Tanzania Electric Supply Company Limited (TANESCO) has signed an agreement with Tanga Cement Company Limited (TCCL) to supply 40MW of power to the cement company
According to the agreement, TANESCO will supply power through TCCL’s substation at Pongwe in Tanga. The supply of power is expected to improve the production capacity of cement at TCCL.
The agreement also provides guidelines on communicating the occurence of power outages to the two parties, in an attempt to minimise production disruptions at TCCL.
Reinhardt Swart, managing director of TCCL, said that the move aims to revamp production capacity while expanding the firm’s business across Tanzania. ”Cement plants use a lot of power from TANESCO, so we have decided to construct our own sub-station to access power directly. This would reduce unnecessary interruptions during production and operation.”
Decklan Mhaiki, deputy managing director of investments at TANESCO, added that since TCCL is one of their oldest and most prolific customers, the company decided to provide 40MW of power to ensure the uninterrupted production of cement.
The deal was approved and verified by the Energy and Water Utilities Regulators Authority, added Mhaiki.
Apart from Tanzania, TCCL is expanding its presence across East Africa with the company exporting its flagship brand — Simba Cement — to Uganda and other products to DR Congo, Kenya and Rwanda, Swart stated.
