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METROPOLITAN CITY OF DODOMA
UNITED REPUBLIC OF TANZANIA
ENERGY COMPLEX AND WATER SUPPLY

FUNDING AND IMPLEMENTATION
PRE-FEASIBILITY STUDY
PRESENTED BY: JSC “PETROVILLAGE AG”

ZURICH, SWITZERLAND
DODOMA
JANUARY 2018
METROPOLITAN CITY OF DODOMA. UNITED REPUBLIC OF TANZANIA. ENERGY COMPLEX AND WATER SUPPLY
FUNDING AND IMPLEMENTATION. PRE-FEASIBILITY STUDY
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I. TABLE OF CONTENT
Description Page №
I. TABLE OF CONTENT……………………………………………………………………………………………..……….2
II. INTRODUCTION………………………………………………………………………………………………..…..………8
III. DEFINITIONS………………….……………………………………………………………………………………………12
IV. COUNTRY PROFILE……………………………………………………....……………………………..……………..16
V. THE PROJECT………………………………………………………………………..…………………………..………..20
5.1. Scope of Works and Estimated Construction Cost………………………………….….………...20
VI. POWER GENERATION OVERVIEW……………….……………………………………………………..…..…..23
6.1. Government’s Strategy………………………………………………………….…………………..………..23
6.2. Power Demand Forecast………………………………………………….………………………..…….....24
6.3. Load Factor…………………………………………………………………………………………………..……..26
6.4. Tanzania Energy Potential…………………………………………….……………………………………..28
6.5. Retirement of Existing Generators…………………………………………….…..………………..….30
VII. PHASE 1. DIVISION “A”. COMBINED CYCLE POWER PLANT 450 MW……………………..….…31
7.1. Objective…………………………………………………………………………..………………………….....….31
7.2. Advanced Technology…………………………………………………….……………………………....…..31
7.3. Power Plant Solutions………………………………………………………..……………………….…..…..34
7.4. Site Selection………………………………………………………………….……………………………..…....36
7.5. Estimated Project Budget and Operation Expenses………….………………………………..…38
VIII. PHASE 1. DIVISION “A”. COMBINED CYCLE POWER PLANT 852 MW…....................…….42
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8.1. Power Plant Solutions…………………………………………………………………………….....……….42
8.2. Scope of Supply…………………………………………………………………………………………..………44
8.3. Description of Basic Equipment……………………………………..……………………………..…….45
8.4. Plant Layout……………………………………………………………………….…………………………..…..49
8.5. Estimated Project Budget and Operation Cost……………………………….………………..….50
IX. PHASE 2. DIVISION “A”. COMBINED CYCLE POWER PLANT 1,704 MW………………………..54
9.1. Objective…………………………………………………………………………………………………..…………54
9.2. Power Plant Solution……………………………………………………………………………..…………….55
9.3. Estimated Project Budget and Operation Expenses………………………………………………56
X. GAS PRODUCTION OVERWIEV………………………………………………………………….……………….….60
10.1. Natural Gas Reserves……………………………………………………..…………………….…………….60
10.2. Gas Production…………………………………………………………………………….……………………..62
10.3. Gas Demand……………………………………………………………………………………………………….65
XI. PHASE 1 & PHASE 2. DIVISION “B”. NATURAL GAS PIPELINES….…………………………….….…66
11.1. Objective……………………………………………………………………………………………..………….....66
11.2. Technical Description of the Project……………………………………………………………………70
11.3. Methodology. Basic Technical Parameters……………………………………………………....…77
11.4. Estimated Project Budget and Operation Cost………………………………….…………….…..80
XII. PHASE 1 & PHASE 2. DIVISION “D”. HIGH-VOLTAGE TRANSMISSION LINES…….…….……..86
12.1. Existing Grid System…………………………………………………………………….…………………….86
12.2. Development of Grid Interconnections………………………………………..…………………….88
12.3. Project Solutions……………………………………………………………………………………….……….89
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12.4. Applied Technology……………………………………….……………………………………………..…...91
12.5. HVDC Power System…………………………………………………………………………..………………92
12.6. AC and DC Technology Comparison………………………………………………..………………..101
12.7. The Project Component Construction Cost……………………………………………….….…..105
12.8. Net Transmission Cost……………………………………………………………………………………...109
XIII. PHASE 1. DIVISION “E”. STRATEGIC FUEL STORAGE…………………………………………..……..111
13.1. Objective………………………………………………………………………………..…………………..…...111
13.2. Fuel Market…………………………………………………………………………….………….……….…..112
13.3. Fuel Prices……………………………………………………………………………………………….…..…..113
13.4. Project Solution………………………………………………………………………………………..………114
13.5. Selection of Construction Site and Environment Protection………........................119
13.6. Terminal Operations………………………………………………………………………………………...119
13.7. Logistics………………………………………………………………………………………………..………….120
13.8. Annual Turnover and Operation Cost……………………………………………………………....124
13.9. The Project Construction Cost………………………………………………………………………....126
XIV. POTABLE WATER SUPPLY AND SANITATION SYSTEMS………………………………………….…..128
14.1. Existing Situation……………………………………………………………………………………………..128
14.2. Population Growth and Water consumption………………………………………………...…130
14.3. The Project Solution………………………………………………………………………………………...132
14.4. Pipeline Hydraulics and Pipe Diameter Selection……………………………..……………….135
14.5. Pipeline Construction……………………………………………………………….......................…140
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14.6. Water Intake facility……………………………………………………………………………….……..…141
14.7. Water Treatment Technology……………………………………………………….………………....143
14.8. Water Towers………………………………………………………………………………….…………….…146
14.9. Water Storage…………………………………………………………………………………………….…...147
14.10. Water Purification System………………………………………………………………………….…..148
14.11. Water Intake, Treatment and Distribution Cost……………..………………………..…....148
14.12. Sewage Treatment Plants…………………………………………………………………………….…150
14.13. Sewerage System……………………………………………………………………………….…………..153
14.14. Sewage Treatment and Sewerage System Operation Cost………………………….….154
14.15. Estimated Project Budget…………………………………………………………………….…………155
XV. FINACIAL ANALYSES………………………………………………………………………………….……….….....163
15.1. Methodology…………………………………………………………………………………….………..…...163
15.2. Financial Schedule and Cash Flow…………………………………………………………….……...164
15.3. Payback Period…………………………………………………………………………………………..…....180
15.4. Net present Value and Internal Rate of Return…………………………………………..….…180
15.5. Sensitivity Analysis…………………………………………………………………………………..……....184
XVI. BUSINESS STRUCTURE……………………………………………………………..……………………….….….185
16.1. Major Participants……………………………………………………………………………………...…...185
16.2. Structure of the Project…………………………………………………………………………….…..…186
XVII. GOVERNMENT’S WARRANTY AND SUPPORT……………………………..……………………….....…194
17.1. Status of Strategic Investor…………………………………………………………………………….…194
17.2. Project Contracts, Prices and Tariffs…………………………………………………………....…..196
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17.3. Guarantee for Utility’s Obligations………………………………………………………………..….196
17.4. Government’s Approvals…………………………………………………………………………..…..…196
17.5. Immigration Control and Work Permits……………………………………………………….……197
17.6. Tax Exemptions…………………………………………………………………………………………...…..197
17.7. Free Transfer and Repatriation of Funds……………………………………………………….....197
XVIII. FUNDING OF THE PROJECT……………………………………………………….…………………..………....198
18.1. Business Mode…………………………………………………………………………………………..….…198
18.2. General Loan Terms Requested………………………………………………………………...…….198
18.3. Collateral, Warranty and Credit Insurance……………………………………………….......…200
XIX. PROJECT IMPLEMENTATION……………………………………………………….……………………….…..200
19.1. Timetable of Implementation…………………………………………………….………………..…..200
19.2. Organization of Construction Works…………………………………………………………..….…203
XX. PROJECT MANAGEMENT……………………………………………………………………..………………..….206
20.1. Developer’s Team………………………………………………………………………………………….…206
20.2. Project Management and Consulting……………………………………………………………....211
20.3. Management of Developer’s Affiliates (SPV)………………………………………………..…..212
XXI. EDUCATION AND TRAINING LOCAL SPECIALISTS…………………………………………………….....212
XXII. ENVIRONMENT PROTECTION…………………………………………..…………………...,,,,,,,,,,,,,,,..….213
22.1. Environment Protection Law in Tanzania……………………………………………………......213
22.2. Impact due to Project Location…………………………………………………………………….....214
22.3. Combined Cycle Generation……………………………………………………………………….…...215
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22.4. Natural Gas Pipeline……………………………………………………………………………………..….218
22.5. High-Voltage Transmission Lines……………………………………………………………….….….220
22.6. Fuel Storage……………………………………………………………………………………………….….…223
22.7. Water Supply and Sanitation Systam………………………………………………………….….…223
XXIII. INVESTMENT CLIMATE…………………………………………………………………………………….……....227
23.1. Overview…………………………………………………………………………………………………….……227
23.2. Attitude Toward Foreign Direct Investments……………………………………………………228
23.3. Industrial promotion……………………………………………………………………………………..…228
23.4. Screening of Foreign Direct Investments…………………………………………………….…...229
23.5. Competition Law…………………………………………………………………………………………..…229
23.6. Conversion and Transfer Policies…………………………………………….………………..…….229
23.7. Expropriation and Compensation………………………………………………......................230
23.8. Dispute Settlement…………………………………………………………………….…………………..230
23.9. Protection of Property Rights………………………………………………………………………....232
23.10. Money and Banking System…………………………………………………….…………………...233
23.11. Responsible Business Conduct………………………………………………….…………………..233
23.12. Political Violence…………………………………….…………………………….…......................234
23.13. Corruption………………………………………………………………..…………………………………..235
23.14. OPIC and Other Investment Insurance Programs……….………………………………...236
XXIV. CONCLUSION………………………………………………………………………………………………………..…236
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II. INTRODUCTION
This Pre-Feasibility Study provides the brief description and analysis of proposed Project
for development Energy Complex, Water Supply and Sanitation System, in United
Republic of Tanzania (further: the “Project”), in order stakeholders would determine
their basic roles and responsibilities as well as viability outcomes of a Project before
investing a considerable amount of time and money into it.
Proposed Project is the most important part of ambitious State Program for shifting the
National Capital of Tanzania from Dar-es-Salaam to Metropolitan City of Dodoma, and
designed for supplying a new City with electricity, natural gas, potable water and create
a sewage service. Projected urban population of Dodoma is about 1.8 million up to 2030.
The State Program comprises development of six new satellite districts, to be built up
with comfortable housing, social infrastructure, transport and communications. One of
the districts ("wards") is allocated for the construction administrative buildings and
housing for staff of the State apparatus ("The Government City").
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Fig. 2-1. Map of Projected Satellite Towns in Metropolitan City of Dodoma
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Besides of the aforementioned Project, the State Program includes:
• Construction of Administrative Buildings;

