kutoka French
Development
Agency kuhusu
utekelezaji wa
miradi mbalimbali
ya umeme nchini,
katika kikao
kilichofanyika
katika Ukumbi wa
Mikutano Wizara
ya Nishati na
Madini.

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The Electricity (Market Re-OrganizationNovemba
and Promotion
Competition)
Regulations, 2016

The Electricity (Market Re-Organization and Promotion of Competition)


Regulations, 2016
GN. No. 292 (contd.)

GN. No. 292 (contd.)

ISSN 0856 034X


21st October, 2016

Supplement No. 42

SUBSIDIARY LEGISLATION
to the Gazette of the United Republic of Tanzania No. 44 Vol. 97 dated

st

21 October, 2016

Printed by the Government Printer Dar es Salaam by Order of Government

9.
10.
11.

Electricity retail activities


Electricity tariffs
Rules and licences of the Authority
PART III
COMPETITIVE POWER PROCUREMENT FRAMEWORK


12.

Competitive power procurement framework



PART IV
ESTABLISHMENT OF THE ELECTRICITY INFRASTRUCTURE
PROCUREMENT COMMITTEE

GOVERNMENT NOTICE NO. 292 published on 21/10/2016


THE ELECTRICITY ACT
(CAP.131)
___________
REGULATIONS
___________
(Made under section 41(6))
____________

THE ELECTRICITY (MARKET RE-ORGANIZATION AND PROMOTION OF


COMPETITION) REGULATIONS, 2016

ARRANGEMENT OF REGULATIONS

PART I
PRELIMINARY PROVISIONS


1.
2.
3.


4.
5.
6.
7.
8.

Citation
Application
Interpretation
PART II
RE-ORGANIZATION FRAMEWORK OF ELECTRICITY MARKET


25.
26.

Electricity market re-organization


Electricity generation activities
Transmission and distribution activities
System operation activities
Market operation activities
The Electricity (Market Re-Organization
and Promotion of Competition)
1
Regulations, 2016

GN. No. 292 (contd.)




13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.


THE ELECTRICITY ACT
(CAP.131)
_______


Interpretation


1. These Regulations may be cited as the Electricity
(Market Re-Organization and Promotion of Competition)
Regulations, 2016.


2. These Regulations shall apply to:
(a) re-organization of the electricity market;
(b) promotion of competition in generation,
transmission and distribution of electricity; and
(c) promotion of competition in consumer services
and private sector participation in the electricity
sub-sector.


3. In these regulations, unless the context otherwise
requires:

Cap. 131

Act means the Electricity Act;


Cap. 414

Authority means the Authority established under the


Energy and Water Utilities Regulatory Authority Act;

Committee means the Electricity Infrastructure Procurement


Committee established under regulation 14;


Cap. 78

Capital Markets and Securities Authority means the Capital


Markets and Securities Authority established under the
Capital Markets and Securities Act;

Distribution Network Operator also described as DNO

means a distribution network operator licensed by the


Authority to undertake electricity distribution
operations;

Electricity Supply Industry-Reform Strategy and Roadmap


ESI-RSR means a policy document issued by the
Minister responsible for energy in June 2014 to
restructure the Electricity Supply Industry in
Tanzania;

Independent System Operator also described as ISO


means a state owned independent system operator
licensed by the Authority to undertake transmission
system operations;

large power project also described as LPP means:

(a) a project with capacity above 10MW using various


energy sources and sells the generated power, at
wholesale, to a TNO, DNO or eligible customer or, at
retail, to end customers or combination of the two;

(b) in the case of transmission lines projects, a


transmission project with capacity greater or equal to
66kV; and

(c) in the case of distribution lines projects, a distribution
project with the step down transformer of at least
15MVA.

Main Grid means the interconnected electricity transmission
network to which the largest cumulative capacity of
electricity generating facilities are connected;

market operation services means services which are
necessary in order to administer wholesale market
operations and includes:



(a) registration of market participants and balance
responsible parties (BRP);

Funds for feasibility studies


Minister to supplement procedures

GN. No. 292 (contd.)


