TANESCO has reportedly requested more funding for the completion of the Kinyerezi 1 gas-fired powerplant implementation, as the plant is operating below its total capacity. The Kinyerezi 2 power plant willalso reportedly be online between end-2017 to beginning-2018, which aligns with our forecasts for thepower plant starting electricity generation in 2018.
The Tanzanian government has opened a tender for the 320 megawatt (MW) Somanga Fungu gas-firedpower plant, with the plant estimated to cost USD365.6mn. While we do not yet factor this plant into ourforecasts, we will include it if we see evidence of progress.
The 2.1 gigawatt (GW) Rufiji hydropower dam in the Selous Nature Reserve is also being planned forconstruction by the Tanzanian government, with the tendering process having started at the end of August2017. While the costs and start date for the project are not yet known, the planned dam is already facingenvironmental opposition as the nature reserve is a UNESCO World Heritage Site. As we await furtherevidence of progress on the proposed hydropower dam and we note the environmental significance of thesite, we are not yet including it into our forecasts. We are therefore maintaining our forecasts forhydropower generation growth in Tanzania, which we expect will remain mostly stagnant at an annualaverage level of 2.6 terawatt hours (TWh) over our 10-year forecast period.