• Housing;
• Construction of Social Facilities and creating Urban Infrastructure;
• Construction of 4- Line Highway 260 km from Morogoro to Dodoma;
• Construction of 4- Line Ring Road 80 km;
• Construction of four 6- Line Linked Highways between districts 50 km each;
• Construction of “Msalato” Passengers and Cargo Airport 3 million pax a year;
• Construction of “Simiyu” Commercial Airport for for 1 million pax a year.
Petrovillage AG was awarded to perform entire Program, have appointed by the

Government of Tanzania (further: the GOT) as the Developer and entered an
Implementation Agreement for execution this Project.
The GOT assign Petrovillage AG a special status of Strategic Investor in order to provide
Developer relevant privileges and maximum economic incentives as per Rule 49 of the
Tanzania Investment Regulations of 2002.
The GOT will provide Developer a Non-Monetizable Payment Warranty for cooperation
with International Financing Institutions. The Developer consider, that the Project shall
benefit immensely by inviting the GOT, via its structures (Utility), to own a minority stake
up to 16% in the Project's stock. This will enhance the Project’s financial viability and
strengthen its marketing influence with offtake clients. This is also will increase the
comfort level of the International Financing Institutions and Private Investors. Political
and financial risk will be covered by Multilateral Investment Guarantee Agency (MIGA,
WB Group), which have expressed its interest to the Project.
Proposed Energy Complex, which include Natural Gas transit pipeline to Uganda and
three Gas-Fired Power Plants, allocated Direct Current HV Transmission Lines to Uganda,
Rwanda, Burundi and Kenya, Drinking Water Supply and Sewage System, will play
extremely prominent role for development the Metropolitan City and the Country as a
whole, will promote industrial sector and transportation links, which could be the most
strategically important for Tanzania. Having huge reserves of natural gas, Tanzania is able
to provide electricity and gas to neighboring countries experiencing an acute shortage of
power. Quoting one of the leaders of the African financial world, "the resources of Africa
are just as huge as its electricity deficit". During the day, all of Tanzanian cities still
experienced from 3 to 4 hours shortage of power, and 60% of rural areas within the
Country have no electricity.
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Thus, the lack of power constrains the construction of such large industrial enterprises
as Philip Morris Tobacco Complex, Acacia Gold Refinery (affiliate of Barrick Gold
Corporation), Cane Sugar Plants, Iron Foundry, Urea and Fertilizers Production Plant, as
well as development hundreds of other medium and small industrial enterprises in the
Country.
At the 13th, 2017 Northern Corridor Heads of State Summit in Kampala in April 2016,
Uganda officially announced its choice for the Tanzania route for transit its crude, in
preference to the Mombasa or Lamu routes in Kenya, and have signed Inter-Government
Agreement to build 1,445 km pipeline from the lake Albert (Uganda) to sea port Tanga
(Tanzania). This pipeline is 24” diameter and capacity of 216K bld, will be the longest
electrically heated pipeline in the World, and will consume around 4,800GWh a year.
All of above stakeholders have expressed its willingness to sign take-off agreements with
TANESCO or directly with Developer.
Proposed Project will generate revenue from the following activity:
• Purchase and Sale of Natural Gas, transported thru pipeline to Tanzanian

consumers;
• Income from Natural Gas transportation to Uganda and Kenya;
• Power generation and electricity sales;
• Power transmission and sale electricity to remote industrial enterprises;
• Import, export, storage and sale high-quality fuel on internal market;
• Production, delivery and sale of drinking water to Dodoma;
• Income from sanitation service for Metropolitan City of Dodoma.
In addition, the Developer planned to build three small-scale LNG Plants with a capacity
of 50,000 to 160,000 tons per year in Dodoma, Shinyanga and Arusha to supply
households, located in rural areas. However, the LNG program is beyond the scope of
this Study.
The mode of Project is BOOT for Concession Period of 20 years. Once Concession period
is expired, all assets will be granted to the State.
Due to a combination of high-profitable Project Components (Gas midstream and

Power generation) and low-profitable social Project Components, such as Water Supply
and Sanitation Systems, the whole Project, as a consolidated enterprise, will have a
financial stability and guaranteed returns.
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III. DEFINITIONS
In this Study, unless context otherwise requires the following words and expressions,
shall have the meanings set forth below:
BOOT: Built-Own-Operate-Transfer business model, means, the Developer

or SPV is an Owner of the Project and Project Component within
Concession Period.
Completion Bond: An unconditional, irrevocable bank guarantee provided by the EPC

Contractor in favor of the Developer or the Lender at the time of
signing Financial Agreement between the Developer and the Lender
which insure bona fide performance of works by EPC Contractor
and secures the Developer’s obligation to achieve Financial Closing.
Concession Period: means period of 20 years, when the Developer thru its affiliates
(SPV) owns and operates the Project Component under Project
Agreement between Developer or SPV and GOT, that gives the
Developer or SPV the right to operate a specific business within
GOT's jurisdiction, subject to conditions described in the Project
Agreement.
Developer: Joint-Stock Company Petrovillage AG, Business Number

CH-170.3.034.126-0 with Head Office located on: Sihlquai 253,
8005 Zurich, Switzerland, having Tanzanian Office, located on: 439
Mahando Street, 2nd Floor 14111 Masaki, P.O. Box 105600
Dar-Es- Salaam, Tanzania
EWURA: Tanzanian Energy and Water Authority (Regulator).
FEED means: Front – End Engineering Design.
Financial Closing: means: the execution and delivery of the Financing Documents that
(together with equity commitments) evidence sufficient financing
for the Feasibility Study, Master Plan, FEED, topography, geology
and hydrology survey, design, construction, testing, completion,
and commissioning of the Project and Project Components
(following the resolution of any objections raised by the Lender to
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a term sheet or debt repayment schedule in accordance with
Financing Agreement that sets out a principal repayment schedule
and the other principal terms of the transaction between the
Developer and Lenders) and evidence of commitments for such
equity as is required by the Developer to satisfy the requirements
of Lenders and the Letter of Support and the satisfaction of all
conditions precedent for the initial availability of funds under the
Financing Agreement.
GOT: Government of United Republic of Tanzania and its structures.
kcmil: Measurement of wire gauge equal 0.5067 mm2
Lender: The Financial Institutions, party to the Financing Documents, or

subsequent Financial Institutions that become parties to the
Financing Documents in accordance with the terms of Financing
Agreement, who provide funds for implementation of the Project
and Project Components.
mcma unit of the natural gas measurement, means: million nominal cubic
meters per annum, equal to 37.24 scf
MIGA The Multilateral Investment Guarantee Agency is an international

financial institution which offers political risk insurance and credit
enhancement guarantees. Such guarantees help investors protect
foreign direct investments against political and non-commercial
risks in developing countries. MIGA is a member of the World Bank
Group
MMBtu: A thermal unit, means: Million British Thermal Unit. One

Btu is equal to the amount of energy used to raise the
temperature of one pound of water one
degree Fahrenheit. As applied to this Project, 1 MMBtu
is equal 0.001 MMscf
MMscf: A Natural Gas unit, means: Million Standard Cubic Foot, equal to
26.853 thousand nominal cubic meter in state of gas 15.6°C, 1 atm.
Provided, that Calorific Value of Tanzanian gas is 1,026 Btu/scf,
1 MMscf equal to 1,028 MMBtu.
MW: Megawatt or 1,000 kilowatts.
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NG Supplier: Tanzanian Joint Venture “Mnazi Bay Production”, who is producer
and supplier of Natural Gas from Mnazi Bay Gas Fields.
Shareholders are:
(a) Wentworth Resources (OSE:WRL, AIM:WRL), Canadian

