IPTL mulls selling its power plant

THE Independent Power Tanzania Limited (IPTL) contemplates selling its fuel-powered 100-megawatt plant which has been idle for the past six years at Tegeta, in Dar es Salaam.

IPTL’s Director James Yara said the company would be ready to sell the plant if the government considers buying it to generate power during emergencies, especially to address current reduced hydropower production as a result of lowering water levels in Kidatu, Kihansi, Pangani and Hale dams.

“We are ready to sell the plant at a throwaway price. This would help to add more electricity to the national grid; we are ready to sit with the government and we hope all will be well,” Mr Yara said.

Elaborating, he noted that there is also the possibility of transforming the power generator from using fuel to natural gas, should the buyer wish to reduce operating costs.

When the ‘Daily News’ contacted Permanent Secretary in the Energy Ministry, Eng Felchesmi Mramba, for comment over the company’s consideration to sell the plant, he replied that he was not in a position to comment.

However, during a telephone interview on Thursday last week, Eng Mramba told the Daily News that if the owners decide to change the plant into using the natural gas for producing electricity, the government’s doors are opened for discussion before considering partnership.

Elaborating, he added that the government would be cautious on technical aspect of the machinery considering that it has not been operating for six years now.

“We would also look at the historical matter, particularly regarding agreements surrounding the IPTL, before thinking entering the partnership,” he stated.

In 2021, the Court of Appeal placed back the troubled IPTL Company into the management of Mechmar Corporation (Malaysia) Berhard from Malaysia and VIP Engineering and Marketing Limited from Tanzania.

This followed a decision made by Justices Augustine Mwarija, Gerald Ndika and Mary Levira to nullify consequential orders that had been granted by the High Court to handle all IPTL affairs, including the power plant to Pan Africa Power Solutions Tanzania Limited (PAP).

“For avoidance of doubt, the High Court’s order of

5th September, 2013 remains to the effect that “the petition was marked

withdrawn with no order as to costs.” Given the circumstances of this matter,

we make no order as to costs,” they said in the ruling dated July 29, 2021.

The justices noted after allowing an application for revision lodged by Mechmar that the High Court had granted such orders after marking withdrawn a petition filed by VIP Company for winding up of IPTL on alleged mismanagement of the company by majority shareholder.

Mr Yara further said that  it was undisputed that the original shareholders in IPTL were Mechmar and VIP Engineering and Marketing Limited (VIP).

However, due to change of circumstances, by 2014 the shareholders in IPTL were Pan Africa Power Solutions (Tanzania) Limited (PAP) and VIP Engineering and Marketing Limited (VIP).