By the Respondents Reporter
SONGEA, Tanzania, Oct. 23 — Tanzania's state power utility TANESCO is in the final stages of negotiations with Chinese-backed investor Hongwang Tanzania Holdings (HWTZ) over a proposed 200-megawatt electricity arrangement to support the development of a power project in Ruvuma Region expected to generate more than 2,000 MW.
Energy Minister Juma Zuberi Homera urged TANESCO to expedite the negotiations and conclude an agreement with the investor, saying the project could expand electricity generation, support industrial production and create jobs.
Homera made the remarks on Friday during a visit to an industrial park in Ruvuma, where HWTZ is planning investments in electricity generation, aluminium production and steel manufacturing.
The proposed power project, estimated to cost 7.8 trillion Tanzanian shillings, would use coal and solar energy and have a generation capacity exceeding 2,000 MW, according to the minister.
“We have been informed that this project will be the first of its kind in Africa. I urge TANESCO to accelerate negotiations with the investor to facilitate the 200 MW arrangement and enable construction of the power project, which is expected to generate more than 2,000 MW,” Homera said.
He said the investment could stimulate productive activities and create economic opportunities for residents of Ruvuma and neighbouring regions.
TANESCO deputy managing director for planning, research and investment Amos Kaihula, representing the utility's managing director, said negotiations were at an advanced stage.
He said the proposed agreement would enable the investor to proceed with preparations for construction, with HWTZ expected to sell part of the electricity generated by the project to TANESCO.
Ruvuma Regional Commissioner Ahmed Abbas welcomed the investment, saying the government had created conditions intended to attract large-scale industrial projects.
He said the planned industrial development, including the power plant, was expected to create more than 5,000 jobs for young people and expand economic activity in the region.
Abbas added that increased electricity generation and industrial production could broaden economic opportunities and raise government revenue.
HWTZ is part of China's HWHG group. The company's published project information describes plans for a coal-fired power plant complemented by solar photovoltaic installations, with surplus electricity intended for connection to Tanzania's national grid.
Tanzania has recently expanded its electricity generation capacity through major investments, including the 2,115 MW Julius Nyerere Hydropower Project. The proposed Ruvuma investment would add to the country's efforts to support industrial growth and strengthen energy supply.
However, the HWTZ project remains at the negotiation and development stage, with the proposed TANESCO agreement yet to be signed, according to officials.