Company, owns 31.94%;
(b) Maurel & Prom (M&P), French Company (Operator) owns

48.06%
(c) TPDC, Tanzanian State-owned Company, owns 20%
Non-Monetizable Payment Warranty: The Non-Monetizable Payment Warranty means,

that in consideration of the Developer entering into the Project
Agreement with the Utility, the GOT hereby irrevocably and
unconditionally guarantees and promises to pay the Developer or
its affiliate (SPV) any and every sum of money which the Utility is
obligated to pay to the Developer under or pursuant to the Project
Agreement in case the Utility has failed to pay when due in
accordance with the terms of Project Agreement, which obligation
of the GOT shall include monetary damages arising out of any
failure by the Utility to perform its obligations under the Project
Agreement to the extent that any failure to perform such
obligations gives rise to monetary damages. Such Non-Monetizable
Payment Warranty, however, could not be a subject of
monetization or collateral with any banks or Financial Institutes.
The form of Non-Monetizable Payment Warranty is referred in the
Project Agreement.
PPA: Power Purchase Agreement (Project Agreement) between power

producer (SPV) and Utility;
Project: The subject of Implementation Agreement between the Developer

and the GOT, which means in this Study: financing, design,
construction and operation of Energy Complex, Water Supply and
Sanitation Service for the City of Dodoma as described in Article I
and Article V.
Project Agreement: Executive agreement between Developer and GOT, between SPV
and GOT or another sub-contracts and commitments, entered
between Developer or SPV and third parties in frame of Project or
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Project Component implementation, required to be executed on or
before Financial Closing.
Project Component: The subject of Implementation Agreement and Project Agreement,

which is integrated parts of entire Project.
psi: A pressure unit, means: pound per square inch
psig: is the term for pressure specified by a gauge or other pressure

measurement device. It gives the difference between the pressure
in a pipe or tank and the pressure of the atmosphere (atm).
SPV: the Company, Limited by Shares, registered under Tanzanian

Companies Act 2002, created to fulfill Project Component under
Project Agreements and other commitments.
tpa means: metric tom per annum
Utility: the State-owned Company, acting under the Law of Tanzania,

such as:
(a) The National Transmission and Power Generation

Company: TANZANIA ELECTRIC SUPPLY COMPANY LIMITED
(TANESCO);
(b) The National Gas and Petroleum Company: TANZANIA

PETROLEUM DEVELOPMENT CORPORATION (TPDC).
(c) DODOMA URBAN WATER SUPPLY AND SEWERAGE

AUTHORITY (DUWASA)
(d) All other State-owned entities and organizations, involved

in the Project and Project Component implementation.
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IV. COUNTRY PROFILE
Tanzania (former: Tanganyika), officially the United Republic of Tanzania, is a country,

located in Eastern Africa within the Great Lakes region and has a land area of 883,343
km2. Tanzania also incorporates several offshore islands, including Unguja (Zanzibar),
Pemba and Mafia.
Tanzania is bordered by Kenya and Uganda to the North; Rwanda, Burundi and
Democratic Republic of Congo to the West; Zambia, Malawi and Mozambique to the
South; and by the Indian Ocean to the East. The mountain Kilimanjaro, Africa's highest
mountain, is in the North-Eastern Tanzania.
Fig. 4-1. Map of United Republic of Tanzania
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Major languages: English (official), Swahili (official), Bantu, Cushitic, etc.
Major religions: Christian (Roman Catholics, Protestants) 62%, Muslims 35%.
Tanzania, unlike most of its neighbors, has managed to avoid the civil war and upheaval
that has marked much of Africa's post-colonial history, earning itself a reputation for
political stability.
Since 1996, Country’s official capital city is Dodoma, where the President's Office, the
National Assembly, and some government ministries are located.
Fig. 4-2. Map of Tanzanian Regions
Tanzanian economy was heavily dependent on agriculture, which, in 2012, accounted for
around 27% of GDP, and employed around 62% of the population. Important exports
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were tobacco (US$ 0.24 billion), coffee (US$ 0.19 billion) and cashew nuts (US$ 0.14
billion). Minerals, such as gold (US$ 2.2 billion in exports) and tourism are also
increasingly contributing to a substantial proportion of the country’s economy.
Apart from wealth in agriculture, water, forestry and wildlife land, Tanzania is also very
rich in minerals such as gold, diamond, iron, coal, nickel, tanzanite, and uranium.
Tanzania is endowed with diverse forms of energy resources which have not been
optimized yet, including the natural gas reserves, hydro power, coal, biomass,
geothermal, solar, wind and nuclear energy.
Recently discovered significant offshore and onshore natural gas deposits have made the
Country as the second largest Natural Gas producer in Eastern Africa, after Mozambique.
Thus, natural gas is likely to be a most important future source of revenue for the Country
as well as playing a key role in meeting the Country’s energy needs.
Tanzania also is one of the most attractive country for tourism.
Now, Tanzania’s industrial sector is one of the fastest growing in Africa, and the Country
has one of the World’s fastest growing economies for the past ten years, with real GDP
growth averaging roughly 7% per annum. Tanzanian government has various strategic
plans for future economic growth, these are: VISION 2025, FYDP (Five Year Development
Plan), FYDPII and LTPP (Long Term Perspective Plan).
By considering the above government economic strategies, the following scenarios are
assumed:
a) HIGH scenario: After 2025, the high economic growth by developing natural gas and
the related industries will be achieved in line with the economic development
policies in Vision 2025.
b) BASE scenario: It is assumed that the current economic growth is driven by the main
two factors; higher population growth and increasing labor productivity. After the
year of 2025 the population growth rate will gradually go down and the economy will
be more stable than the current growth rate.
c) LOW scenario: The domestic economic conditions are assumed to be the same as
the BASE scenario, however, due to busting the international political and economic
conflicts, the international economy will not be encouraging. The conflicts will give
negative impacts on Tanzanian economy.
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When the above preconditions are considered, the GDP growth rates for each scenario
are assumed as follows:
Table 4-1: Country GDP growth rate by each scenario
SCENARIO 2013/15 2015/20 2020/25 2025/30 2030/35 2035/40

