MTWAU ENERGY PROJECT: An industrial opportunity in Lindi ... East... · OCTOBER 27-NOVEMBER 2. 2008...

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MTWAU ENERGY PROJECT: An industrial opportunity in Lindi andMtwara The 12MW power generation facility at Mtwara. fuaturing six 2MW gas-to-electrlcity generators. Picture/ARTUMAS By JIMMY SCHULTE T HE Mtwara Energy Project (MEP) is an integrated gas-to-power project that provides reliable. accessible and affordable electricity to end users in the Mtwara and Undi regions. Artumas' 12 MW gas.flred power station in Mlwara is expandable to meet energy demand growth long into the future. The upgrade of the regional transmission and distribution system will link ap three iso- lated networks allowing full displacement of aging diesel- fired generators that histori- cally have proved unreliable and expensive. due to the high cost of fuel, operations. and maintenance. AFtumas Group Inc .• an in- dependent oil and gas explo- ration and production com- pany operate the MEP. Head- quartered in Calgary, Canada. and listed on tbe Oslo Stock Exchange, its main opera- tions are focused in East Afri- ca, particularly Tanzania and Mozambique. Late in 2006, the first power from the MEP was distributed to Mtwara. Until then, the re- gion was limited to unreliable and expensive generation op- tions and as a consequence Mtwa'ra and Lindi remained ignored by commercial and industrial investors. The lack of reliable electric- ity overshadowed the region's abundance of natural re- sources, market access poten- tial and under utilized labour force. choking inveStment in the region and in turn curb- ing the development of econ- omy-driven infrastructure developments. such as roads, electrical grids, modern hos- pitals and other social in:sti- tutions. The one notable exception was the development of a fully functioning, deep-water har- bour facility at Mtwara, es- tablished to tranship the an- nual cashew harvest to export markets (and largely under utilized otherwise). WIth the introduction of re- liable, affordable energy, one of the major barriers to eco- nomic growth in the region has been removed. cial and industrial interests are re-examining the region and re-assessing the UDtapped potential for nearly all eco- nomic sectors, including agri- businesses, mining, forestry. livestock, fishing, tourism and light to heavy industry. In Mtwara, tbe immediate effects of electricity availabil- ity were apparent after only a few months. Residents in the region began selling cold drinks, children were able to enjoy ice cream, and wa- ter autl10rities were able to guarantee a steady water sup- ply, no longer relying on high cost, unreliable diesel gener- ators to operate their water pumps. Complementing the intro- duction of reliable electricity supply. new government re- forms and programs are set- ting the table for further eco- nomic expansion. As part of the Tanzania Development Vision (Vision 2025). the Mtwara Develop- ment Corridor - which links inland Tanzania, Malawi and zambia to foreign markets - was identified as a priority for government and private investment. Strategicinfrastructure de- velopments. public support. and private investments will enable the Mtwara Develop- ment Corridor-with Mtwara harbour as its export focus- to act as a gateway to the in- ternational economy. One of the key steps in this transformation is the estab- lishment of a Special Eco- nomic Zone (SEZ) in Mtwara. The Special Economic Zone Act provides incentives to export oriented investments through the Tanzania Invest- ment Centre. Under the program. 2,600 hectares adjacent to the Mt- wara Port and in close prox- imity to Artumas' generation facilities have been set aside for industrial development. This area offers access to deep-water harbour shipping services, institutional inves- tor support, and regional and international market access. Following the arrival of commercial interests in the region. projects to implement and improve social infra- structure will gain momen- tum. The government's facilita- tion of industrial and com- mercial investment will en- able private investors and public agencies to focus on modernizing schools. hospi- tals and community centres, ensuring a safe and healthy environment for employees, clients and the current citi- zens of the region. Over the next 5-6 years, the MEP will connect electricity to some 46,000 households in Lindi and Mtwara Region, reo ducing carbon dioxide emis- sions and improving the standard oflivlng for average citizens. The connection costs will be affordable and will utilize ready-board meters, which do not require electrical wiring, allowing'all households to en- joy the full benefits of clean, reliable power. In addition to the provi- sion of electricity, Artumas actively engages in design and delivery of Corporate So- cial Responsibility (CSR) pro- grams through the Artumas Africa Foundation, a not-for- profit entity designed to lev- erage Artumas' contributions and understood by the mem- and maximize the positive im- bers of communities inwhich pacts of the Company's pres- the company is operating. ence in the region. Strong, transparent rela- he Foundation maintains tionships based on trust and regular communication with respect allows Artumas to ef- local interest groups and com- fectively and efficiently carry munity and political leaders, out operations to the mutual ensuring that these initiatives benefit of all stakeholders. and strategies are welcome Mtwara Energy Project ARTUMAS Why Invest in Mtwara? Electricity Supply - arguably the most reliable in East Africa Natural Gas Supply - for all your thermal heating needs Industrial Sites - available near the Mtwara harbor Deepwater Port - fully developed with container handling services Airport - all weather, with daily flights from Dar es Salaam Road Infrastructure - all weather road to Dar es Salaam Export Opportunities - access to Southern Africa markets Business Opportunities - in agri-business, mining, forestry, livestock, light to large industries, social infrastructure, and much more %u your 6usiness ... ' .. · we of your energy needs

Transcript of MTWAU ENERGY PROJECT: An industrial opportunity in Lindi ... East... · OCTOBER 27-NOVEMBER 2. 2008...