PART I
PRELIMINARY PROVISIONS


Application

PART V





GENERAL PROVISIONS

The Electricity (Market Re-Organization


and Promotion of Competition)
2
Regulations, 2016

REGULATIONS
_______
(Made under section 41(6))
_______

THE ELECTRICITY (MARKET RE-ORGANIZATION AND PROMOTION
OF COMPETITION) REGULATIONS, 2016

Citation

Establishment of the Committee


Duties and functions of the Committee
Funds of the Committee
Coordinator of the Committee
Nomination and appointment of members
Tenure of officer of members
Resignation of a member
Cessation of membership
Procedure for filling in vacant posts
Meetings of the Committee
Remuneration of a member
Consumer protection

(b) registration of market participants for participation in


4

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Re-Organization
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Regulations, 2016

GN. No. 292 (contd.)

The Electricity (Market Re-Organization and Promotion of Competition)


Regulations, 2016
GN. No. 292 (contd.)

auctions for cross border capacities allocation;

(b) sells at retail directly to end customers or some


combination of the two;

system operation services means all services which are


necessary in order to dispatch generation and provide
safe and efficient power transfer in the transmission
system, resolve interruptions in transmission of
power, maintain and re-establish the voltage balance
in the transmission system;


Cap. 38

loads for the companies taking over electricity from


the transmission system; and

Tanzania Investment Center means the Tanzania Investment


Center established under the provisions of the
Tanzania Investment Act;

tender Board means the tender Board of ISO or a DNO;

(h) creation of financing report including obligations of

Transmission Network Operator also described as TNO


means a transmission network operator licenced by the
Authority to undertake electricity transmission
operations; and


Cap. 370

Treasury Registrar Office means the public office


established under the Treasury Registrar (Powers and
Functions) Act.

(c) calculation of imbalance of BRP and distribution of

compensations to BRP;

(d) ancillary services calculation;

(e) creation of reports on internal and cross border trades;

(f) creation of monthly and annual reports on


transmission network flows;

(g) creatian of reports on the size of energy and peak

each market participant involved in auctions for cross


border transmission capacities;

member means a member of the Committee appointed under


regulation 14;

Minister means the Minister responsible for electricity


matters;

Off Grid means an electricity transmission and distribution


network physically isolated from the Main Grid;
procuring entity means a DNO for projects to be connected
to a distribution network or a TNO for projects to be
connected to a transmission network;
Rural Energy Agency means the Rural Energy Agency
established under the Rural Energy Act;
sector entities means the Ministry responsible for electricity,
the Treasury Registrars Office, the Attorney
Generals Chambers, the Tanzania Investment Center,
the Rural Energy Agency, a TNO and a DNO;
Small Power Project also described as SPP means an
electricity generating project with an installed
capacity less or equal to 10MW using renewable
energy, fossil fuels, cogeneration technology, or some
hybrid system combining fuel sources and either:


Cap. 321

PART II
ELECTRICITY MARKET RE-ORGANIZATION FRAMEWORK
Electricity
market re-
organization

The Electricity (Market Re-Organization


5 and Promotion of Competition)
Regulations, 2016

structure shall, within the time prescribed in the Schedule,


unbundle its generation transmission and distribution
activities.


(3) Without prejudice to the provisions of sub-
regulation (1), all operators undertaking electricity generation
activities may generate electricity and:

(a) sell it to a DNO or a distribution company


be agreed upon by the parties; or

(c) use it for its own consumption.


Transmission
and distribution
activities


6.-(1) An operator undertaking electricity transmission
or distribution activity shall operate in a monopoly state.


(3) An operator shall, subject to rules published by the
Authority, be required to undertake electricity transmission
and distribution activities and shall specifically be obliged:


(2) Notwithstanding the provisions of sub-regulation
(1), all transmission activities shall be undertaken by a
transmission company.

(a) to provide access to a generation licensee or an


System
operation
activities


Market
operation

(2) Any existing operator with a vertically integrated

distribution company or an eligible customer.


7.-(1) A system operator shall have exclusive rights in
undertaking system operation activities in areas connected to
the Main Grid.


(2) A DNO who operates a distribution network
connected to an Off-Grid shall have exclusive rights in
undertaking system operation activities in that respective
network.


