H.E. Jakaya Mrisho Kikwete, President of the United Republic of TanzaniaHon. Mr Nazir Karamagi, Minister of Energy and Minerals Members of Parliament, Regional CommissionerDistrict Commissioner and Officials Chair of the TANESCO Board, Ambassador KasauraManagement of TANESCOTANESCO StaffCostech Management & staffInvited GuestsLadies and Gentlemen
First of all I am very honoured to be invited to celebrate the completion of the Serengeti Rural Electrification Project and I would like to thank the host and organizers for the arrangements and not least for making it possible for me to participate just a couple of weeks before the end of my four year tour of duty in Tanzania. It’s an honour and a privilege as I have closely and with great interest particularly followed the developments in the Energy sector of Tanzania during the last few years.
I would like to congratulate the Government of Tanzania, TANESCO and all those who have actively contributed in the realization of the grid extension and distribution to Serengeti. There are few occasions that are so encouraging for anyone in the development field as witnessing the completion of a successfully implemented project. The Swedish Government is pleased to be associated with this project that is recognised to be of significant importance for the development of rural areas and reduction of poverty.
Swedish engagement and cooperation in the Serengeti district and Sweden has a history of more than 15 years. It includes the HESAWA Health through Sanitation and Water Programme and the District Development Programme. The rural electrification project has evolved from this cooperation. This is the first Swedish funded rural electrification project to be completed out of five that are now under implementation. I am convinced that this project will bring evidence that access to electricity is key to a positive economic development and to improving the living conditions for rural people.
Rural electrification is of special interest for Sweden in its support to Tanzania’s own efforts to eradicate poverty. 80% of the population in Tanzania live in rural areas, but their consumption of electricity represents only 2% of the total. People in rural areas are today using energy sources at high costs both in monetary and environmental terms. Once rural areas have access to electricity its potentials can be developed; be it in agriculture, agro processing or other activities. At the same time access to electricity will make deliveries of social services easier.
Up to date Sweden has provided funds for five Rural Electrification Projects that are in different stages of implementation (districts of Serengeti, Urambo, Makambako & Njombe, Ukerewe and Simanjiro) and another three projects are under discussion (districts around Makambako-Songea transmission line, Bukombe district and some areas in Kagera region).
Rural electrification comes at a high cost in a country like Tanzania, where large areas are thinly populated and with weak purchasing power. It is therefore difficult to expand the Power grid and provide connections on a strict commercial basis in rural areas. Some sort of Government subsidy is in most cases needed and the setting up of the Rural Energy Agency and the Rural Energy Fund will be instrumental in this and in intensifying rural electrification in Tanzania. Sweden will continue providing support to Rural Electrification through these institutions.
The Serengeti rural electrification project is the first of its type that includes optical fibre. I would like to congratulate Costech for having developed the services of the fibre cable together with TANESCO. Access to information is key and Internet will provide unlimited opportunities to access and share information at low cost. Internet and mobile telecommunication is developing fast and a nation wide fibre optic cable network will revolutionize communication in Tanzania.
I would like to take you to Sweden for a while. My mother was borne in 1921 in a rural area in the South of Sweden and she used to tell me about the day in the early 1930s when the house of her parents or my grand parents got electricity. It was a big day, she told me. The most remarkable thing was that from that day on, she could do her homework even after dark and those familiar with Sweden knows what that means. Sweden has gone through a period of rapid development and change during the last 100 years. Hydro Power Development, expansion of the power grid and connecting house holds and small industries in large numbers, contributed significantly to the economic development in Sweden. Efficient power generation, transmission and distribution managed by an effective and cost efficient utility is what was needed. If this was possible in Sweden, there is no reason why it should not be possible in Tanzania. There are certainly challenges as we have witnessed, but I am convinced that if Tanesco can implement its financial recovery plan and long term investment plan with strategic support from the Government, Development Partners and Financial Institutions, Tanzania will be going in the right direction. The potential for power generation is definitely there not only to cover the needs of Tanzania but also to export to meet the ever increasing demand in countries in the region e.g.South Africa and Kenya.
Let me conclude by once again congratulating the Government of Tanzania and TANESCO for the successful completion of the rural electrification project in Serengeti. We are convinced that TANESCO is doing a good job in connecting everyone knocking on the door for electrification and that the Government of Tanzania will continue to enable TANESCO in doing this in the rural areas. I would like to wish Management and staff of TANESCO every success in their very important endeavours.
Thank you for your attention
Asanteni sana