Fuel tariff would light up rural Tanzania

An oil refinery in western Canada. A fuel tariff is has been proposed to help provide power for rural Tanzania. Photo: Daniel Hayduk

An oil refinery in western Canada. A fuel tariff of 100 Tsh/litre has been proposed to light up every village in rural Tanzania. Photo: Daniel Hayduk

A proposal to introduce a levy of 100 shillings (6 cents USD) per litre of fuel is expected to be brought before Parliament on Thursday, February 5.

The tariff has been proposed by Deputy Minister of Energy and Mines Charles Mwijage to fund the cash-strapped Rural Energy Agency (REA) in it’s quest to bring electricity to rural Tanzania.

Mwijage hopes to to free up 120 billion Shillings ($67 million USD) to aid the REA in lighting up every village in Tanzania.

“This issue is in your hands,” Mwijage told Members of Parliament, “in just 3 months we’ll have 120 billion Shillings to help take electricity to villages.”

He went on to say that he believes all ongoing projects could be completed by June 2015.

“Electricity will be everywhere in your constituents’ villages.”

Others in Parliament are skeptical of Tanesco’s ability and willingness to deliver a viable product on time and urge the government to be cautious and disciplined in its funding.

The government already recently set aside 16.7 billion Shillings ($9.5 million USD) for rural electrification projects in Morogoro.

The second phase of REA projects is set to end in June, however according to The Guardian, the REA has not yet finalized contracts with companies to complete the work.


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