Regional Large Scale Project Showcase:

From Development Plans to On-Stream Successes; a case of Somanga 250MW CCGT Power Plant - Tanzania

Presented By: Decklan P. Mhaiki Deputy Managing Director Investments TANESCO

• Introduction • Current Status • Available Energy Resources • ESI Reforms Road Map • Future Grid Map • Somanga CCGT 250MW Power Plant

– Background – Location – Characteristics – Process – Timelines – Project Features

• Future PPP Projects • Conclusions

Contents

Population: 47.422Mil (2014 NBS est.)

Population Growth: 2.5%

Area : 945, 203 km2

GDP: 998.1USD (World Bank, 2014)

Electricity Demand Grown: 9% p.a (BRN, 2013)

Electricity Consumption: 131 kWh/Person (TANESCO, 2014)

Introduction - Tanzania

HYDRO, 561.84MW, 45%

GAS, 441MW, 35.3%

OIL, 223.4MW, 19.7%

Hydro Gas Oil

• Total Installed Capacity (Grid) – 1226.24MW

• Off-grid stations - 73.77MW (largely Oil)

Current Status - Generation

45%

20.2%

15.1%

5.7%

14.0%

Installed Capacity By Fuel Type / Ownership

HYDRO-TANESCO GAS-TANESCO GAS-IPP

LIQUID FUEL-TANESCO LIQUID FUEL-IPPs/EEP

Current Status - Generation

The System:

50Hz, ±2.5%,

Max. Demand:

934.62MW (Dec. 2014)

Transmission:

400kV – Under construction

220kV (2732.4km)

132kV (1538.5km)

66kV (546km)

Distribution:

33kV (14,652km)

11kV (5507km)

Customers: 1,501,162 (June, 2015)

Current Status - System

S/NO ENERGY RESOURCE POTENTIAL DEVELOPED TO

POWER

1 Gas 55Tcf 441MW

2 Hydro: Various sites 4.7GW 562MW

3 Geothermal: 58 sites 5,000MW None

4 Coal 1.9 billion tons None

5 Uranium Oxide 24,550 tons None

6 Wind: 7 sites Average wind speed 5 – 8m/s None

7 Biomass: wood fuel and agricultural waste

500MW 35MW

8 Solar: Several sites

Average daily solar insolation 4.6/kWh/m2

About 4MW

9 Tidal Under study None

Available Energy Resources

• Electricity Access rate: 38% (June, 2015)

• Connectivity level: 28.7% Av. (June, 2015)

8

Electricity Supply Industry Reforms Road Map 2014-2025

Future Grid map by 2035

Somanga 250MW CCGT Power Plant

Background

• The project is earmarked in the national 2012 Power System Master Plan. It is planned to add 250MW in the national grid.

• The proposed power plant will utilize local natural gas from the Mtwara – Dar es Salaam main pipeline.

Background

• In the spirit of efficient utilization of local energy resources, the proposed power plant will utilize a Combined Cycle Gas Turbine (CCGT) technology.

• The project was chosen to be a pilot project to be implemented under Public Private Partnership (PPP) arrangement. All preparatory works are financed by the World Bank.

Location

• The Pre-feasibility study has indicated that the proposed plant has to be relocated from Mkuranga area, Pwani District to Somanga, in Kilwa District. The Kilwa site is near to the sea, gas infrastructure, Dar – Mtwara road and proposed substation.

Characteristics

• Plant Cooling Water will be

sourced from the sea, with a once-through cooling method.

• The generated power will be evacuated through a 400kV substation to the proposed main 400kV Mtwara – Kinyerezi Transmission line.

Intention

The project is planned to be implemented under PPP arrangement with an intention to:

• expedite project implementation; • quality Improvement; • access to new sources of private

capital; and • allocate risks to the party (private

party) best able to manage the risk.

Characteristics

Process

For the competitive process, prior to start of EPC implementation works will follow the following route .

Timelines

ACTIVITY DURATION (Months)

START END

PFS 5 Oct. 2014 Feb. 2015

EOI (TA) 6 Feb. 2014 Jul. 2014

RFP (TA) 12 Aug. 2014 Aug. 2015

TRANSACTIONS (+ Financial Close) 18 Sept. 2015 Feb. 2017

EPC (Commissioning +COD ) 30 Mar. 2017 Aug. 2019

Project Features

Project Green field

Technology CCGT

Capacity 300MW

Source of Cooling Water Sea Water

Operation Base load

Location Kilwa District (about 245km south of Dar)

Status Under contracting of Transaction Advisor

Implementation PPP

Expected Commission date August 2019

Future PPP Power Projects

Project Size Technology/Fuel Location

Thermal Generation Projects

Ngaka Coal Project 400MW Steam - Coal Mbinga

Solar 50MW Solar PV (Shinyanga/Dodoma)

Kinyerezi IV 430MW CCGT Dar es Salaam

Hydro Generation Projects

Rumakali 520MW Hydro Njombe

Ruhudji 358MW Hydro Njombe

Conclusions

1. Tanzania has decided to develop IPP power projects using competitive methods

2. This is the first project to be developed in the competitive

mode

3. Interested Investors are invited to participate in the

process

4. More projects under way for Hydro, Coal, Gas, Solar, etc

Thank You for Listening!