Displaying items by tag: Tanesco
Tanzania: Tanga Cement Company Limited (TCCL) and Tanzania Electric Supply Company Limited (TANESCO) have signed a power supply agreement that ensures TCCL will receive 40MVA, up from 20MVA, through its substation in Pongwe, Tanga Region. TCCL's managing director, Reinhardt Swart, said that the move aims to revamp the production capacity while expanding the firm's business across the country.
"We are aware that all cement plants uses a lot of power from TANESCO so we have decided to construct our own substation to get direct power from TANESCO and reduce unnecessary interruption during the production and operations process," said Swart. He added that the agreement comes at a time when TCCL is expanding the capacity of its operations, including adding a new second kiln at its plant in Tanga Region.
East Africa Cement Producers Association opposes power tariff rise
27 November 2013Tanzania: The East Africa Cement Producers Association (EACPA) has opposed a proposal by Tanzania Electric Supply Company (Tanesco) to increase power tariffs by 68%, citing the risk of 'significant' rises in cement production costs.
The association also claimed that its members are already penalised by the costs related to power rationing, adding that cement producers recorded 1782 power rationing cases between 2012 and 2013.
"We strongly oppose any increase on the power supply tariff by Tanesco and request an urgent solution for the deficient service provided. Should the proposal be accepted, it would have a direct impact on the Tanzanian cement industry production costs up to US$0.71/bag. This amount will be 100% charged directly to the final consumer thus negatively affecting infrastructure and the economic development of Tanzania," said EACPA Tanzania chairperson Catherine Langreney in a statement.
Langreney, who is also the chief exexutive officer of Mbeya Cement, added that Tanzania's cement industry was also set to be further penalised with cheap imported cement since cement imports would not be affected directly by the increased production costs.