HIGH 7.0 8.0 8.0 8.0~10.0 8.0~10.0 8.0~10.0
BASE 7.0 7.0 7.0 6.0 6.0 5.0
LOW 7.0 6.0 6.0 5.0 5.0 4.0
Note: The GDP growth rate in above table are set by Task Force Team after discussion with MOF,
Planning commission and other relevant organizations.
During 1970 to 1975 Chinеse Government financed and helped build the 1,860 km-long
(1,160 miles) TAZARA Railway from Dar-es-Salaam to Zambia, which is significantly raised
Tanzanian economy at this time.
However, economic growth and massive Chinese investments have failed to improve the
lives of most Tanzanians, with two-thirds still living in poverty.
As mentioned, Uganda, a land-locked country, which have a huge crude oil reserves
(operated by TOTAL) and Tanzania has entered an Inter-Government Agreement for
construction of crude oil pipeline from Lake Albert (Uganda) to Tangs sea port
(Tanzania). This project includes 1,455 km electrically-heated pipeline, 8 pump stations,
marine terminal and jetty to mooring Suezmax tankers.
Also, the BG Group (a division of Royal Dutch Shell), Statoil, Exxon Mobil, and Ophir
Energy, in partnership with the Government of Tanzania through the Tanzania Petroleum
Development Corporation, going to build an onshore liquefied natural gas export
terminal, location in Lindi, on the Indian Ocean coast. Now, GOT has prepared a draft
agreement with international oil companies willing to take part in a $30-billion LNG
export project, which is to provide additional Tanzania tax revenues $3 to $6 billion a
year.
Tanzania has one of the World's fastest growing populations with the UN projecting that
its population of 55.57 million will triple by 2050.
The National currency is Tanzanian Shilling (TZS). It is assumed that the current exchange
rate with 2,250 TZS per US dollar (as of November 2017) and it is devaluated by 3% per
year. It is also assumed that the foreign exchange rate after 2025 will be kept at the same
level.
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V. THE PROJECT
5.1. Scope of Works and Estimated Construction Cost
The Project consists of several intertwined and integrated parts (Project Components).
Each of Project Component is a complicate and costly enterprise that requires significant
capital investment, high-quality performance and qualified personnel for operation.
The Project have divided into three Phases. This Study described the 1st and the 2nd
Phase.
The 3rd Phase is out of frames of this Study; will be developed in sequence of previous
two Phases and be reported as the separate part of the Project.
Indicative amounts of investments, calculated in this Study, have possible deviations
±5%. Exact construction cost and operation expenses will be defined based on FEED.
Table 5-1. Content of the Project and Estimated Construction Cost
ITEM ESTIMATED
№ DESCRIPTION OF THE PROJECT COMPONENT PROJECT COST
US$
PHASE 1
Energy Complex
01 Division A.
Construction and operation of Combined-Cycle Dual Fuel (HFO & NG) –
Fired Power Plant 450MW with 24x reciprocated medium-speed
Gensets MAN 51/60DF rating of 15/18 MW, 50 Hz and 2x Steam Turbine
Driven Gensets, Fuel Storage 50,000 cu. m., Fuel Distribution System,
Lubrication System, Air Filters and Supercharge System, Cooling and
Exhaust System, Interconnection Substation, Automatic Monitoring and
Control System, Auxiliary Facilities, Automatic Fire Extinguishing System,
office and camp for workers. 760,000,000
02 Division A.
Construction and operation of Combined-Cycle Gas-Fired Power Plant
852 MW consists in two Power Blocks SCC5-2000E (2+1) 426 MW, each
contained 2x Gas Turbine driving Gensets SGT5-PAC 2000E and 1x
Steam-Turbine driving Genset SST900, Interconnection Substation,
Automatic Monitoring and Control System, Auxiliary Facilities,
Automatic Fire Extinguishing System, office and camp for workers as per
Project Specification.
1,120,000,000
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03 Division B. 1st Phase.
Natural Gas Pipeline Dar-es-Salaam – Dodoma, NPS 42ʺ, 470 km, Flow
Rate up to 1,500 MMscfd (14.7 bcma), including Injection Station in
Kinyerezi, 4 Compressor Stations, City Gate Distribution Hub in Dodoma
and SCADA Monitoring System. 1,968,000,000
04 Division C. 1st Phase.
Allocated High-Voltage Direct Current (HVDC) Overhead Transmission
Line 500 kV, 490 km Dodoma – Singida – Shinyanga, including two
Converter Stations in Dodoma and Shinyanga. 1,910,000,000
05 Division D.
Oil Fuel Strategic Storage 500,000 m3, including Tank Farm, Approached
Railway, Loading/Unloading Facility, Automatic Foam Fire-Fighting
System, Control System, Electric Generators, Waste Purification System
and Fuel Logistic Facilities. 640,000,000
Total, for Energy Complex, Phase 1 6,398,000,000
06 Potable Water Supply and Sanitation Systems
a) Water Pipeline 1x 48” PVC 165psi pipelines 770 km, total water
flow up to 43.77 mcma;
b) 16x Pump Stations, served pipeline for each 50 km;
c) HVAC Power Line 132 kV 210 km along the trace;
d) Water Intake on Lake Victoria (Lamadia town);
e) Water Pre-treatment Plant for preparation tapping water before
transportation;
f) Water Purification Plant in Dodoma, for final purification of
drinking water and bringing its quality to meet European
Standards requirements;
g) Concrete Water Storage 1x 500,000 m3 (D=180 H=20 m) in
Dodoma;
h) Water Distribution System within Ntyuka and Ngh’ongh’onha
satellite Wards;
i) Sewage Main Lines 35 km within Ntyuka and Ngh’ongh’onha
satellite Wards (The Government City);
j) Sewage Purification Plant in Ntyuka Ward.
Total, Water Supply and Sanitation Systems, Phase 1 1,404,700,000

PHASE 2
Energy Complex
07 Division A.
Construction and operation of Combined-Cycle Gas-Fired Power Plant
1,704 MW in Shinyanga, consists in four Power Blocks SCC5-2000E (2+1)
426 MW, each contained 2x Gas-Turbine driving Gensets SGT5-PAC
2000E and 1x Steam-Turbine driving Genset SST900, Interconnection
Substation, Automatic Monitoring and Control System, Auxiliary
Facilities, Automatic Fire Extinguishing System, office and camp for
workers as per Project Specification. 2,180,000,000
Page 21 of 240

08 Division B. 2nd Phase.
a) Gas Pipeline Dodoma – Shinyanga NPS 36ʺ 538 km, Flow Rate up to
800 MMscfd (7.8 bcma), including 5 Compressor Stations, SCADA
Monitoring and Control System.
b) Gas Pipeline Shinyanga – Uganda border NPS 24ʺ, 566 km, Flow Rate
up to 380 MMscfd (3.7 bcma), including 5 Compressor Stations, SCADA 3,120,000,000
09 Division C. 2nd Phase.
a) Allocated HVDC Overhead Transmission Line 500 kV, 310 km
Shinyanga – Biharamulo, including Converter Station and Step-down
Transformer Station in Biharamulo.
b) Allocated HVAC Overhead Transmission Line 400 kV, 212 km
Biharamulo – Uganda border 1,490,000,000
Total Energy Complex Phase 2 6,790,000,000
Potable Water Supply and Sanitation Systems
a) Water Pipeline 1x 48” PVC 165psi pipeline 770 km, total water flow
up to 87.54 mcma;
b) Concrete Water Storage 1x 500,000 m3 (D=180 H=20 m) in Dodoma;
c) Water Distribution System within satellite Wards;
d) Sewage Main Lines within Buiguri and Chipogoro satellite Wards;
e) Sewage Purification Plant in Chipogoro Ward.
Total, Water Supply and Sanitation Systems, Phase 2 1,250,600,000
PHASE 3*
Energy Complex
05 Division B. 3rd Phase.
Extension of National Gas Distribution System, including:
a) Pipeline Arusha-Kenya border and Gas Distribution Network
b) Construction and operation three Small Scale LNG Plants in Dodoma,
Shinyanga and Arusha capacity from 50 to 160 tpa and CNG/LNG Service
Infrastructure. 1,330,000,000*
Potable Water Supply and Sanitation Systems
08 a) Water Pipeline 1x 48” PVC 165psi pipelines 770 km, total water flow
up to 131.31 mcma;
b) Concrete Water Storage 1x 500,000 m3 (D=180 H=20 m) in Dodoma;
c) Water Distribution System within satellite Wards Zanka and Kigwa;
d) Sewage Main Line within Zanka and Kigwa satellite Wards;
e) Sewage Purification Plant in Zanka and Kigwa satellite Wards.
1,090,000,000*
Total Phase 3 2,420,000,000*

Total Estimated Project Cost, Phase 1 7,802,700,000
Total Estimated Project Cost, Phase 2 8,040,600,000
TOTAL ESTIMATED PROJECT COST, PHASE 1 + PHASE 2 15,843,300,000
* Project Cost of Phase 3 provided for information purpose only and not included in this Study
Page 22 of 240

The Scope of Works shall mean and include, during Concession Period, designing,
financing, construction, testing, commissioning, operation and transfer Project
Components according to Feasibility Study, Master Plan, FEED and detailed drawings of
each Project Component, under Implementation Agreement, Project Agreements and
other commitments.
The Project shall be implemented in accordance with the American and European
Standards, Technique Requirements and Regulations, application of which does not
contradict to National Standards of the United Republic of Tanzania.
VI. POWER GENERATION OVERVIEW
6.1. Government’s Strategy
The GOT issued series of development and sector policies and strategies, which support
the Country’s progress towards the basic goals: universal energy access, increasing the
share of renewable energy and enhancing energy efficiency. These strategic documents
and activities include the following:
Policy Framework:
• Energy and Water Utilities Authority Act 2001 and 2006

• National Energy Policy of 2003
• Rural Energy Act 2005
• Electricity Act 2008
• The Petroleum Act 2008
• Public Private Partnership Act No. 18 of 2010 and its Policy of 2009
• Standardized Power Purchase Agreement & Tariffs (2008) (<10 MW)
Government driven strategies and plans:
• Tanzania’s Development Vision (TDV) 2025 (1999)13

• The Tanzania’s Long-term Perspective Plan (LTPP) 2011/12 – 2025/2614
• Joint Energy Sector Review (JESR) 2012/201315
• National Strategy for Growth and the Reduction of Poverty II - MKUKUTA II (July
2010)16
Page 23 of 240

• Power Systems Master Plan (PSMP) 2012 (May 2013)17
• MEM Strategic Plan from 2011/12-2015/16 (November 2012)18
• Big Results Now Phase I (BRN) Initiative 2013-2016 (April 2013)19
• Scaling-up Renewable Energy Programme (SREP) – Investment Plan for Tanzania
(May 2013)20
• Biomass Energy Strategy (BEST) for Tanzania (April 2014)21
• Electricity Supply Industry (ESI) Reform Strategy and Roadmap 2014-2025 (June
2014)22
• National Electrification Program Prospectus (herein referred to as REA
Prospectus) developed by REA (July 2014)
• Guidelines for Sustainable Liquid Biofuels in Tanzania (Nov 2010)23
• The National Natural Gas Policy of Tanzania (Oct 2013)24
• Preparation of National Energy Efficiency Program for Tanzania (July 2014)25 o
Energy Subsidy Policy (September 2013)26
• The Draft National Energy Policy (January 2015)27
Private Sector Strategies:
• Tanzania Domestic Biogas Program (TDBP)
6.2. Power Demand Forecast
In 2016 the Power System Master Plan (PSMP) was developed by the consultant SNC
LAVALIN of Canada for the GOT, through TANESCO, to provide a fundamentally new plan
to guide the development of the power system in Tanzania for the next 25 years. The
study provided a detailed assessment of load demand projections, available options for
meeting the demand and requirements for a new higher voltage backbone transmission
system for the country.
This section provides estimate of the power demand in Tanzania over the study period
from 2016 to 2040. This forecast study explicitly account for changed economic
background, government development objectives in the power sector in addition to
specific issues concerning the power demand.
Page 24 of 240

