Tanzania Seals U.S.$123 Million Wind Energy Project Deal

The wind farm, in which the government will own 51 per cent shares, will cost $123 million (about TSh172.2 billion). Speaking during a visit to the site in the region where the project would be built, the deputy minister for Industry and Trade, Mr Lazaro Nyalandu, said the installation of the wind generators would start early next year and the project will take 15 months before it starts generating the first 50MW for the national grid.

"I am happy that the deal has finally been sealed and in the next 15 months we will have 50 megawatts of electricity on the national grid. This will come as a big relief to the country," said the deputy minister at the site.

Mr Nyalandu said NDC has already signed several power project deals, including the Mchumchuma and Liganga, which would produce power from coal.

"The Mchuchuma wind turbines project will take longer to implement because it is a big undertaking, but upon completion it will produce about 1,800 megawatts of electricity," he said.

Commenting on the wind power project, he said it was beneficial as it would produce power at very low cost.

"There is a potential of reducing energy costs from the project," said Mr Nyalandu. He added that in Europe there is use wind with maximum speed of five metres per second.

"Here we can get as high as 21 metres per second, which is just great for us," said Mr Nyalandu.

The managing director of Power Pool East Africa, Mr Machwa Kagoswe, said the project was expected to take off in February next year.

He added that the company had already ordered new equipment because the available ones would not cope with the high speed wind in the area.

He said wind power was the quickest way of generating electricity to boost the national grid, since other types of power projects take too long to accomplish.