Prof Sospeter Muhongo, Minister of Energy and Minerals
Debate over the Ministry of Energy and Mineral estimates is to resume today after it was put on hold yesterday following gas production violence in Mtwara that erupted as the Minister tabled his budget estimates.
At least 90 percent of the Ministry of Energy and Mineral’s financial estimates for fiscal year 2013/2014 will be injected into development projects aimed at the provision of reliable energy supply.
Presenting his Ministry’s budget estimates yesterday in Dodoma, Prof Sospeter Muhongo, Minister of Energy and Minerals, requested the House to approve the 1.102trn/- budget to be used for both recurrent as well as development expenditures.
“Out of the estimates, 992.3bn/- is allocated for development projects, of this, 558.13bn/- is to be domestically sourced and the rest is donor dependant,” elaborated the Minister who went to clarify that, 110.3bn/- will be used for recurrent expenditure, out of which 14.6bn/- is for salaries and the rest for other Charges (OC).
Detailing on the government’s efforts to improve the energy sector, he reported that the government has finalized all necessary legal proceedings to reacquire the Kiwira Coal Mining which is currently in the possession of TanPower Resources Ltd.
“We are done with legal procedures to repossess Kiwira Coal Mining and the government, through the State Mining Corporation (Stamico) is in negotiations China based , China National Plant Import and Exporting Corporation Ltd (Complant) to take over…,” he revealed asserting that, once up and running the mine has the capacity to generate 200MW.
The Minister named other projects as, the construction of the Mtwara-Dar es Salaam gas pipeline that is hoped to benefit all communities along its course especially improving infrastructure for the distribution and transmission of electricity along with related socio-economic benefits.
According to Prof Muhongo, the government is expected to contribute 63bn/- in 2013/2014 fiscal year for the Mtwara – Dar es Salaam gas pipeline construction project that is to implemented thanks to a major loan from China. The long term development loan is to be repaid within 20 years at an interest rate of 1.5 percent with a seven-year grace period.
Also, the government has set aside 208bn/- for the construction of an electricity power plant and substation at Kinyerezi 1 and another 109bn/- has been allocated for the construction of yet another power plant and substation at the Kinyerezi 2 substation.
“The two projects will generate a total of 390 MW of electricity and the government is soon to start negotiations with private partners for the set up of Kinyerezi 3 and Kinyerezi 4 projects,” the minister said.
He clarified that 150 MW is expected from Kinyerezi 1 and 240 MW from Kinyerezi 2.
At least 150bn/- has been set aside to improve energy provision in some 13 districts, listed here. Buhigwe, Busega, Chemba, Nyasa, Itilima, Kakonko, Kalambo, Kyerwa, Mkalamba, Mlele, Momba, Nanyumbu and Uvinza.
Revealing planned mineral production projects to be put in place this year, the Minister asserted the following.
“This year, we are going to open up new mines … the Pandahil in Chunya Mbeya, Kabanga Nickel in Kabanga, Ngara, and the Magambazi Projet in Kilindi, Tanga, another Nickel project in Ntaka, Nachingwea and a Gold project in Sengerema.”
“The ministry is expecting to employ at least 589 staff to meet the current shortage in the Ministry as well as institutions working under the Ministry,” said the Minister in respect to creating job opportunities within his Ministry. source the Guardin
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