Table 6-1. Summary of Power Demand Forecast (Base Case)
Demand Items Unit 2015 2020 2025 2030 2035 2040
Domestic Demand MW 974 2,190 3,659 5,872 9,351 14,332

Peak Demand Additional Demand MW 71 1,041* 1,041* 1,041* 1,041* 1,041*
Export (Incl. Loss) MW 0 685 677** 677** 677** 677**
Total MW 1,045 3,916 5,377 7,590 11,069 16,050
Domestic Demand MW 1,267 2,847 4,757 7,633 12,156 16,631
Installed Additional Demand MW 92 1,353 1,353 1,353 1,353 1,353
Capacity, Peak 1.3 Export (Incl. Loss) MW 0 890 880 880 880 880
Total MW 1,359 5,091 6,991 9,867 14,389 20,865
* Power demand for projected Metropolitan City of Dodoma not included (see Table 6–3)
** Recent Inter-Government export projects not included (See Table 6-3)
Source: MEM, TANESCO and Regional demand data survey
Fig. 6-1. Growth of Electricity Demand
Source: TANESCO
Page 25 of 240

6.3 Load Factor
Actual peak demand and actual power generation data obtained from TANESCO were
used to calculate the load factor by using the following equation:
Load factor = Generation (MWh)/ (24 hours*365 days) / Peak demand (MW)*100
Where, Generation = Final electric energy consumption +T/D loss + Own use
As shown in Table 6-2, future load factors are predicted by assuming that it will reach
70% after 2030.
Table 6-2. Load Factor Forecast
Year Load Factor Year Load Factor Year Load Factor Year Load Factor
2001 63.4 2009 70.0 2017 71.0 2025 70.0
2002 65.5 2010 70.0 2018 70.0 2026 70.0
2003 63.8 2011 70.0 2019 70.0 2027 70.0
2004 65.3 2012 76.0 2020 70.0 2028 70.0
2005 75.5 2013 71.0 2021 70.0 2030 70.0
2006 67.5 2014 74.5 2022 70.0 2035 70.0
2007 69.6 2015 74.0 2023 70.0 2040 70.0
2008 69.5 2016 72.0 2024 70.0
Source: TANESCO and Team compilation

Note: Above numbers are not included loads for projected Metropolitan City of Dodoma and planned export.
Below is the list of existing and projected major consumers within the Country:
Page 26 of 240

Table 6-3. Major Loads in Tanzania (Existing and Projected)
Consumer Power Consumption MW Location Year of Operation
Mines
Kabanga Nickel 47 Kagera 2018
Mibongo Gold 23 Kigoma 2016
Ntaka Hill Nickel 44 Lindi 2019
Panda Hill Gold 7 Mbeya 2015
Buckreef Gold 11 Geita 2016
Geita Gold 39 Geita 2017
Golden Ridge Gold 12 Shinyanga 2015
Dutwa Nickel 18 Shinyanga 2014
Buluanhulu Gold 27 Shinyanga 2013
Williamson Diamong 12 Shinyanga 2013
Processing Plants, Manufactures and Residential
Dangote Cement Plant 40 Mtwara 2016
Eagle Cement Co. Ltd 20 Coast 2015
Mchuchuma Iron Smelter 120 Iringa 2021
Textile Mill 30 Shinyanga 2019
LNG Power Plant 160 Lindi 2021
Makonde Water Supply 12 Mtwara 2017
Mkulazi Sugar Mill 18 Morogoro 2021
Helm Ammonia 45 Singida 2021
Helm Ammonia/Urea 98 Singida 2022
Helm Methanol 76 Singida 2024
Goodwill Ceramic F.Z.E. 9 Morogoro 2018
Coca Cola Ltd 32 Morogoro 2019
Ferrostaal Ltd 170 Iringa 2024
Phillip Morris Tobacco 69 Morogoro 2013
Dar Airport Terminal 3 70 Dar-es-Salaam 2019
Dodoma Airport 83 Dodoma 2021
Crude Oil Pipeline Lake Albert Lake Albert-
(Uganda) to Tanga sea port 460 Tanga 2022
Gas Pipeline 1st, 2nd & 3rd Phase 425 Dar - Uganda 2022
Dodoma Water Supply 39 Mwanza 2021
Dodoma Metropolitan City 3,600 Dodoma 2026
Export
Uganda 1,800 2021
Kenya 800 2021
Burundi 400 2022
Rwanda 250 2022
Total: 9,085
Page 27 of 240

6.4. Tanzania Energy Potential
The Power Sector is regulated by:
• The Acts of 2001 and 2006 which establish the EWURA as the regulatory authority;
• The National Energy Policy of 2003 that aims at promoting sustainable energy in
Tanzania; the Rural Energy Act 2005 which established the Rural Energy Agency
(REA);
• The Rural Energy Board (REB) and the Rural Energy Fund (REF); the Electricity Act
2008; the Petroleum Act of 2008;
• The Gas Policy of 2014; and the Public Private Partnership (PPPs) Policy of 2009
and the PPP Act N.18 of 2010 that establishes the framework for PPPs including
the coordination unit.
The Tanzania Electric Supply Company Limited (TANESCO) were a sole electricity off-
taker in Tanzania. Fully owned by the Government, TANESCO is the only vertically
integrated electricity supplier in Tanzania. However, in June 1992, their monopoly ended
when power trading was opened up to private sector participation.
The reform roadmap for the sector and a draft Energy Subsidy Policy are already
developed and the implementation of the roadmap is already in place.
In terms of total primary energy consumption, biomass represents 90% of the energy
consumed in Tanzania. Electricity represents 1.5% and petroleum products represent 8%
of the energy consumption in the country. Solar, coal, wind and other sources represent
around 0.5% of the total energy consumed in the Country. The following technologies
are considered in formulating generation expansion plans:
Hydro Power: Tanzania has comparatively abundant hydro power potential since its
inland area has a high elevation above sea level, and there are precipitous rivers. Various
studies on hydro power have been carried out over a long period of time, and hydro
power potential in Tanzania is estimated as 38,000MW and about 190,000GWh/year.
However, a seasonal variation of energy generated and vulnerability to climate change,
environmental impact, resettlement of people, and huge initial investment cost are also
negative aspects of hydro power development. Still, hydro is the most economical source
of power generation. Therefore, maximum hydro capacity could be limited to 4,700MW.
Page 28 of 240

Coal-fired Generation: Financing for coal-fired power plants is challenging because of
the international pressure against coal fired power due to greenhouse gas emission. In
addition, disposal of bottom and fly ash and gypsum (by-product of Flue Gas Desulfurizer)
is also a constraint in developing coal-fired power plant.
Geothermal: The challenges in developing geothermal resource are high upfront

investment costs; long lead time from conception to production of electricity; capital
intensive and high exploration cost and risk, inadequate capital resource to undertake
necessary studies; remote location and limited infrastructures.
Therefore, geothermal power plant included in the generation expansion plan is limited
to the projects which have high possibility of development potential.
Renewable energy: Generation cost of renewable energy, i.e. solar and wind, has
dramatically dropped recently.
In case of utility scale solar project, levelized generation cost is in the range of
US$54/MWh (United States) to US$181/MWh (Japan) at a 3% discount rate. However,
generation output from solar and wind is intermittent and not stable. Moreover, daily
load pattern in Tanzania is still “lighting peak” type, therefore, solar cannot be utilized
during peak hours unless storage device is equipped.
In order to achieve reliable and stable power supply, development of conventional
generation plants must be accompanied with the development of renewable energy
plants to supplement and backup the fluctuation of renewable energy generation.
Considering intermittent output and low utilization factor and of solar (10-15%) and wind
(20-30%), contribution of such renewable energy generation to total energy generated
is limited.
Nuclear Energy: The potential for uranium deposits in Tanzania was identified in a
countrywide airborne geophysical survey in the 1970 ́s. Currently, there are about 20
companies engaged in exploration for uranium in Tanzania. Significant mineralization or
deposits have been identified in the Dodoma area at Handa and Bahi North (Mantra
Resources), in the Ruhuhu area near Lake Nyasa (Uranium Hunter, Atomic Minerals, and
Western Metals). Nuclear generation could become an option, particularly when other
indigenous resources are fully committed.
This technology has not been considered in the nearest future because it is considered
that nuclear generation could only be selected when:
a) The Government has finalized the policies on uranium and nuclear

generation;
b) Human Capacity building on nuclear technology and other related matters.
Page 29 of 240

Gas-fired Power Plants: Taking in account that Tanzania has 57 trillion scf proven Natural
Gas reserves, the availability of gas to power is the key for considering the share of gas
fired power in generation mix. It is assumed that gas fired power accounts for 40% of
energy generation by 2040 as a condition of estimating total gas demand.
6.5. Retirement of Existing Generators
In the scheduling of new generation, existing Power Plants were planned to be retired at
the end of their economic life except for hydroelectric plants, were assumed to remain
in service: the interconnected grid system is composed of several power plants, among
those seven are gas fired plants, two are Heavy Fuel Oil (HFO) plants, two are Biomass
plants, and one is Industrial Diesel Oil.
Table 6-4. Existing Generator Retirement Dates (Interconnected System)
Plant Name Nominal Normal Service Life Installation Retirement Year

Capacity years Year, December
MW January
Hydro
Mtera 80 50 1988 2038
Kidatu 204 50 1975 2025
Hale 21 50 1967 2017
Kihansi 180 50 2000 2050
Pangani Falls 68 50 1995 2045
Nyumba Ya Mungu 8 50 1968 2018
Mwenga 4 15 2012 2017
Thermal
SONGAS I (2 units) 40 20 2004 2024
SONGAS II (3 units) 120 20 2005 2025
SONGAS III (1 unit) 40 20 2006 2026
Tegeta IPTL & GT 145 25 2002/2009 2027/2029
Ubingo I 100 20 2010 2030
Symbion 112&Dodoma 167.5 2 2011 2013
Symbion Arusha 50 2 2012 2014
Ubingo II 105 20 2012 2032
Tanwat 2.7 20 2010 2029
Zuzu Diesel 7.44 20 1980 2014
TPC 17 20 2011 2030
Total: 1,359.64
Page 30 of 240

However, thermal power plants on average have an economic life span of twenty (20)
years, and 36% of it are on the end of economic life. The life span can be extended by
proper maintenance and interim replacement of major parts.
VII. PHASE 1. DIVISION “A”.

