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Mnazi Bay power ready in two months
2006-07-17 09:04:39
By Michael Uledi, Mtwara
Prime Minister Edward Lowassa said at the weekend that the government will finance Mnazi Bay gas project in Mtwara Region, with a 17bn/- bond to make the power produced affordable for the poor in the southern regions.
At the same time, the Canadian investor, Artumas Energy working on the project has promised it would be able to start generating electricity within two months.
’’The bond will ensure that electricity generated from the project benefits the poor majority, with costs estimated to be almost equal to the tariffs charged in other regions,’’the Premier told Mtwara residents at Mikindani shortly after inspecting the project.
’’The government will issue the bond to open the doors and encourage other investors to put up new investments in Lindi and Mtwara. Availability of power will attract new projects in the southern regions,’’ he said.
Lowassa said the project was vital in stimulating development activities in Mtwara and Lindi regions.
’’It will ultimately contribute substantially in abating poverty and change peoples’ lives,’’ he said.
He said negotiations between the government and Artumas Energy, on the finance were over and a Memorandum of Understanding (MoU) would soon be signed.
Earlier, Artumas Energy President Steven Masson said his company was finalizing installation of the gas pipelines.
He said the plant would generate electricity within two months.
’’We have spent USD 65m on this project so far. The result of our efforts to date should instill confidence that Artumas can fulfill its obligation, under all of the project agreements and deliver a fully integrated power system to the regions of Mtwara and Lindi,’’ Masson said.
The impact of the project will be far reaching for the villages and communities making up the regions and the district of Lindi and Mtwara.
’’The magnificent effect of providing access to power to improve standards of living, health, education and job creation cannot be overstated,’’ he said.
Currently the number of people who are accessing electricity in the two regions is only 4 per cent, he said.
Priority must be in attracting industries which will create jobs and give the people of the regions dignity and empowerment, he said.
’’Artumas remains focused to ensure the markets are brought to these regions. I am very proud of the initiatives taken by Artumas staff to develop sustainable farm at Mchepa, the secondary school hostel and canteen in Msimbati, the resettlement of 11 families from the well drilling site on the peninsula and future community based scheme across both regions,’’ he said.
Masson said his company has already secured initial funds of almost USD 1m for corporate social responsibility and social development initiative programmes that will be stimulus for social and economical development in the two regions.
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