8. A market operator shall, when power trading


5.-(1) There shall be competitive electricity generation
activities in Mainland Tanzania.


(2) No TNO or DNO shall procure a power project
save as provided for under these Regulations and the rules
published by the Authority.

(b) not to discriminate any generation licensee,


commences in Mainland Tanzania, have exclusive powers to


undertake market operations activities.


Electricity retail
9. Electricity retail activities shall, in accordance with
activities
the timeline prescribed in the ESI-RSR be conducted in a
competitive manner.


Electricity

10. The Authority shall, in accordance with the Act
tariffs
and ESI-RSR prescribe the applicable tariffs in each segment
in the electricity supply market.



Rules and

11. All operators who undertake electricity generation,
licences issued
transmission, distribution, system and market operations shall
by the Authority
be bound by the rules published and licences issued by the
Authority.


PART III
COMPETITIVE POWER PROCUREMENT FRAMEWORK


Competitive

12.-(1) All procurement of large power projects for all
power
technologies and SPP projects using solar and wind
procurement
technology shall use framework for competitive procurement
framework
established by Regulator.

eligible customer to use its infrastructure subject


to payment of a wheeling charge or tariff
approved by the Authority; and

activities

(b) sell it to an eligible customer subject to terms to


(3) The Minister shall oversee the re-organization
process of the electricity market in accordance with the
provisions of these Regulations and the ESI-RSR.

No. 292 (contd.)


GN.

pursuant to a signed power purchase agreement;


(2) The re-organization of the electricity market shall
be effected in accordance with the timelines prescribed in the
Schedule.

The Electricity (Market Re-Organization


and Promotion of Competition)
6
Regulations, 2016

No. 292 (contd.)


GN.


4.-(1) Electricity market shall be re-organized as
prescribed in these regulations.

Electricity
generation
activities

(a) sells the generated power at wholesale to a DNO; or


(3) A private DNO may procure a large power project
or an SPP using wind or solar technology using the procedure
prescribed under the rules published by the Authority or use
their own procedures,

Provided that, such procedures are competitive and approved


by the Authority.


(4) Any person who procures a power project in
contravention to this regulation, commits an offence and shall,
on conviction, be liable to a fine of ten million shillings or
imprisonment for a term not less than two years or both.

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Regulations, 2016
GN. No. 292 (contd.)

GN. No. 292 (contd.)


PART IV
ESTABLISHMENT OF THE COMMITTEE, ITS FUNCTIONS,
COMPOSITION AND MEETINGS


Establishment of
Committee

(b) one person from the Treasury Registrars Office;

(c) one person from the Attorney Generals


Chambers;

(d) one person from the Rural Energy Agency;

(e) one person from the Tanzania Investment Center;


and


(5) Notwithstanding the provisions of sub-regulation
(2), a person shall not be appointed as member of the
Committee unless such person:

(a) is a graduate of a recognized University or

No. 292 (contd.)


GN.

be, have regard to the desirability of the Committee to have


members with knowledge and experience in matters relating to
electricity sector, procurement issues or Government policies.


Tenure of office
18. A member of the Committee shall serve for a term
of members
of three years and not eligible for re-appointment.


Resignation of a
19. A member may, at any time resign, by giving
member
notice in writing to the Minister and from the date specified in
the notice or if no date is so specified, from the date of receipt
of the notice by the Minister, he shall cease to be a member.


Cessation of

20. A person shall cease to be a member if such
membership
person:
(a) is declared bankrupt;

(b) is convicted of a criminal offence involving
dishonest, fraud or an offence with imprisonment
term of not less than six months;

(c) is incapable of carrying out his duties due to ill
health, physical or mental impairment; or

(d) fails to attend at least three consecutive meetings
of the Committee without reasonable cause in a
period of twelve consecutive months.