COMBINED CYCLE POWER PLANT 450 MW
VII. DIVISION “A”. POWER GENERATION. BLOCK “A”

7.1. Objective
This type of generator chosen as the fastest and reliable way to turn on the entire
Project and to supply electricity for residential, industrial sectors in region and for
Developer’s construction sites. Taking in account the shortfall of electricity in the
City of Dodoma and region, the shortest terms of construction and availability of
liquid fuel, this facility will be as the first important step for raising economical and
business activity within Dodoma and Region, will provide an opportunity to
starting a housing, social- and administrative buildings construction in the new
Capital of Tanzania as soon as generator is operational.
It is assumed, that during the first period when the gas pipeline is under
construction, a liquid fuel (HFO or marine fuel) will be used to generate electricity.
Further, once gas pipeline is operational, engines will be switched to gas fuel.
Further, this Power Plant will be used as peak loading generator, which always
provide full reliability in electricity supplying to the Government City,
telecommunications systems, hospitals, police and other vital facilities in the
event of an accident situation on the gas pipeline.
7.2. Advanced Technology
The Power Plant equipped with the main double-fuel (Natural Gas and Heavy Oil Fuel)
reciprocating engines which are used to drive a synchronous generator which provides
the electrical power output.
Page 31 of 240

Combined Cycle technology is designed for maximum efficiency in which the hot
exhaust gases from the main engines are used to raise steam to power a steam turbine,
being connected to asynchronous electricity generator.
This additional electrical energy increases the net efficiency of the Power Plant of at least
3%, increases the amount of electricity generated of at least 9% without additional fuel
consumption, generates more profit and limits the exhaust gas emissions to the
atmosphere.
Fig. 7-1. Heat Balance
Here are the following advantages of dual-fuel reciprocating engines generation:
• Relatively low capital cost;

• Design of the Plant is easy and installation process is also easy and takes a short
time (18 months);
• Possibility to delivery and construction in modular standard blocks;
• No sensitive to the load change;
• There are smaller amount replacement losses;
• It occupies less space;
• Could be turn on and stopped very quickly;
Page 32 of 240

• Requirement of cooling water is much less;
• Dual fuel engines allow to switch smoothly and seamlessly from gaseous fuel to
liquid fuel operation (and vice versa), giving you full fuel flexibility
Fig. 7-2. Scheme of Combined Cycle Diesel/Gas-Fired Power Plant
As the disadvantage of diesel generation is, that operation cost and net cost of electricity
is quite high and depends of the crude market price (when using liquid fuel).
However, the modern trend to fall crude prices provides the diesel power generation
more and more competitive.
Projected Power Plant has very flexible regime of power generation and would be used
as the peak generator which is to provide the grid stability.
Page 33 of 240

7.3. Power Plant Solutions.
The technological scheme includes 24 (twenty-four) MAN GenSets with reciprocating

two-stroke low-speed double-fuel engines MAN 51/60DF 18V 17,766 kW. The basic
parameters shown in the Fig. 7-3 below.
The type of fuel: Natural Gas / Heavy Oil Fuel (HFO) or Marine Diesel Fuel.
The project is included also the fuel and lube distribution system, tank farm, electric
substations, water/waste purification systems, automatic fire extinguishing and security
systems. Also, the modern capture system will be integrated in order to meet
environmental requirements.
Fig. 7-3. Exhaust structure Fig. 7-4. MAN GenSet

for 6 GenSets
Page 34 of 240

Fig. 7-5. Generator Set Technical Specification
Page 35 of 240

The building structures will be made of lightweight prefabricated steel structures.
As the Engineering, Procurement and Construction (EPC) Contractor of the Power Plant
is the MAN DIESEL & TURBO, Germany, which has expressed its interest for turnkey
construction of this project.
Fig. 7-6. Internal view of the Power House
7.4. Site Selection
The site selection for the proposed Power Plant will be made in accordance with the
Dodoma City Master Plan, and will recognize need to minimize environmental impacts.
The site should be away from any ecologically sensitive areas and removed from human
habitation and commercial activities to minimize adverse environmental and social
impacts. The Power Plant site should have a sufficient green zone it to control future
human encroachment. The site should have enough free space for security reason.
The facility will be clustered with petroleum and gas infrastructure which includes RW oil
product terminal, input depot, as well as road/rail loading facilities for petroleum
products. The Railway, Highway, Gas Pipeline and HV Power Grid shall pass through this
location.
Page 36 of 240

Fig. 7-7. Art-view on the CCPP
Fig. 7-8. MAN Turbo & Diesel delivers GenSets to Construction Site
Man Turbo & Diesel source
Page 37 of 240

7.5. Estimated Project Budget and Operation Expenses
The evaluation of the Project below is based on the estimated capital cost, provided by
EPC, pre-negotiated electricity purchase prices and fuel market prices on the date of
drafting this Study.
Thereby is assumed, that:
• The real cost of the EPC Contract will be in ±5% of estimated;

• The volatility of HFO and Lube market prices will be in frame of ±15%;
• The gas fuel price is fixed during 10 years of operation under Gas Purchase
Agreement;
• Fixed operation expenditures will stable for the next 5 years of operation.
Table 7-1. Phase 1. Division “A”. CCPP 450 MW. Estimated Project Budget, including
Equipment, Construction Materials and Labor
Project Balance Required

DESCRIPTION VENDOR NAME OR Included in
OTHER INFORMATION Purchase Construction Totals
Equipment As- Environmental Bulks &
Is Where-Is Control Required
Equipment Services
BASE EQUIPMENT PACKAGE all items below x 24 $ 14,746,100 $ 353,906,400 $ 353,906,400
MAN 51/60DF 18V 500/514 rpm 50 Hz MAN DIESEL & TURBO

17,586 kW GENSET RECIPROCATED
ENGINE, GENERATOR &
ACCESSORIES
TURBOCHARGER MAN DIESEL & TURBO
LUBE OIL AND HT COOLING WATER MAN DIESEL & TURBO

UNIT
LUBE OIL PURIFIER UNIT MAN DIESEL & TURBO
FUEL OIL AND LUBE OIL FILTER UNIT MAN DIESEL & TURBO
LUBE OIL SUMP TANK MAN DIESEL & TURBO
HEAVY FUEL OIL PURIFIER UNIT MAN DIESEL & TURBO
AIR RECEIVER MAN DIESEL & TURBO
AIR COMPRESSOR MAN DIESEL & TURBO
FUEL OIL SERVICE TANK MAN DIESEL & TURBO
DIESEL OIL SERVICE TANK MAN DIESEL & TURBO
LT AND HT COOLING WATER PUMPS MAN DIESEL & TURBO
HEAVY OIL SUPPLY PUMP MAN DIESEL & TURBO
DIESEL OIL SUPPLY PUMP MAN DIESEL & TURBO
INTAKE AIR FILTER MAN DIESEL & TURBO
EXHAUST GAS SILENCER MAN DIESEL & TURBO
Page 38 of 240

EXAUST GAS BOILER MAN DIESEL & TURBO
EXHAUST GAS STACK MAN DIESEL & TURBO
STEAM TURBINE One unit package $ 11,100,000 $ 11,100,000 $ 11,100,000
STEAM TURBINE GENSET MAN DIESEL & TURBO
STEAM SURFACE CONDENCER YUBA HEAT TRANSFER

LLC
CONDENSATE PUMPS RUHRPUMPEN
FEEDWATER HEATERS YUBA HEAT TRANSFER

LLC
BOILER FEED PUPMS, BOOSTER MAN DIESEL & TURBO

PUMPS & S/U PUMP
STEAM GENERATOR ENGINEERING & MAN DIESEL & TURBO

SUPPLY
CRITICAL PIPING B.F. SHAW
HIGH PRESSURE VALVES #1 FLOWSERVE, INC
HIGH PRESSURE VALVES #2 WEIR PUMPS
SEVERE CONTROL VALVES MAN DIESEL & TURBO
TURBINE GENERATOR TECHNICAL MAN DIESEL & TURBO

