The African Development Bank (AfDB) Board of Directors’ approved on 20 May 2015, a loan of USD 70,5 million to finance the Tanzania Power Sector Reform and Governance support Programme (PSRGSP). The objective of the proposed operation is to promote inclusive growth and enhanced economic competitiveness through power sector, economic and financial governance reforms. The loan agreement will be officially signed next week, at the margins of the Bank’s Annual Meetings at its Headquarters in Abidjan. By providing financial resources for the national budget for this fiscal year 2014/15, the loan will support the implementation of the Government’s reform agenda.
This operation is part of a USD 140 million loan in a three year programmatic series (for 2014/15-2016/17). Subsequent operations of USD 35 million each will be prepared for 2015/16 and 2016/17 fiscal years.
By supporting the Tanzanian Government’s reform agenda in the energy sector, the Power Sector Reform and Governance support Programme (PSRGSP) will support the Government of Tanzania’s efforts to implement energy sector and related PFM reforms, particularly (i) strengthening the institutional framework and operational efficiency of the power sector; (ii) enhancing competition and private sector participation in the power sector; and (iii) improving governance through PFM reforms, with particular emphasis on strengthening procurement systems and debt management (to help reduce fiscal risks posed by parastatals).
“Ensuring financial and operational sustainability, particularly in respect of TANESCO (the national power utility) is one of the hallmarks of the proposed operation, and the approach is two-fold: (i) support cost-cutting measures; and (ii) support revenue-enhancing measures”, said Mr. Mukete, the new Director of the Governance, Economic & Financial Management Department.
The PSRGSP operation is critical to improving the performance of Tanzania’s power sector, with direct impact on improving access to electricity, maintaining macroeconomic stability, poverty alleviation, economic competitiveness and private sector development
This operation is built on the previous Budget Support Operation of USD 50 million approved by the Board, in December, 2013, which among other objectives, supported the development of the Electricity Supply Industry Reform Strategy and Roadmap. This roadmap was approved in June 2014 and formed the anchor for the approved operation. Through its Institutional Support Projects for Good Governance (ISPGG I and II), the Bank also contributed to supporting important PFM reforms, including in the areas of audit, procurement, and anti-corruption, which underpin this operation.
Management reiterated the importance of policy dialogue between the Bank, other development partners and the Government of Tanzania in the energy sector.
While recognizing the urgency of improving the financial sustainability of the energy sector, Senior Management highlighted the importance of the Bank supporting African countries to develop a comprehensive energy subsidy reform strategy and social safety nets for those most vulnerable to the impact of these reforms.
Toa Maoni Yako:
0 comments so far,add yours
Hii ni Blog ya Watanzania popote walipo duniani kwa ajili ya kuhabarisha, kutoa/kupokea taarifa na kuelimisha mambo yote yaliyo chanya kwa Taifa letu. Tafadhali sana unapotoa maoni usichafue hali ya hewa wala usijeruhi hisia za mtu/watu. Kuwa mstaarabu...