Procedure on

21.-(1) A sitting member who-
filling in vacant
(a) ceases to work with the respective sector entity;
posts


(a) preparing and submitting the Request for

(b) analysing and evaluating bid proposals received



Funds of the
Committee

Coordinator of
the Committee


Nomination and
appointment of
members

(c) has knowledge of the energy or utility regulation


The Electricity (Market Re-Organization
and Promotion of Competition)
9
Regulations, 2016


14. The Committee shall coordinate procurement of
electricity infrastructure to DNOs or TNOs and shall be
responsible for:
Qualification (RFQ) and Request for Proposal
(RFP) documents in respect of procuring power
project to the tender Board for approval;

(b) is a senior officer and has at least ten years

from developers of power projects and thereafter


submit such proposals to the tender Board for
approval; and

(c) any other functions as may be assigned by the
Minister.



15. Procuring entities shall, in each financial year, set
aside sufficient funds to facilitate functions of the Committee.


16. The coordinator shall be employed within the
Ministry and shall be the champion of the competitive
procurement of power project, the secretary to the Committee
and specifically be responsible for:

(a) coordinating activities of the Committee; and

(b) establishing the capacity needs to be procured by
the procuring entities in liaison with the Ministry
and the Authority.


17. The sector entities and the Minister shall, while
nominating names or appointing a member, as the case may


The Electricity (Market Re-Organization
and Promotion of Competition)
10
Regulations, 2016

No. 292 (contd.)


GN.



22.-(1) The Committee shall meet whenever there is
business to transact.



(2) The Committee shall have powers to regulate its
own proceedings.


Remuneration of
23. Remuneration and allowances of a member shall
a member
be as set out in their letters of appointment or as may be
determined by the Minister on the advice of a procuring entity.


Consumer

24.- (1) All operators undertaking licensed activities
protection
which are open to competition including generation and retail
business shall not engage in anti-competitive behaviours.



(2) All operators undertaking licensed activities which
are monopoly in nature, including transmission activities,
distribution activities, system operations activities and market
operations activities shall offer their respective services in a
fair and non-discriminatory manner.





(3) The Authority shall regulate tariffs, rates and
charges in respect of any licensed activity where it determines
that:


(a) such activity is a monopoly service;


(b) competition has not yet developed to such an
extent that interest of customers are protected; or


(c) a particular licensee is a dominant supplier.



(4) Any person who contravenes this regulation

commits an offence and shall, on conviction, be liable to
Cap. 285
penalties prescribed under the Fair Competition Act.


PART VI
GENERAL PROVISIONS


Funds for

25.-(1) All procuring entities shall, in each financial
Meetings of the
Committee

(b) dies;
(c) is removed pursuant to regulation 20;
(d) is appointed to a position higher than a Director;
or
(e) is demoted to a position lower than a senior
officer,
shall cease to be a member and his position shall be deemed to
be vacant within the context of sub-regulation (2).


(2) Any vacant post as a result of the reasons referred
to sub-regulation (1), shall be filled pursuant to regulation 13,
provided that any person appointed to fill in the vacant post,
shall serve for the remaining period of the tenure.

11


(6) The Committee may co-opt such number of
experts to assist it in discharging its functions.

experience in management, procurement, law,


economics, finance or engineering;

(e) is, in the opinion of the Minister, otherwise

Duties and
functions of
Committee

equivalent;


(4) Members of the Committee shall elect amongst
themselves the Deputy Chairperson, who shall serve for the
period of one year and be eligible for re-appointment for one
further term.

(d) is willing to serve as a member; and

(f) two persons from a procuring entity.


(3) Members of the Committee referred to under sub-
regulation (2) shall be nominated by sector entities and be
appointed by the Minister pursuant to these regulations.

industry;

suitable to perform the functions and duties of a


member competently and honestly.


13.-(1) There shall be established a committee to be
known as the Electricity Infrastructure Procurement
Committee.


(2) The composition of the Committee shall be as
follows:
(a) one person from the Ministry responsible for
electricity, who shall be the chairperson;

11


12

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GN. No. 292 (contd.)


GN. No. 292 (contd.)


PART IV
ESTABLISHMENT OF THE COMMITTEE, ITS FUNCTIONS,
COMPOSITION AND MEETINGS


Establishment of
Committee

(b) one person from the Treasury Registrars Office;

(c) one person from the Attorney Generals


Chambers;

(d) one person from the Rural Energy Agency;

(e) one person from the Tanzania Investment Center;


and

(d) is willing to serve as a member; and

(e) is, in the opinion of the Minister, otherwise


(6) The Committee may co-opt such number of
experts to assist it in discharging its functions.