SEERVICE
OTHER EQUIPMENT $ 17,646,000
COOLING SYSTEM MAN DIESEL & TURBO $ 3,172,000 $ 3,172,000
FUEL DISTRIBUTION SYSTEM MAN DIESEL & TURBO $ 2,189,000 $ 2,189,000
LUBE DISTRIBUTION SYSTEM MAN DIESEL & TURBO $ 1,612,000 $ 1,612,000
DISTRIBUTED CONTROL SYSTEM MAN DIESEL & TURBO $ 715,000 $ 715,000
GENSETS BULDING BRIDGE CRANE MAN DIESEL & TURBO $ 1,508,000 $ 1,508,000
FUEL LOADING SYSTEM MAN DIESEL & TURBO $ 2,125,000 $ 2,125,000
STEP-UP TRANSFORMER MAN DIESEL & TURBO $ 930,000 $ 930,000
AUXILARY & STARTUP MAN DIESEL & TURBO $ 1,222,000 $ 1,222,000

TRANSFORMER
MAN DIESEL & TURBO
ISOPHASE BUS DUCTS $ 720,000 $ 720,000
NON-SEGREGATED BUS DUCT MAN DIESEL & TURBO $ 702,000 $ 702,000
POWER DISTRIBUTION EQUIPMENT MAN DIESEL & TURBO $ 923,000 $ 923,000
AUXILIARY DIESEL GENERATOR MAN DIESEL & TURBO $ 175,000 $ 175,000
UNINTERRUPTIBLE POWER SUPPLY MAN DIESEL & TURBO $ 795,000 $ 795,000

POWER, CONTROL AND INSTRUMENT
CABLE MAN DIESEL & TURBO $16,788,000 $ 858,000 $ 858,000
FURNISH AND INSTALL CONTRACTS
MATERIAL HANDLING UNAWARDED $ 247,000 $ 585,000 $ 832,000
INTAKE STRUCTURE MAN DIESEL & TURBO $ 318,000 $ 318,000
FIELD ERECTED TANKS MAN DIESEL & TURBO $ 338,000 $ 2,542,000 $ 2,880,000
FIRE PROTECTION SYSTEMS MAN DIESEL & TURBO $ 955,000 $ 955,000

TEMPORARY CONSTRUCTION
FACILITIES UNAWARDED $ 195,000 $ 195,000
CONSTRUCTION CONTRACTS
DIESEL GENSETS ERECTION MAN DIESEL & TURBO $ 20,636,000 $ 20,636,000
Page 39 of 240

STEAM GENERATOR INSTALLATION &
TESTING MAN DIESEL & TURBO $ 10,491,000 $ 10,491,000
PIPING, MECHANICAL EQUIPMENT
AND MAN DIESEL & TURBO $ 12,253,000 $ 12,253,000
INSULATION
ELECTRICAL & CONTROLS
INSTALLATION MAN DIESEL & TURBO $ 12,486,000 $ 12,486,000
SITE PREPARATION - POWERBLOCK MAN DIESEL & TURBO $ 8,242,000 $ 8,242,000

POWER HOUSE EXCAVATION AND
DEWATERING UNAWARDED $ 5,310,000 $ 5,310,000
SERVICE & SUPPORT BUILDING AND
WATERHOUSE MAN DIESEL & TURBO $ 13,195,000 $ 13,195,000
POWER HOUSE FOUNDATIONS UNAWARDED $12,298,000 $ 12,298,000
DUAL FLUE CHIMNEYS MAN DIESEL & TURBO $ 11,960,000 $ 11,960,000
PIPEBRIDGE & MUSC STRUCTURES MAN DIESEL & TURBO $ 9,113,000 $ 9,113,000
SITE PREPARATION – RAIL SPUR &
COAL YARD MAN DIESEL & TURBO $ 8,307,000 $ 8,307,000
ENVIRONMENTAL EQUIPMENT
FOUNDATION UNAWARDED $ 5,636,000 $ 5,636,000
YARD AREA FOUNDATION UNAWARDED $ 15,379,000 $ 15,379,000
STEEL STRUCTURE ERECTION MAN DIESEL & TURBO $ 22,837,075 $ 22,836,0
MATERIAL HANDLING FOUNDATIONS UNAWARDED $ 8,073,000 $ 8,073,000
ON-SITE SURVEY
SURVEY SERVICES UNAWARDED $ 5,488,000 $ 5,488,000

MATERIAL TESTING, INSPECTION &
SURVEILANCE UNAWARDED $ 1,378,000 $ 1,378,000
GEOTECHNICAL INVESTIGATION UNAWARDED $ 2,818,000 $ 2,818,000

ENGINEERING, PROJECT
MANAGEMENT MAN DIESEL & TURBO $ 27,660,000 $ 27,660,000
TOTAL $ 321,794,400 $ 1,735,000 $ 217,862,542 $ 541,391,942
Add 20% for Contingency : $ 108,278,388

Add 10% Developer’s Cost : $ 54,139,194
Other expenses (Compensation
for Preparation Works) : $ 18,190,476
SUBTOTAL POJECT less Agency,

Financial Service Commission
and other expenses : $ 722,000,000
Agency Commission Fee 3% : $ 22,800,000

Financial Services Fee 2% : $ 15,200,000
TOTAL PROJECT COST : $ 760,000,000
Page 40 of 240

Table 7-2. Net Cost of Electricity, Generated by CCPP 450MW
Description Unit Quantity

Installed Capacity 24 x 17,586 kW + 37,000 kW MW 459
Nominal Output Capacity MW 450
Reciprocated Gensets Output Capacity MW 422
Specific CAPEX US$/kW 1,656
Percentage of Equipment Cost % 42.3
Total Working Hours a Year hour 8,760
Utilization Ratio % 98
Total Actual Working Hours a Year hour 8,585
Total Electricity Generated kWh 3,863,250,000
Power Purchase Price (under PPA) US$/kWh .12
Revenue from Power Sales US$ 463,590,000
Fixed Expenses:
Headcount of Workers worker 320
Monthly Average Earnings US$/worker/month 1,100
Total Salary + 35% Social Benefits a year US$ 5,702,400
Environment US$ 300,000
Depreciation Cost 10% of basic equipment US$ 32,179,440
Current Maintenance & Repair 1% US$ 3,217,944
Total Fixed Expenses 41,399.784
Variable Expenses (Fuel Cost):

A. Liquid Fuel (HFO)
Engines Heat Rate: 7,658 kJ/kWh / 41,200 kJ/kg kg/kWh 0.186
HFO consumption a year Mt 718,565
HFO Purchase Price CIF Dar-es-Salaam + transportation
tariff to Dodoma US$/Mt 380 ±10%
Total HFO Cost US$ 273,054,700
B. Natural Gas Fuel
Engines Heat Rate: 7,427 kJ/kWh x 0.9478 Btu/kWh 7,039
NG Consumption a Year MMBtu 27,193,417
NG Purchase Price CIF Dodoma US$/MMBtu 6.30
Total Natural Gas Cost US$ 171,318,527
C. Lube Oil
Specific Lube Consumption kg/h 7.2
Lube Consumption a Year Mt 1,484
Lube Purchase Price CIF Dodoma US$/Mt 3,400 ± 10%
Lube Oil Cost US$ 5,045,600
Page 41 of 240

Table 7-2 (Continue)
Total Operation Expenses in HFO mode US$ 319,500,084

Net Income before tax US$ 144,089,916
OPEX/Revenue Ratio % 68.92
Electricity Net Cost US$/kWh .0827
Total Operation Expenses in NG mode US$ 217,763,911

Net Income before tax US$ 245,826,089
Electricity Net Cost US$/kWh .0564
VIII. PHASE 1. DIVISION “A”.

COMBINED CYCLE POWER PLANT 852 MW
8.1. Power Plant Solutions
The Combined-Cycle Gas-Fired Power Plant (CCPP) is chosen as the basic power producer
in this Project. Using advanced technology, CCPP produces electricity and captures waste
heat from the gas turbine to increase efficiency and electrical output.
CCPP is the most efficient method of adding electrical capacity to areas with an
abundance of natural gas, due to:
• Low capital cost

• Shorter construction time
• Low fuel cost
• Lower emissions
• High efficiency
Page 42 of 240

Fig. 8-1. Combined-Cycle Gas-Fired Power Plant 852 MW
SIEMENS source
How it works:
• Gas turbine burns fuel. The gas turbine compresses air and mixes it with fuel
that is heated to a very high temperature. The hot air-fuel mixture moves
through the gas turbine blades, making them spin.
The fast-spinning turbine drives a generator that converts a portion of the
spinning energy into electricity.
• Heat recovery system captures exhaust. A Heat Recovery Steam Generator

(HRSG) captures exhaust heat from the gas turbine that would otherwise
escape through the exhaust stack.
The HRSG creates steam from the gas turbine exhaust heat and delivers it to
the steam turbine. The HRSG creates steam from the gas turbine exhaust heat
and delivers it to the steam turbine.
Page 43 of 240

