TANESCO joins hands with German financial cooperation, AFD and the EU to expand power infrastructure in North Western Tanzania

Head of Cooperation for European Union, Eric Beaume gives his  remarks during the event. Looking from (right) is; Tanesco Managing Director, Eng Felchesmi Mramba, Embassy of Federation Republic of Germany, Counselor Claudia Imwolde-Kraemer and KFW Director, Dr Helmut Schon

Agence Francaise Development (afd) Country Representative, Emmanuel Baudran shares views with Charg'e de Mission-Multi-sectoeurs Dennis Munuve. Right is Embassy of Federation Republic of Germany, Counselor Claudia Imwolde-Kraemer and KFW Director Dr Helmut Schon.

Some delegates follow the proceeding of the event.

The Acting Commissioner for Energy in the Ministry of Energy and Minerals Norbert Kahyoza gives his welcoming remarks to the delegates.

TANESCO Public Relation Officer Leila Muhaji welcomes the delegates to the function.

Tanesco Managing Director, Eng Felchesmi Mramba speaks to reporters during the function. Looking on is the Acting Commissioner for Energy in the Ministry of Energy and Minerals, Norbert Kahyoza.

KFW DIRECTOR Dr Helmut Schon exchanges the 42 Million Euros documents with Tanesco Managing Director, Eng Felchesmi Mramba in Dar es Salaam today. Witnessing from (left) are; Agence Francaise Development (afd) Country Representative, Emmanuel Baudran, Head of Cooperation for EU, Eric Beaume, Embassy of Federation Republic of Germany, Counselor Claudia Imwolde-Kraemer, the Acting Commissioner for Energy in the Ministry of Energy and Minerals, Norbert Kahyoza, TANESCO Deputy MD, Decklan Mhaiki, Project Manager Eng. Paschal Kibasa and TANESCO Representative of Company Secretary, John Mwesiga. (Prepared by Robert Okanda)

   

Remarks by Eric Beaume, Head of Cooperation

Delegation of the European Union to Tanzania

 “Electrification of North Western Tanzania – Rural Electrification Component"

29^th January 2016

Managing Director TANESCO

Fellow Development Partners

Members of the Media

Honourable guests, friends

Ladies and gentlemen,                                                                                                                                 

HABARI ZA AZUBUHI, 

It is pleasure to be here today to attend this signing event. I can think of no better to start 2016 with you, than by launching a joint project that will concretely contribute to meeting target 7 of the recently adopted Sustainable Development Goals in Tanzania which is about "expanding

infrastructure and upgrade technology for supplying modern and

sustainable energy services for all by 2030".

There is no need to emphasize the importance of energy for socioeconomic growth and poverty alleviation. This is recognised in national development strategies and sector plans and we expect the catalytic role of energy to continue to feature high in the new generation of development plans now in the making.

The EU engaged in the sector with the objective to assist TZ make progress towards the ambitious goals that have been set in connection with the 2025 vision, in particular when it comes to scaling up access to affordable and sustainable energy services in rural areas.

Valuable results have already been achieved under the 10^th European Development Fund with off grid and mini grids projects, in particular mini-hydro power projects and promising work is ongoing to promote hybrid solar systems and other renewable energy solutions;

At the same time we are looking at increasing our support to "on grid" transmission and distribution projects, particularly under our main bilateral cooperation programme funded under the 11^th European Development Fund, covering the period until 2020. We are working closely with sector institutions to finalise and operationalise an initial EUR 50 million financial support package for grid extension and densification, focusing on selected regions (Morogoro, Dodoma, ect

In parallel with concrete projects in the field the EU has also engaged in dialogue and support around the implementation of the ambitious programme of core energy sector reforms that Tanzania has embarked on and which are geared toward increasing efficiencies and financial viability in the sector, improving service delivery and creating the conditions for greater private sector investment.

We look forward to our continued cooperation with key sector institutions, including the Ministry, REA, TANESCO, EWURA, and the coordination among the many development partners and developers, that will continue to be key to ensure that we make the best use of resources made available to support the development of the energy sector in Tanzania.

Ladies and gentlemen

The project that we are launching today complements very well efforts put in place under our bilateral programme and it showcases Europe's commitment to be a partner of Tanzania in ensuring access to modern energy services in rural areas. This project "Electrification of North West Tanzania" has come about thanks to the cooperation between TANESCO, the German Ministry for Economic Cooperation and Development through the German Development Bank KfW, the French Development Agency AFD and the European Union (EU) under the EU Africa Infrastructure Trust Fund, which together will provide financial and technical support.

These joint funding projects, also called (in our jargon) "blending operations", are instruments where EU grant funding is used in a strategic way to attract and/or complement additional financing for important investments in EU partner countries. As already mentioned, in this project the grant component stands at 27.6 million euro, 20 from Germany and 7.6 million from the EU Africa Infrastructure Trust Fund, and a soft loan component of 14 million euro from AFD.

Other ongoing blending operations partially funded under the African Infrastructure Trust Fund are the (Iringa- Shinyanga) Tanzania Backbone Transmission Line (complemented by a project to facilitate support to the entire ZTK interconnection project with COMESA) and the Rusumo Falls Hydropower Project. In the pipeline we also have the Masaka – Mwanza transmission line project between Uganda and Tanzania, as well as possible support towards geothermal exploration in Tanzania.

Ladies and gentlemen

As we have heard, the project we are launching today has set for itself the goal of connecting 10,000 rural households, social institutions and small businesses in parts of Geita, Kagera and Kigoma regions. This will include using EU funds for the construction of approx. 250 km of medium- and low-voltage distribution lines, distribution systems, transformers, installation of meters and service lines and co-financing of connection costs and ready boards.

These are ambitious results, but we trust that they can be successfully achieved, building upon the competence and experience acquired and the strong interest and commitment shown by partners and stakeholders present here today.

On behalf of the European Union I would like to reassure you of our continued support, and wish TANESCO all the success in this undertaking.