14. The Committee shall coordinate procurement of
electricity infrastructure to DNOs or TNOs and shall be
responsible for:

Duties and
functions of
Committee

(b) analysing and evaluating bid proposals received

from developers of power projects and thereafter


submit such proposals to the tender Board for
approval; and

(c) any other functions as may be assigned by the
Minister.



Funds of the
Committee


(4) Members of the Committee shall elect amongst
themselves the Deputy Chairperson, who shall serve for the
period of one year and be eligible for re-appointment for one
further term.

(a) is a graduate of a recognized University or


Coordinator of
the Committee

equivalent;

(b) is a senior officer and has at least ten years

experience in management, procurement, law,


economics, finance or engineering;


Nomination and
appointment of
members

(c) has knowledge of the energy or utility regulation


9

(a) preparing and submitting the Request for

Qualification (RFQ) and Request for Proposal


(RFP) documents in respect of procuring power
project to the tender Board for approval;

(f) two persons from a procuring entity.


(5) Notwithstanding the provisions of sub-regulation
(2), a person shall not be appointed as member of the
Committee unless such person:


(3) Members of the Committee referred to under sub-
regulation (2) shall be nominated by sector entities and be
appointed by the Minister pursuant to these regulations.

industry;

suitable to perform the functions and duties of a


member competently and honestly.


13.-(1) There shall be established a committee to be
known as the Electricity Infrastructure Procurement
Committee.


(2) The composition of the Committee shall be as
follows:
(a) one person from the Ministry responsible for
electricity, who shall be the chairperson;

The Electricity (Market Re-Organization and Promotion of Competition)


Regulations, 2016



15. Procuring entities shall, in each financial year, set
aside sufficient funds to facilitate functions of the Committee.


16. The coordinator shall be employed within the
Ministry and shall be the champion of the competitive
procurement of power project, the secretary to the Committee
and specifically be responsible for:

(a) coordinating activities of the Committee; and

(b) establishing the capacity needs to be procured by
the procuring entities in liaison with the Ministry
and the Authority.


17. The sector entities and the Minister shall, while
nominating names or appointing a member, as the case may

10

MATUKIO KATIKA PICHA

u
Waziri wa Nishati na Madini, Profesa Sospeter
Muhongo (wa pili kutoka kulia) na Makamu wa
Rais wa Afrika wa Kampuni ya Total pamoja na
Ujumbe wake alioongozana nao wakiwa katika
picha ya pamoja Ofisini kwa Waziri Muhongo
katika Makao Makuu ya Wizara hiyo jijini Dar
es Salaam.

Waziri wa Nishati na Madini, Profesa Sospeter


Muhongo (kulia) na Makamu wa Rais wa Kampuni
ya Total Afrika wakiwa katika picha ya pamoja baada
ya kikao chao kilichojadili masuala mbalimbali
ikiwemo ujenzi wa Bomba la Mafuta kutoka nchini
Uganda hadi Bandari ya Tanga nchini Tanzania.

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13

CURRENT TRENDS
By Raphael B.T. Mgaya

ATTRACTING FINANCING FOR STATE ENERGY PROJECTS


INTRODUCTION
Energy sufficiency is critical for
the development of any nation. In
every epoch of human development,
energy has been a defining factor for
breakthrough. The discovery of fire a
million of years ago has had immense
impact on human development, indeed
the evolutionary biologist Charles Darwin
called it the greatest discovery made by
humanity, excepting only language. It
was the energy from coal that fueled the
industrial revolution in Europe in the
17th Century. The discovery of fuel from
hydrocarbon has been the single greatest
factor for modern human civilization
which began in early 19th century.
SOURCES OF FINANCING
The market has various options of
equity and debt funding sources including
the multilateral institutions, regional
development banks, export-import credit
banks, commercial banks, institutional
investors, equity and bond markets and
equipment suppliers credit.
Multilateral Institutions
The common international
multilateral institutions include the
International Monetary Fund (IMF) and
the International Bank for Reconstruction
and Development-IBRD, commonly
referred to as the World Bank. These
two institutions have had incomparable
influence in the economies of the
poor countries in terms of introducing
economic and monetary policies that
are deemed to create stability and
market reforms. The World Bank
has three affiliates which are very
instrumental in international energy
financing, namely, the International
Development Association (IDA), the
International Finance Corporation (IFC)
and Multilateral Investment Guarantee
Agency (MIGA).
IDA was established in 1960 as a
World Banks concessional lending arm,
providing interest free long-term loans to
the poorest countries in order to alleviate
poverty and create base for sustainable
growth. IDA loans have maturities
ranging from 25-40% years with 5-10
years grace period on repayment of
principal. The credits from the World
Bank have however been the subject of
severe criticism. One of the severest critics
is Dambisa Moyo, a Harvard and Oxford
trained economist and a former World
Bank and Goldman Sachs employee
who regards the World Bank credit as

