Dowans’ nightmare: Sitta slams proposed deal as a big rip-off
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Dar es Salaam
THE Speaker of the National Assembly, Samwel Sitta, has categorically declared that the government’s planned purchase of the Dowans power plant would be a major rip-off.
He strongly cautioned the government against the controversial move, saying it would be scandalous for the state to buy used power turbines instead of opting for brand new power generators directly from reputable manufacturers.
Sitta told a news conference in Dar es Salaam yesterday that the proposed purchase of the pre-owned 100MW turbines would amount to blessing the illegal Richmond contract that was passed over to Dowans Tanzania Limited under dubious circumstances.
’’I would like to caution the government about the consequences of ignoring the advice of the parliamentary energy and minerals committee against the purchase of the Dowans power plant,’’ he remarked.
He said it was quite astonishing that both the Ministry of Energy and Minerals and the state-run Tanzania Electric Supply Company Limited (TANESCO) were vigorously pushing for the deal given the obvious links between Dowans and the fraudulent Richmond Development Company LLC.
Sitta noted that the 90bn/- (more than $60m) being earmarked by TANESCO and its parent ministry for the purchase of Dowans’ turbines at Ubungo area in Dar es Salaam was enough to purchase brand new 100MW turbines from well-known manufacturers of power generators.
He said it was unthinkable that the government could even consider buying Dowans’ turbines while the company had already filed a pending case against TANESCO at a Paris-based chamber for arbitration of commercial disputes.
Sitta slammed claims by the Minister for Energy and Minerals, William Ngeleja, suggesting that it would take too long for TANESCO to purchase its own power turbines directly from manufacturers.
He cited the 2006 energy crisis in the country when private companies were able to airlift turbines to Tanzania within a matter of weeks.
’’It doesn’t make sense that while the determination of a commercial dispute between TANESCO and Dowans at Paris is still pending, we are now actually discussing the purchase of the turbines between the two parties that are in conflict with each other,’’ he noted.
He advised TANESCO to work with the government’s procurement watchdog -- the Public Procurement Regulatory Authority (PPRA) -- to speed up bureaucratic procedures that would enable the public utility to buy brand new turbines directly from manufacturers.
The Speaker dismissed calls for a joint seating of the parliamentary energy and minerals committee chaired by William Shellukindo and the Bunge public corporations accounts committee led by Zitto Kabwe to discuss their differences on the Dowans affair.
Shellukindo’s committee has rejected outright the proposed Dowans deal, while Zitto surprisingly backed the government’s dubious plan to buy the used power turbines.
In another development, Dowans Tanzania Ltd has now filed an objection at the Commercial Division of the High Court in Dar es Salaam, seeking to dismiss a successful court injunction by TANESCO blocking the sale of the Dowans power plant to a third party.
Dowans had last November invited bids for the purchase of its power turbines after its controversial power purchase agreement with TANESCO was terminated.
TANESCO was forced to withdraw from participating in the Dowans tender following strong objections from Shellukindo’s committee.
The public utility later secured a court injunction restraining Dowans from selling its power turbines pending the determination of the ongoing arbitration process in Paris .
However, TANESCO and its parent ministry have currently forcefully resurrected their controversial plan to buy Dowans’ power turbines regardless of the court injunction and the arbitration process under way in France
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