Upprustning Hale vattenkr

During the reporting period TANESCO with the support of SWECO managed to procure two companies for the rehabilitation works for Lot 1 and 2 in favour of M/s Sinohydro Corporation Ltd and M/s Dangfang Electric International Corporation respectively at a contract price of USD 1,097,210.20, EURO 934,657.71 and TZS 1,267,339,083.64 VAT inclusive (for Lot 1) and USD 16,413,949.00 VAT inclusive for Lot 2. The contracts for Lot 1 and Lot 2 (Lot 1 for the new escape tunnel works and Lot 2 for the rehabilitation works of the power plant electromechanical equipment) were signed on 16 June 2022 and kickoff meetings were held 12-15 July 2022 at Hale HPP site. The project is now in the implementation phase Commencement Date was 30 August 2022, for both contracts Lot 1 and Lot 2. Contract duration three years for LOT 1, one year for implementation and plus two years (2) warant for Defect Liability Period. Advance payment within 45 days after contract signing. Payment during contract implementation 2022/23 within fifty six (56) days after receipt of invoice. Payment after the expiry dates of the Defects Liability Periods 24 Months after taking Over Certificates. Contract duration five years (5) for LOT 2, whereby three years (3yrs) for implementation, and plus two years (2rs) for Defect Liability Period. Advance payment within 45 days after contract signing. Payment during contract implementation within fifty six (56) days after receipt of invoice. Payment after the expiry dates of the Defects Liability Periods 24 Months after taking Over Certificates. Lot 1 Contractor has presented documents for review on Basic Design and Detail Design of Escape Tunnel and Access Road. Lot 2 Contractor started producing Basic Design documents for electro mechanical works. The contractors were advised to speed up to correct the comments in order to finish the project in time to avoid delay. Lot 1 contractor completed establishment of the site. It was the same for Lot 2 contractor completed establishment of the site during the reporting period. Some machinery and staff for boths lots are available at site and we have insisted to comply by making sure the machinery and staff to be available in time to avoid delay in implementation of the project. Financial Summary: The Tanesco has paid Advance Payment to both contractors and no further invoicing has yet occurred. Advance payment paid to Lot 1 Sinohydro USD 109,721.00, EUR 93,465.00, TZS126,733,908.00. Advance payment paid to Lot 2 Dongfang USD 2,462,092.35. REMARKS: The Embassy provided a no objection on the procurement of the contractor and on the contracts signing. Normally Embassy follow or monitor the fund and implementation through the Annual Review Meetings, Audit Report by Controller and Auditor General (CAG) and field visits to appreciate the construction of the infrastructure.

The main objective of the project is to provide renewable energy for poverty reduction. The specific objective is to ensure another 30-40 years power supply from the Hale hydropower station to the national grid, which includes improved overall operational and safety aspects of the hydropower plant. Hale power station is owned and operated by the national utility company Tanzania Electric Supply Company, Tanesco.