a reason for poverty of the recipient


countries (Moyo, Dead Aid, 2010).
The main objective of establishing
MIGA in 1988 was to promote foreign
investments in developing countries
by providing guarantees against
political risks. The main political
risks that lenders are concerned with
include breach of contract by the host
government, difficulties in transfer of
currency, currency inconvertibility and
expropriation.
Regional Development Banks
The regional development banks
are owned by the governments of
member states. In Africa, the African
Development Bank (AfDB) is a case in
point. The purpose of these institutions
is to alleviate poverty, promote economic
growth and social development in their
respective regions.
Bilateral Financing Institutions
These are established in order to
support investment and provide technical
assistance in developing countries and
promote export of domestic products and
technology.
These include the US Exim Bank,
Japan Exim Bank, China Exim Bank,
India Exim Bank etc. These institutions
help to finance electric power and
gas projects, through the provision of
financing to an importing entity usually
a project company, through direct
lending, on-lending, or interest rate
equalization. Direct loans are usually
tied to the purchase of equipment from
manufacturers in the country of the
export credit agency. This is the method
which was used to finance the Songo
Songo/Mtwara to Dar es Salaam gas
pipeline whereby the Exim Bank of
China extended credit to the Government
of the United Republic of Tanzania and
the later on-lent the fund to TPDC.
Other sources of funding
The state projects can also be
funded from public equity and bond
offerings. These entail listing the state
utility or Project Company with the
stock exchange such as the DSE where
members of public may purchase equity
shares. The government can as well issue
bonds in order to raise capital for funding
energy projects.
Syndicated loans are also a common
way of raising fund for energy projects.
In this case one bank acts as an
administrative agent for the group of

banks. Interest rates are negotiated as a


fixed spread above a certain benchmark
usually LIBOR. The benefit of this
method is that it gives the Government
or project sponsors access to large loans
without costs associated with bond
offering.
MANAGEMENT OF RISKS
Risks differ whether or not the project
is in construction or operation stage.
During construction, the main risk that
lenders are worried about is whether the
construction will be completed in time
and within the budget and according to
the specifications.
During the operation and
maintenance phase, usually the risk is less
than what is present at earlier stage. The
risk at this stage includes political risks
and risks of technical failure. Technical
failure includes thing like scarcity of
raw materials, reduction of demands
of products which affects the project
revenues, change of tax rates and foreign
exchange risks.
Political risks can be mitigated
through arrangement of the political risk
guarantee from bilateral agencies. The
close relation between governments
and the multilateral agencies has a halo
or crowding-in effect which helps to
mobilize the requisite fund beyond the
guaranteed amount.
Lenders would like to be assured with
permits to hold off-shore bank accounts
for foreign currency. This protects them
against foreign exchange exposure such as
inflation, interest rate changes, currency
devaluation, currency inconvertibility and
remittance restrictions.
Take or pay provisions in the Power
Purchase Agreement with a local utility
for a fixed term at a fixed prices usually
with a built-in escalation for a floating
operation costs assures that the project
company will have a guaranteed demand
that will help it to generate enough
revenue to service debts, earn a reasonable
margin and meet the O & M costs.
Political stability and economic
growth of a host country are important
consideration when lenders evaluate a
project. The two factors are important
external environment of any firm that
affect its profitability. Stable democracies
and growing economies have the
potential to attract more project financing.
Strong institution of private property
is said to be one of the reasons for
prosperity that characterize the Western
advanced economies (De Sotto, The
Mystery of Capital, 2003). This entails

