Hotel and hospitality industry stakeholders in Tanzania are
expecting to see the end of erratic and expensive power supply to their
establishments as multi-million dollar power generation and distribution
projects launched.
Under the funding from Tanzanian government, the Tanzania Electric
Supply Company is expecting to produce and increase power supply in key
business ventures, including tourist hotels, mostly located in the
capital city of Dar es Salaam.
Through the government funding of US$4 billion to boost electricity
generation and supply in Tanzania between 2014 and 2016, big investment
ventures including tourist hotels will be relieved from unreliable power
supply.
Tanzania Electric Supply Company, a sole power generating and
distribution entity had embarked on big power projects aimed to end
power rationing or load shedding in key business ventures in Tanzania.
The utility company plans to invest big chunks of money to gas and
coal power generation projects, targeting major business localities in
Tanzania, the company’s managing director Mr. Felchesm Mramba said.
Increased gas supplies and new investments in the energy sector
within Tanzania are expected to produce power surplus of 1,500 megawatts
by 2015 providing the possibility to export electricity, Mr. Mramba
said.
In total, Tanzania is expecting to generate 3,000 megawatts, making
this country among top African countries boastful of adequate power
supplies, Mr. Mramba said.
Despite pitfalls in power supply during the past 15 years, new
projects targeting massive production of electricity through funding
from various international financial institutions under agreements with
the government of Tanzania.
“We are looking to see power shortage in Tanzania delve in archives and a history of the past,” Mr. Mramba told eTN.
On spot visit to power generation plants in Dar es Salaam justified
the utility company’s plans to end power blues. Tanzania government is
currently implementing a restructuring plan of the Tanzania Electric
Supply company so as to make it more productive and competitive.
Members of the Hotel Association of Tanzania (HAT), an umbrella
organization that oversees 80 leading and key hotels in Tanzania, had
earlier decried over extra costs for fuel to run activities that needed
power.
The hotel industry, just like the rest of the production sector, has
been hurt in one way or the other by the power crisis during the past
two years before the government took appropriate measures to rectify the
situation.
Hotel industry stakeholders once said power shedding was damaging the
image of tourism in Tanzania, taking into a reality that visitors don’t
appreciate traffic lights not working on streets, elevator breakdowns,
and no lights at hotel rooms and lacking laundry services.
Some hotels have once incurred extra operational costs of between
US$1,000 to US$18,000 to foot fuel and maintenance costs for standing
generators each day during power shedding hours.
It has been observed that the growth of hotels and restaurants in Tanzania will jump from 7.7 percent and 9.9 percent in 2015.
Other than big cities and towns, Tanzania Electric Supply Company is
currently working with international institutions to supply electricity
in most rural areas of Tanzania, including the Southern Highland areas
where tourist projects are springing up.
Other such areas targeted for power supply projects are Lake Victoria
and Central parts of Tanzania where key investment ventures are coming
up.
After decades of dependence on hydro-power, now, the utility company
is investing heavily power generation from natural gas and coal, the
major sources of electricity generation in most European countries and
South Africa, Mr. Mramba said.
Trillions of cubic liters of natural gas and millions of cubic meters
of coal have been discovered in southern parts of Tanzania, bringing
new hopes to see the end of power generation and supply in this African
country.
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