OCTOBER 27-NOVEMBER 2. 2008

MTWAU ENERGY PROJECT: An industrial opportunity in Lindi andMtwara

The 12MW power generation facility at Mtwara. fuaturing six 2MW gas-to-electrlcity generators. Picture/ARTUMAS

By JIMMY SCHULTE

THE Mtwara Energy Project (MEP) is an integrated

gas-to-power project that provides reliable. accessible and affordable electricity to end users in the Mtwara and Undi regions. Artumas' 12 MW gas.flred power station in Mlwara is expandable to meet energy demand growth long into the future.

The upgrade of the regional transmission and distribution system will link ap three iso­lated networks allowing full displacement of aging diesel­fired generators that histori­cally have proved unreliable and expensive. due to the high cost of fuel, operations. and maintenance.

AFtumas Group Inc.• an in­dependent oil and gas explo­ration and production com­pany operate the MEP. Head­quartered in Calgary, Canada. and listed on tbe Oslo Stock Exchange, its main opera­tions are focused in East Afri­ca, particularly Tanzania and Mozambique.

Late in 2006, the first power from the MEP was distributed to Mtwara. Until then, the re­gion was limited to unreliable and expensive generation op­tions and as a consequence Mtwa'ra and Lindi remained ignored by commercial and industrial investors.

The lack of reliable electric­ity overshadowed the region's abundance of natural re­sources, market access poten­tial and under utilized labour force. choking inveStment in the region and in turn curb­ing the development of econ­omy-driven infrastructure developments. such as roads, electrical grids, modern hos­pitals and other social in:sti­tutions.

The one notable exception was the development of a fully functioning, deep-water har­bour facility at Mtwara, es­tablished to tranship the an­nual cashew harvest to export markets (and largely under utilized otherwise).

WIth the introduction of re­liable, affordable energy, one of the major barriers to eco­nomic growth in the region has been removed. Commer~ cial and industrial interests are re-examining the region and re-assessing the UDtapped potential for nearly all eco­nomic sectors, including agri­businesses, mining, forestry. livestock, fishing, tourism and light to heavy industry.

In Mtwara, tbe immediate effects of electricity availabil­ity were apparent after only a few months. Residents in the region began selling cold drinks, children were able to enjoy ice cream, and wa­ter autl10rities were able to guarantee a steady water sup­ply, no longer relying on high

cost, unreliable diesel gener­ators to operate their water pumps.

Complementing the intro­duction of reliable electricity supply. new government re­forms and programs are set­ting the table for further eco­nomic expansion.

As part of the Tanzania Development Vision (Vision 2025). the Mtwara Develop­ment Corridor - which links inland Tanzania, Malawi and zambia to foreign markets ­was identified as a priority for government and private investment.

Strategic infrastructure de­velopments. public support. and private investments will enable the Mtwara Develop­ment Corridor-with Mtwara harbour as its export focus­to act as a gateway to the in­ternational economy.

One of the key steps in this transformation is the estab­lishment of a Special Eco­nomic Zone (SEZ) in Mtwara. The Special Economic Zone Act provides incentives to export oriented investments through the Tanzania Invest­ment Centre.

Under the program. 2,600 hectares adjacent to the Mt­wara Port and in close prox­imity to Artumas' generation facilities have been set aside for industrial development. This area offers access to deep-water harbour shipping services, institutional inves­tor support, and regional and international market access.

Following the arrival of commercial interests in the region. projects to implement and improve social infra­structure will gain momen­tum.

The government's facilita­tion of industrial and com­mercial investment will en­able private investors and public agencies to focus on modernizing schools. hospi­tals and community centres, ensuring a safe and healthy environment for employees, clients and the current citi­zens of the region.

Over the next 5-6 years, the MEP will connect electricity to some 46,000 households in Lindi and Mtwara Region, reo ducing carbon dioxide emis­sions and improving the standard oflivlng for average citizens.

The connection costs will be affordable and will utilize ready-board meters, which do not require electrical wiring, allowing'all households to en­joy the full benefits of clean, reliable power.

In addition to the provi­sion of electricity, Artumas actively engages in design and delivery of Corporate So­cial Responsibility (CSR) pro­grams through the Artumas Africa Foundation, a not-for­profit entity designed to lev­

erage Artumas' contributions and understood by the mem­and maximize the positive im­ bers of communities inwhich pacts of the Company's pres­ the company is operating. ence in the region. Strong, transparent rela­

he Foundation maintains tionships based on trust and regular communication with respect allows Artumas to ef­local interest groups and com­ fectively and efficiently carry munity and political leaders, out operations to the mutual ensuring that these initiatives benefit of all stakeholders. and strategies are welcome

Mtwara Energy Project ARTUMAS

Why Invest in Mtwara?

Electricity Supply - arguably the most reliable in East Africa

Natural Gas Supply - for all your thermal heating needs

Industrial Sites - available near the Mtwara harbor

Deepwater Port - fully developed with container handling services

Airport - all weather, with daily flights from Dar es Salaam

Road Infrastructure - all weather road to Dar es Salaam

Export Opportunities - access to Southern Africa markets

Business Opportunities - in agri-business, mining, forestry, livestock, light to large industries, social infrastructure, and much more

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.. ·we tliin~ ofyour energy needs

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