that there should be robust contractual


and legal framework for compensation
in case of any expropriation. Creeping
expropriation which occurs gradually
through increased taxes, fees and other
regulations is normally greater than the
outright seizure.
It is usually advised that change of
government policy should be regarded
as a governmental force majeure which
must have robust compensation package
for investors. Risks should be allocated to
a party best suited to bear it.
The political risks such as
nationalization, change of law etc. can be
addressed by opening a project to local
participation which ties the financial
interest of the local population to the
success of the project.
Dispute resolution is very critical
for the attractiveness of the project by
lenders. Unresolved disputes present
a serious risk to investors and lenders
as such there must be comprehensive
and certain mechanism for resolving
disputes. International parties prefer
international arbitration. Arbitral venue
should preferably be in a country which
has signed the New York Convention
on Recognition and Enforcement of
Foreign Arbitral Awards of 1958 (New
York Convention). In selecting venue
consideration should be given to countries
which permit international arbitration on
the issue. Tanzania has ratified the New
York Convention.
CONCLUSION
Energy sufficiency is a key to
economic growth. If the industrialization
agenda of the Fifth Phase Government
is to materialize then the Government
must ensure energy sufficiency. The rising
energy demand will only be met with
equivalent supply. Future energy supplies
depend on the current investments in the
energy project. The private financing is
crucial in this regard. There is no country
on earth which has met its energy
demand by sovereign funding i.e. funding
from the sovereign balance sheet. Rather,
there must be a mix of both private and
public financing. For this to happen,
lenders and investors need to be assured
that their monies will generate a fair
return. It is therefore plausible to address
the highlighted challenges and create
the appropriate business environment
that will attract financing in the energy
projects.

The author is an advocate of the Superior Courts in Tanzania and subordinate courts save the Primary Courts. He currently works as a
Senior Legal Officer for the Ministry of Energy and Minerals. He holds LLB (Hons.) (Dar); LLM (Intl law) (Warwick); LLM (Oil and Gas law)
(RGU Aberdeen); MBA (Mzumbe); CLE (Mississippi).
He can be reached through: raphael.mgaya@gmail.com.
DISCLAIMER:

Views expressed herein are entirely authors views and should not be associated with his employer.

14

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NewsBulletin

Habari za nishati/madini

http://www.mem.go.tz

Novemba 4 - 10, 2016

15

WAWEKEZAJI WAZALENDO WAPATIWA LESENI ZA MADINI


Na Veronica Simba

aziri wa Nishati na Madini, Profesa


Sospeter Muhongo amesaini Leseni za
Madini za uchimbaji wa kati za wawekezaji
wazalendo, Salim Mohamed Salim na
Joshua Stephen Kazi.
Alisaini leseni hizo hivi karibuni Ofisini kwake jijini Dar es
Salaam.
Kabla ya kusaini leseni husika, Profesa Muhongo alipokea
taarifa za utendaji kazi wa wawekezaji hao kutoka kwa
Maafisa Madini wa maeneo ambayo uchimbaji utafanyika
ili kujiridhisha endapo wanastahili na kuwataka waendeleze
uchapa kazi na ubunifu kama walivyoelezewa kuwa na sifa
hizo.
Awali, Kaimu Kamishna wa Madini, Mhandisi John Shija
alisema kuwa, Salim Mohamed Salim wa Dar es Salaam,
aliwasilisha maombi ya kubadilisha leseni yake kutoka leseni
ya uchimbaji mdogo (PML) kuwa leseni ya uchimbaji wa
kati (ML), yenye ukubwa wa kilomita za mraba 0.11 iliyopo
katika eneo la Mumbwi, Handeni na ML 567/2016 yenye
ukubwa wa kilomita za mraba 0.19 iliyopo Epanko, Ulanga.
Aidha, Kaimu Kamishna Shija alisema kuwa, kwa
upande wa Joshua Stephen Kazi wa Mwanza, aliwasilisha
maombi ya kubadilisha leseni zake kutoka leseni ya uchimbaji
mdogo (PML) kuwa leseni ya uchimbaji wa kati (ML),
ambapo maombi hayo yalifanyiwa kazi na kupewa leseni
namba ML 563/2016 yenye ukubwa wa kilomita za mraba
0.07 iliyopo eneo la Itumbi, Chunya na ML 564/2016 yenye
ukubwa wa kilomita za mraba 0.08 iliyopo eneo la Mbangala,
Chunya.

