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Press Releases 2010

Press Release

September 13, 2010
Amb. Alfonso Lenhardt (standing 3rd from left ) witnessing the signing of two energy contracts valued at nearly USD 65 million (TShs 97.5 billion) between MCA-Tanzania and U.S firms Symbion Power LLC and Pike Electric. (Photo: U.S. Embassy, Dsm)

The U.S Ambassador to Tanzania Alfonso Lenhardt (standing third from left ) witnessing the signing of two energy contracts valued at nearly USD 65 million (TShs 97.5 billion) between MCA-Tanzania and U.S firms Symbion Power LLC and Pike Electric.

On September 13, U.S. Ambassador to the United Republic of Tanzania, Alfonso E. Lenhardt presided over the signing of two major new energy contract under the Millennium Challenge Corporation Compact signed between the governments of the United States of America and the United Republic of Tanzania in 2008.

These two contracts valued at nearly $65 million (Sh. 97.5 billion) were awarded by the Millennium Challenge Account – Tanzania (MCA-Tanzania) to two U.S. firms: Symbion Power LLC and Pike Electric. Together, the two firms will construct or expand approximately 1,600 kilometers of power transmission and distribution lines in the regions of Mwanza, Tanga, Dodoma, Mbeya, and Iringa.

Ambassador Lenhardt praised MCA-Tanzania and both companies, noting that the contract was awarded only after a vigorous, full and open international competition.

Paul Hinks, Symbion's Chief Executive Officer, said: “This is our fourth contract award in Tanzania this year and it is our second for Millennium Challenge Account – Tanzania. MCA-T has entrusted us with almost $100m of electrification work across the country, funded by the American people. In recent history, American construction companies have been noticeable by their absence in Africa, and the landscape has been dominated by firms from China. Symbion, as well as other American companies, intend to change things, and we aim to be a fixture in Tanzania for many years to come.”

J. Eric Pike, Chairman and CEO of Pike Electric Corporation said, “Pike Electric is pleased and honored to be a part of the electric infrastructure build out in Tanzania. It is our goal to train and employ Tanzanians in modern construction techniques to provide reliable power throughout this great country. ”

Bernard Mchomvu, Chief Executive Officer for MCA-Tanzania, said the contract awards represent the achievement of yet another important milestone in the ongoing implementation of the $206 million MCC Energy Project. Other components of the Energy Projects include the manufacture and installation of a new 100 megawatt submarine power cable linking Zanzibar to Mainland Tanzania. That contract was awarded in April 2010, and the fabrication process is already well underway. Another key component of the MCC Compact is the construction or rehabilitation of 25 power substations on the Mainland and in Unguja. The $45 million contract for the substation work was signed just two weeks ago and awarded to a joint venture between Symbion Power and the French firm Areva.

In addition to the Energy Project, the MCC Compact also includes major components that will provide significant assistance in the transport and water sectors. Under the Compact, the American people will provide a total of $698.1 million in assistance to Tanzania through September 2013.