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Bunge-Lenye-Meno-A-Parliament-with-Teeth-for-Tanzania-LAXNNAJ547

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The Richmond Power Supply Contract, Key Dates

2002-2005

• 2002-2005: Poor rains reduce hydroelectric generating capacity, power

shortages.

• December 2005: Electricity parastatal TANESCO seeks government

approval to lease emergency generating capacity for one year.

2006

• January 11th 2006: CDC Globeleq, holding company of Tanzanian/

Canadian joint venture SONGAS, submits proposal to supply gas turbines

with capacity of MW74.

• January 13th: TANESCO tender board endorses bid from CDC Globeleq.

• January 30th: A government evaluation committee advises TANESCO to

negotiate a new longer-term contract with CDC Globeleq spanning 3-5 years.

• February 10th: Cabinet rejects plan for longer lease and instructs CDC

Globeleq either to sell the turbines to TANESCO or lease them for a shorter

period. The Ministry of Energy and Minerals cancels plans to lease the

turbines.

• February 23rd: Cabinet orders ‘fast-track’ leasing of gas turbines under

the Public Procurement Act of 2004.

• February 27th: TANESCO issues revised tender for emergency power

production, without approval from Public Procurement Regulation Authority

(PPRA).

• March 20th: Eight companies submit tender documents.

• March 28th: Government evaluation committee finds all eight bidders failed

to meet tender conditions, advises TANESCO to re-issue tender.

• April 1st: Minister of energy and minerals, Dr Ibrahim Msabaha, instructs

TANESCO to re-summon all eight bidders to re-negotiate tender.

• June 8th-16th: A joint negotiating team (Ministry of Energy and Minerals,

Ministry of Finance, Attorney General’s Office, Bank of Tanzania and

TANESCO) meets Richmond Development Company LLC (RDC).

• June 19th: Dr Msabaha writes to the prime minister, Edward Lowassa,

recommending RDC for a two-year electricity generating contract.

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