Biteko stresses PPP

GEITA: DEPUTY Prime Minister and Energy Minister, Dr Doto Biteko, on Tuesday launched a new power substation at Geita Gold Mine.

This will switch the mine from costly diesel generators to reliable electricity from the national grid, cutting operational costs for the country’s top taxpayer.

Dr Biteko said that the construction of the facility is a true symbol of the unity and cooperation between the government and the private sector, as the project involved the construction of a 33 kV power line built by Tanzania Electric Supply Company (TANESCO) at a cost of 8.04bn/-, while GGML built the substation at a cost of 24 million US dollars.

The 34 megawatts substation allows GGML to start using electricity from the national grid for its operations instead of oil-generated electricity thereby reducing operational costs.

Dr. Biteko emphasised that this switch will lower operational costs, boost government revenue, create jobs and enable GGML to expand its operations.

He explained that GGML was spending 130bn/- per month on operational costs, with 13.4bn/- of the amount being spent for diesel-powered electricity, which affected its contributions to the government.

“The operation of this substation reduces the mine’s operational costs, increases government revenue, creates more jobs and allows GGML to expand its activities,” he said.

Dr Biteko commended the company for starting to use electricity from the national grid, which reduces operational costs. He also cautioned that the reduction in costs should benefit employees by improving their welfare.

Dr Biteko emphasised the importance of cooperation between the government and the private sector, highlighting the benefits the country is gaining from the collaboration.

He instructed officials from the Ministry of Energy, TANESCO and other government institutions to pay attention to the private sector due to its benefits, including being a major taxpayer and its contribution to job creation in the country.

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He explained that the significant amount of electricity currently being generated ensures reliable supply for both citizens and large consumers like GGML, emphasising that the results are reflection of President Dr Samia Suluhu Hassan’s commitment to support the private sector.

For his part, Anglo Gold Ashanti-Tanzania Vice-President Simon Shayo expressed gratitude to the government for creating a favourable business environment and providing robust electricity infrastructure that enables them to conduct their business efficiently.

“This project is crucial for GGML as it enables the company to access electricity from the national grid and reduce the use of diesel-powered electricity, leading to a 92 per cent reduction in costs.

Meanwhile the government has assured the public that the country is no longer experiencing power rationing and requested for more time to adequately address the issue of power outages.

Speaking at a public rally held in Katoro, Geita, after being given a chance by Chama Cha Mapinduzi (CCM)Secretary General Dr Emmanuel Nchimbi, Deputy Prime Minister and Minister for Energy Dr Doto Biteko said the power rationing that occurred in February this year has ended.

Dr Biteko made the assurance after Dr Nchimbi received 108 complaints from citizens, of which 11 complaints were related to the energy sector, such as power outages.

“Currently, Tanzania has more electricity than any other East African Community (EAC) country, there is no longer any power rationing in the country,” he said.

Dr Biteko added that the government should be given time to improve the infrastructure for transmitting electricity from one place to another.

The ministry’s current strategy is to connect all regions that are not yet on the national grid, including Kagera, which will receive electricity through four lines from Nyakanazi, Tabora, Katavi and via solar power.

He also mentioned another strategy to supply electricity to various public institutions, including schools and in mines such as GGM, which will replace generators with a megawatt power supply.