Rural power installations in the country up by 50pc

THE Ministry of Energy and Minerals has increased the budget for rural electrification by 50 per cent, from 357bn/- in the 2015/2016 fiscal year to 534bn/- in the coming year as it struggles to ensure Tanzanians are supplied with reliable electricity. Presenting his budget estimates for the 2016/17 financial year yesterday, the minister, Professor Sospeter Muhongo, insisted that all projects under the Rural Energy Agency (REA) will be implemented as planned. He informed the House that the power access level has also gone up by four per cent. About 40 per cent of Tanzanians are now connected compared to 36 per cent that was recorded last year. For the first time, 94 per cent of the total budget of the ministry for the next financial year has been allocated for development projects. Budget estimates for the ministry in 2016/2017 fiscal year stands at 1.12 trillion/-. According to Prof Muhongo, 1.05tri/- will be channeled to fund development projects while the remaining 66.2bn/- will cater for recurrent expenditure. "Basing on section 43 (a) of 2015/2020 CCM election manifesto, which directs the government to increase power production, the ministry has allocated 98 per cent of the development project funds for the energy sector," Prof Muhongo reported. "REA is now in the process of getting a contractor who will supply power to 121 villages where the Iringa-Shinyanga Grid passes through," he added. Prof Muhongo explained that the government is going on with the implementation of electricity supply industry reform strategy and roadmap in a move aimed at transforming energy sector. He asserted that by 2019/2020, there were some power projects that are due for completion and which will greatly help increase power accessibility in the country. The projects are Singida-Arusha-Namanga (400kV), Bulyanhulu- Geita (220kV), Geita-Nyakanazi (220kV), North-East Grid (400kV) and Somanga-Kinyerezi (400Kv). The minister also noted that completion of the 542km Mtwara-Dar es Salaam gas pipeline project has, among other things, helped rein in the cost of electricity generation. The government has also earmarked some 800m/- for setting up the Liquefied Natural Gas (LNG) plant in the coming financial year. Prof Muhongo informed the House that the ministry was in the final stages of putting in place a Petroleum Upstream Regulatory Authority (PURA) to control all issues related to petroleum products. PURA, according to the minister, is set to be a full regulatory body by July. Prof Muhongo also affirmed that the government has completed establishment of Petroleum Bulk Procurement Agency (PBPA) since January. 

Tanzania's Minister for Energy and Minerals, Professor Sospeter Muhongo

The agency, among other assignments, is tasked with handling all activities that were being done by the Petroleum Importation Coordinator Limited (PICL). PICL’s key role was to manage petroleum bulk procurement system. “In 2016/2017, the agency will as well start overseeing importation of Liquefied Petroleum Gas (LPG) and Heavy Fuel Oil (HFO) through bulk procurement system. Prof Muhongo said that the government’s shares in PUMA Energy Tanzania Limited, Tanzania-Zambia Pipeline Limited, TAZAMA, and Tanzania International Petroleum Reserve (TIPER) have remained intact. The government has 50 per cent shares in PUMA Energy Tanzania Limited, 30 per cent in TAZAMA and 50 per cent in TIPER. Meanwhile, Tanzania will own the stake in the Uganda refinery being part of an agreement for all East African countries to own shares in the plant. Prof Muhongo said that Uganda agreed that every EAC member state will own eight per cent (approximately 335bn/-) of shares in the project in line with strategies of integrating the regional economies. On the 1,443km Uganda-Tanga Crude Oil Pipeline Project, Prof Muhongo said that talks on the implementation of the multi-billion shillings project have started. Parties involved in these talks are the governments of Tanzania and Uganda, TOTAL (France), CNOOC (China) and Tullow (UK). The minister also affirmed that the government has intensified war against smuggling of minerals. For instance, he said, such efforts have helped the ministry to seize minerals worth 3.3bn/- in 2015. Meanwhile, the Opposition Camp has challenged the government to ensure that it properly manages minerals, which the country is endowed with for the benefit of all Tanzanians. Presenting the opposition’s views, Shadow Energy and Minerals Minister John Mnyika, said the country was not benefiting much from its natural resources due to lack of proper management and dubious deals the government was inking with foreign investors. Mr Mnyika also wanted the government to honour resolutions reached by the National Assembly relating to the controversial Tegeta escrow account. “We are saddened that some of the resolutions are yet to be implemented. TANESCO are still paying a lot of money to IPTL... we need the government to act now and respect the resolutions,” he demanded. The Chairman of the Energy and Minerals Committee, Mr Dotto Biteko, advised the government to chart out strategic plans that would help the country in proper management of natural gas resource.