Waziri wa Nishati na Madini, Profesa Sospeter Muhongo (kulia), akisaini leseni ya Mwekezaji
wa Madini mzalendo, Salim Mohamed Salim (wa pili kutoka kulia).Wengine pichani ni wabia
wa mwekezaji huyo.

Waziri wa Nishati na Madini, Profesa Sospeter Muhongo (kushoto),


akizungumza na mwekezaji wa madini mzalendo Joshua Stephen Kazi
(Kulia), kabla ya kusaini leseni yake.

Waziri wa Nishati na Madini, Profesa Sospeter Muhongo, akisaini leseni ya


Salim Mohamed Salim.Wanaoshuhudia pichani kutoka kushoto ni Naibu
Katibu Mkuu, Profesa James Mdoe, Kaimu Kamishna wa Madini Mhandisi
John Shija, Afisa Madini Mkazi wa Handeni Frank Makyao na Mtaalam
wa Madini kutoka Kitengo cha Leseni Mhandisi Nuru Shabani.

Waziri wa Nishati na Madini, Profesa Sospeter Muhongo (kushoto),


akimsikiliza kwa makini mwekezaji wa madini mzalendo, Salim Mohamed
Salim (kulia).Wengine pichani ni baadhi ya viongozi na wataalam kutoka
Wizarani na Taasisi zilizo chini yake.

Waziri wa Nishati na Madini, Profesa Sospeter Muhongo (kulia),


akimkabidhi leseni yake mwekezaji mzalendo, Joshua Stephen Kazi mara
baada ya kuisaini.

16

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BODI YA TMAA YAZINDULIWA

Wajumbe wa Bodi ya Ushauri ya Wakala wa Ukaguzi wa Madini Tanzania


(TMAA) wakisikiliza Hotuba iliyokuwa inatolewa na Naibu Katibu Mkuu
wa Wizara ya Nishati na Madini anayeshughulikia Madini, Profesa James
Mdoe (hayupo pichani).

Kaimu Kamishna wa Madini Nchini, Mhandisi Ally Samaje akizungumza


kwenye uzinduzi wa Bodi ya Ushauri ya Wakala wa Ukaguzi wa Madini
Tanzania (TMAA) jijini Dar es Salaam tarehe 03 Novemba, 2016.

Kutoka kushoto Kaimu Kamishna wa Madini Nchini, Mhandisi Ally Samaje,


Mtendaji Mkuu wa Wakala wa Ukaguzi wa Madini Tanzania.TMAA),
Mhandisi Dominic Rwekaza pamoja na Watendaji wengine kutoka Wakala
huo, wakisikiliza maelekezo yaliyokuwa yanatolewa na Naibu Katibu Mkuu
wa Wizara ya Nishati na Madini anayeshughulikia Madini, Profesa James
Mdoe (hayupo pichani).

Naibu Katibu Mkuu wa Wizara ya Nishati na Madini anayeshughulikia


Madini, Profesa James Mdoe akielezea majukumu ya Wakala wa Ukaguzi
wa Madini Tanzania (TMAA) kwenye uzinduzi huo.

Naibu Katibu Mkuu wa Wizara ya Nishati na Madini anayeshughulikia


Madini, Profesa James Mdoe (kulia) akimkabidhi mwongozo Mwenyekiti
wa Bodi ya Ushauri ya Wakala wa Ukaguzi wa Madini Tanzania (TMAA),
Charles Sabuni (kushoto) mara baada ya kuzindua Bodi hiyo.

Mwenyekiti wa Bodi ya Ushauri ya Wakala wa Ukaguzi wa Madini Tanzania


(TMAA), Charles Sabuni akieleza jambo katika uzinduzi huo.