We initiate, develop and guide implementation of commercially viable projects with the private sector.

Introduction:

The National Development Corporation has completed feasibility study on the coal fired Mchuchuma Thermal Power Project, along with Detailed Environmental Impact Assessment.

The techno-economic studies conducted have established the technical feasibility and economic viability for the establishment of Thermal Power Plant with a capacity of 400MW.

Location:

The Mchuchuma Thermal Power Plant is located close to the Mchuchuma Katewaka coal fields, some 600km inland in the South-Western part of Tanzania near Lake Nyasa and close to its border with Malawi in the West and Mozambique in the South. It is situated in the Ludewa district of Tanzania.

The project lies between Latitudes 10° 14’ 30" S and 10° 21’ 30" S and Longitudes 34° 38’ 00" E and 34° 53’ 20" E ,at an altitude of about 1030m above mean sea level.

The TAZARA Railway line from Tanzania to Zambia, passes through Makambako town from which the power plant can be approached. The Thermal Power Plant is about 287 km from Makambako, which is also on the TANZAM highway from Tanzania to Zambia.

Power Plant -Main Features:

1. Station Capacity : 400MW;

2. Coal Supply : From Mchuchuma Surface Coal Mine;

3. Coal Transportation: Cross Country Conveyor System, 3km;

4. Coal consumption: 1.38 Millions Tons per year;

5. Water Requirement: Approximately 3200Cum/hr;

6. Make up Water Source: Katewaka river, 18km from the plant site;

7. Ash Disposal: The ash generated at the plant will be pumped to ash disposal area in slurry form;

8. Steam Generator: Circulating Fluidised Bed Combustion (CFBC) technology has been recommended.

Transmission System:

Present TANESCO transmission voltage levels are 220KV, 132KV and 66KV. The national grid is at 220KV level which extends from south-west area to south-east and central.

For interconnection of proposed Mchuchuma Thermal Power Project with National grid, two option have been envisaged:- (i) Mufindi at a distance of 240 circuit Km and (ii) Makambako at a distance of 200 circuit Km. Power supply to southern regions from the proposed thermal power project will be beneficial for overall development of this region.

A 220KV connection is therefore proposed to feed power to Songea . Three single circuits of 220KV lines are proposed from Mchuchuma Thermal Power project, one each to Mufindi, Makambako and Songea to evacuate 400MW of power from this project.

The picture above shows a Grid Interconnection Point

Project Cost Estimate:

The total capital cost of the project has been estimated at US $ 660 million.

Environmental Impact Assessment (EIA):

The EIA report has been prepared in accordance with the Tanzania Government and World Bank Standards.

The environmental impact assessment study, environmental baseline data have been generated/collected by organising field survey and monitoring with the study area.

This picture shows Katewaka River which will be source for water intake to the power station. It is an all season river travessing the project area and joins Ruhuhu river, which empties into Lake Nyasa.

The study area covers the proposed mine, linked thermal power project,

residential complex, habitat area, etc. The environmental data pertaining to

the following parameters, were generated/collected:-

All the impacts have been segregated into constructional phase and operational phase. After assessment of impact on various environmental parameters, significant negative impacts have been identified for scrutiny and planning the mitigating measures. Environmental quality of the study area is within threshold limit with respect to various environmental parameters.

Project Implementation:

The first unit is expected to be ready for commissioning in 2004, and subsequent units at an interval of at least six months each in the case of 6 x 67.5MW power plant. In the case of 4 x 100MW, commissioning of the first unit would be expected in 2004, and subsequent units at an interval of at least one year. Mchuchuma Thermal Power Project will be developed in the private sector. A successful implementation of the project requires development of the physical infrastructure.

To implement the Mchuchuma Thermal Power Project in the private sector it is proposed to create a private Power Subsidiary owned by NDC. This Subsidiary will then select an Independent Power Producer (IPP) of international reputation and experience to be a partner in a joint venture (JV) Company to develop, build and operate the Mchuchuma Power Plant.

The JV partner will have majority shareholding and the Management. The plant construction is expected to be implemented by an Engineer, Procure, Construction (EPC) Contractor. NDC and its JV-partner will provide project supervision for the execution of the EPC Contract. Plant operations can be handed over to an O&M Contractor with NDC and JV-partner providing overall monitoring of the O&M Contract.