TCCIA mourns over sugar predicament

AS sugar scarcity continues to take its toll on consumers in the country, Tanzania Chambers of Commerce, Industry and Agriculture (TCCIA) in Kilimanjaro Region has called for patriotism among traders and agents as well as fair competition in the business. TCCIA Regional Chief Executive Officer, Mr Boniface Mariki said in Moshi on Thursday this week that the situation was alarming because consumers suffer and called for whoever is hoarding sugar to do away with that. They however said they doubted statistics presented to the government on sugar demand. Mr Mariki said it was possible that demand was higher than figures presented to the government and added it might also be possible that all the amount hoarded would not be enough to cover the demand. “It is true many of our members say they do not have sugar and are not ready to buy and sell at huge price because it would be detrimental to their clients. But it is possible some are hoarding it; if so they do not even deserve to be our members. Everyone should shy away from desire to get super profit and be considerate of their customers, be patriotic, think of the nation and its people,” said Mr Mariki. The CEO noted that a system that could monitor the situation all the year round should be put in place, establish how much sugar is needed, how much is produced and the distribution system be traceable and transparent, so as to avoid the situation the country is in as of now. “We need proper and correct data; we doubt if those presented to the government are correct, we feel the demand is much than what industries in the country produce. It is good to restrain importation of some goods, not only sugar, so as to protect our industries, but that should be done in accordance with fair competition, as some industries may become complacent and run business as usual,” said the CEO. He said they were concerned that the matter was turning political, because after the government restrained importation of sugar, unscrupulous businesspeople bought huge amount of sugar and hoarded it. He said there were no explanations why the price should go up to 3,000/- per kilogramme in Kilimanjaro Region. “This matter is very sensitive, we compare sugar needs to fuel, it has so many customers at different levels; if there was already in place a regulation system, it would not take so much time for regional and district security and defence committees to work on the matter,” he said. Mr Mariki warned that setting up a new authority to regulate sugar business could prove costly to consumers as it is the case with Energy and Water Utilities Regulatory Authority (EWURA), because there would be extra charges. He was of the opinion that the matter should be regulated by existing government machinery. Kilimanjaro region is experiencing scarcity of the commodity, and the price has shot up from around 1,800/- to more or less 3,000/- per kilogram. President John Magufuli has declared war on traders and agents who hoard sugar and state organs have since seized thousands of tonnes of sugar hoarded in different regions.

The alarming maize prices in Rukwa region

THE price of maize in Rukwa Region has sharply decreased during this harvesting season due to lack of reliable markets. Interviewed farmers in the most growing areas in the region have admitted that a 100-kilogramme bag of maize is now sold between 20,000/- to 25,000/- compared to 60,000/- in the past season. The survey indicates that in rural areas farmers are selling the crop at throw-away prices to the middlemen. Some middlemen interviewed said they started buying maize directly from farmers in villages ahead of the National Food Reserve Agency - Sumbwanga Zone, which normally purchases crops starting July. 

A maize farm with maize crop planted in contour sampling

Several farmers said they are forced to sell their crop at throw-away prices to meet basic needs. According to the Acting National Food Reserve Agency – Sumbawanga Zone Manager, Chacha Range, this season maize buying his organisation plans to purchase 25,000 tons compared to 60,000 tons bought in the past season. Meanwhile, the retail price of ‘Kigoma sardines’ continues to increase in Sumbawanga Town due to scarcity. The sardines are now being sold at between 20,000/- to 22,000/- per kilogramme compared to 8,000/- five months ago.