At the same time a Chinese company was chosen to build the project, we can just hope that they will not use Chinese windmills as they are know to break down regularly and be hard to fix. If you should travel to China, you will see more than half it’s windmills are on a standstill after a few years of production,while windmills from for example Vestas, Siemens, GE is projected to run at least 20 to 25 years
Singida wind power project has taken a new twist after the Parliamentary Committee for Economic Affairs, Industry and Trade said it has stopped.
But the Minister for Finance Saada Mkuya said the project was on, even after the National Development Cooperation (NDC) made similar allegations.
Both the committee chairman Luhaga Mpina and NDC Chairman Chrisant Mzindakaya accused the minister of sabotage to local investors.
According to Mpina the committee has documents showing the minister has ‘delisted’ the project and proposed a new one located in Singida to generate up to 300MW, starting with 50MW.
To cost $136 million (Sh298056.06bn), the 50MW is a loan from the Exim Bank in China.
The shareholders are the National Development Cooperation (NDC) (60 per cent), Tanzania Electricity Company (TANESCO) (20 per cent) and Power Pool East Africa Ltd holding the rest of the shares.
Mpina said Ministry of Finance has requested a loan $ 136 from Exim Bank of China to implement the project, and loan was accepted.
The Committee claimed the Minister for Finance wrote a letter to Exim Bank stating that the project cannot be implemented because there is no project area for the project.
However, Mzindakaya said the wind power project has been allocated for establishment of 1,450 hectares to set up a wind farm and that feasibility study was complete and the villagers had been compensated.
“We have all documents with certificate of land ownership but we are disappointed with the finance minister’s decision.
“ This is sabotage to local investors and lack of patriotism and priority is given to foreigners ,” the NDC chairman explained.
Mzindakaya threatened to resign, claiming: “I cannot work with ministers like this who hold back the efforts of local investors.”
According to NDC chairman, the minister wants them to go to commercial banks for borrowing: “We cannot go there because of the high interest rate.”
He asked: “Why should we go there when we have money for the project is available from Exim Bank of China.”
He recounted how the the prime minister had blessed the project to continue, and challenged minister’s decision.
The Acting Director from the Ministry of Industry and Trade Elli Pallanjo, said that they have been working together since the initial stage of the project and they expected that the project would be implemented by Exim as they had planned planed with the Ministry of Finance.
Mohamed Missanga (Singida West-CCM) said he was unhappy with the issue as he also had the information that the government delisted the project from Exim Bank financing
However, Mkuya said the information that she stopped financing of the project was wrong and stressing that the project was still on.