The process of restructuring the Tanzania Electric Company (Tanesco) has begun.
Energy and Minerals minister Sospeter Muhongo told a conference on powering Africa in the city yesterday that Tanesco now had a company on procurement and distribution of poles and the other one for generation of thermal power.
“We are not just declaring political statements on this issue. We are committed to ensuring that Tanesco is restructured to pave the way for its efficient management,” said Prof Muhongo.
He said a clear picture on restructuring Tanesco for attracting more private investments in the energy sector would be known in June this year after finalising all plans on how to run the firm’s Sh4 trillion worth of assets.
The minister listed other components of the Tanesco reform as ensuring that it collects all debts, fights corruption, improves efficiency, decentralises functions so that only few major functions are done at the head office and the last one being the demarcation of three major roles: power generation, transmission and distribution.
Tanesco managing director Felchesmi Mramba told the same conference on Thursday that the parastatal was prepared for reform to ensure that investments were done through private-public partnerships investment in the energy sector.
He said a proposal had been submitted to the government on how to restructure Tanesco.
However, as of yesterday efforts to contact Mr Mramba to clarify on the formation of two Tanesco outfits was futile.
During the conference which was attended by at least 200 delegates who are potential foreign and local investors in the energy sector, a number of international investors called upon the government to continue improving the business environment.
One of them, Mr Mohamed Tajdin, general manager of Shapoorji Pallonji based in Kenya, said the process of engaging possible investors by the government should not be bureaucratic.