• Steam turbine delivers additional electricity. The steam turbine sends its
energy to the generator drive shaft, where it is converted into additional
electricity.
Fig. 8-2. Scheme of Combined Cycle Gas-Fired Power Plant
8.2. Scope of Supply
In brief, the scope of supply for each block of CCPP consists of the following major
equipment:
• Two (2) SGT5-2000E gas turbines for gaseous fuel operation, including auxiliaries;
• One (1) SST5-900 steam turbine, including condenser and auxiliaries;
• Three (3) SGen5-100A air-cooled gas turbine generators;
• Two (2) outdoor heat recovery steam generators (HRSG);
• Plant control systems SPPA-T3000;
• Electrical equipment;
• Auxiliary and ancillary equipment (Balance of Plant);
• Civil works (shallow foundation, no pilling)
Page 44 of 240

The EPC’s (SIEMENS) proposal included the engineering, procurement, construction,

erection, commissioning and handing over CCPP.
8.3. Description of Basic Equipment
SIEMENS series 2000E Gas Turbines are single-shaft machines of a single-casing design.
They are suitable both as prime movers for industrial machines and for driving generators
at constant speed in base load and peak load operation. These machines can be used in
simple cycle, combined cycle and district heat applications. They are suitable for operation
various gaseous and/or liquid fuels.
Fig. 8-3. Generic Cutaway View of Gas Turbine
No Designation No Designation
1 Compressor bearing housing 5 Rotor
2 Compressor 6 Turbine
3 Combustion chamber 7 Turbine bearing housing
4 Burners
Page 45 of 240

The performance value for the natural gas operation:

• Power Output for one block: 426 MW
• Efficiency (gross) 52.52%
The overall gas turbine is a compact unit which is completely assembled at the
manufacturing plant. This eliminates the need for adjusting clearances during field
assembly.
Fig. 8-4. SGT5-PAC 2000E Arrangement for CCPP
Page 46 of 240

The proposed Steam Turbine SST-900 is single casing turbine. The rotor is designed
with a double radial plus one axial bearing system. Due to reaction type an axial
bearing with balance piston is considered. Journal bearings are arranged at both
ends of the turbine. The turbine shaft is rigidly coupled to the generator by means
of integral forged flanges. The turbine is fitted with separate stop and control
valves for the steam admission.
The steam turbine is partly factory preassembled and shipped in modules for
convenient field erection.
Fig. 8-5. SST 900 Steam Turbine and Generator Set
A right coupling is located between the generator and the steam turbine and serves
to transmit the torque to the generator shaft. Turning of the STG set is realized by
hydro motor using lube oil with power from a packing/turning oil pump realized as
positive displacement pump.
Generator for the Gas and Steam Turbine (Air Cooled). The two-pole generators,
which are connected to the gas and steam turbine, are air-cooled. Indirect cooling
is provided for the stator winding. The rotor winding is direct radially cooled. Under
consideration of the magnetic requirements, the stator core is equipped with a
system of radial cooling ducts and acts as a heat sink for the stator winding. This
cooling system, together with the direct cooling system for the rotor winding,
ensures uniform and low temperature levels along the entire slots.
Page 47 of 240

Features of the generator:

• High efficiency;
• Post impregnation of stator winding;
• Low maintenance cost.
Condensing Plant and Cooling Water System. The air-cooled condenser condenses
the exhaust steam from the steam turbine and steam from the by-pass system
during start-ups. The ACC consists of a number of cooling cells, each comprising of
an “A”-shaped, finned tube bundles. The condensed steam is collected in the
condensate tank and will be brought back into the cycle by means of condensate
pumps.
The extraction of non-condensate gases is performed by steam ejectors. During
start-up both ejectors can be put in operation to reduce the evacuation time.
Heat Recovery Steam Generator (HRGS). The thermal energy from the gas turbine is
used to produce steam in the HRGS.
Downstream of the HRGS, the steam is directed to the steam turbine where
additional electricity is produced.
The steam is condensed in the air-cooled condenser. The condensate collected in

the condensate receiver tank of the air-cooled condenser is circulated back into the
water steam cycle by condensate extraction pumps. If necessary, the bypass
deaerator will provide condensate de-aeration by removing non-condensable gases
in the water/steam cycle during filling of the HRGS, start-up mode and when the
condensate quality needs to be maintained during normal operation.
The Power Plant is designed to ensure sufficient reliability of the plant’s auxiliary
power supply in all modes of operation, using very reliable and well proven
standardized equipment complying with VDE, IEC and DIN regulations.
The electrical equipment is designed to assure high quality of the power plant in all
modes of operation, using very reliable and well proven equipment.
The electrical equipment for all turbo sets and for the common auxiliaries are
arranged in container-type enclosures (Power Control Centre PCC) which are pre-
assembled and factory tested.
The generator transformers and unit auxiliary transformers are located outdoors.
The low voltage transformers are installed within separate enclosures outside the
PCCs.
Page 48 of 240

Fig. 8-6. Section of Heat Recovery Steam Generator (HRSG)
The isolated Phase Bus Duct (IPB) transmits the electrical power from the generator
to the generator transformer as well as to the branches for the unit auxiliary
transformer (only GT units) and the execution transformer (only ST unit).
8.4. Plant layout
The main bay of the turbine building is one compact structural-steel building of
simple rectangular design, which houses the gas turbine in transverse arrangement
and the steam turbine and its generator in longitudinal arrangement.
Special care will be taken to design the plant to enable quick removal and
dismantling of the noise and weather enclosure. The components must be taken to
existing workshop for maintenance, as required.
Page 49 of 240

Two overhead cranes run the full length of the main bay of the building. They are
capable to lift all the heavy equipment during erection, as well as parallel
maintenance activities to reduce maintenance outage durations. An additional small
crane in each annex further increases maintainability and reduces downtime.
Preliminary drafted layout for power block is shown below.
Fig. 8-7. Layout of Power Plant 852 MW
The evaluation of this Project Component below is based on the estimated capital
cost, provided by EPC, pre-negotiated electricity purchase prices and fuel market
prices on the date of this Study is drafted. It is assumed, that:
• The real construction cost of the EPC Contract will be in ±5% of estimated;
Agreement.
The Estimated Project Budget, including Equipment, Construction Materials and

Labor referred in the Table 8-1 below.
Page 50 of 240

Table 8-1. Phase 1. Division “A”. Estimated CCPP 852 MW Project Budget,
including Equipment, Construction Materials and Labor

Equipment Services
SGT5-2000E POWER ISLAND. BASE all items below x 2 $ 157,371,067 $ 314,742,134 $ 314,742,134
EQUIPMENT PACKAGE
GAS TURBINE SGT5-2000E SIEMENS
AIR INTAKE/EXAUST SYSTEM SIEMENS

FUEL GAS SYSTEM: SKIDS,
CONNECTING PIPES SIEMENS
GAS TURBINE AIR-COOLED
GENERATOR Sgen5-1000A 50 Hz SIEMENS
FIRE PROTECTION GT SIEMENS
GT-ELECTRICAL AND I&C SIEMENS
THERMAL EQUIPMENT: CONDENSER, SIEMENS

HRSG
STEAM TURBINE SST5-900 SIEMENS
STEAM TURBINE AIR COOLED SIEMENS

GENERATOR Sgen5-1000A 50 Hz
ST ELECTRICAL AND I&C SIEMENS
CONDENCER AND AIR REMOVAL SIEMENS

SYSTEM
BOILER FEED WATER PUMPS SIEMENS
CONDENSATE PUMP SIEMENS
CRITICAL VALVES SIEMENS
POWER ISLAND CONTROL SIEMENS
FUEL PRE-HEATER WITH FILTERS, SIEMENS

METERING STATIONS ETC.
EXHAUST GAS STACK SIEMENS
SGT5 POWER ISLAND STUCTURES all items below x 2 $ 67,700,000 $ 135,400,000 $ 135,400,000
BUILDING, STRUCTURES SIEMENS
TURBINE HULL CRANES AND HVAC SIEMENS
PLANT COOLING SYSTEM SIEMENS
WATER TREATMENT SIEMENS
RAW WATER SYSTEM SIEMENS
WASTEWATER SYSTEM SIEMENS
TANKS SIEMENS
PLANT PIPING SIEMENS
PLANT CONTROL SYSTEM SIEMENS
DOUBLE FIRE FIGHTING SYSTEM SIEMENS
OTHER EQUIPMENT One unit package
GAS DISTRIBUTION SYSTEM SIEMENS $ 9,950,000 $ 9,950,000
Page 51 of 240

LUBE DISTRIBUTION SYSTEM SIEMENS $ 6,930,000 $ 6,930,000
DISTRIBUTED CONTROL SYSTEM SIEMENS $ 5,065,678 $1,000,000 $ 6,065,678

FACILITIES UNAWARDED $1,380,000 $ 290,000 $ 1,670,000
CONSTRUCTION CONTRACTS One unit package
TURBO GENSETS INSTALLATION SIEMENS $ 50,680,000 $ 50,680,000

HEAT RECOVERY STEAM
GENERATOR (HRSC) INSTALLATION SIEMENS $ 33,776,000 $ 33,776,000
AND TESTING
AND INSULATION SIEMENS $ 20,353,000 $ 20,353,000
INSTALLATION SIEMENS $ 14,644,000 $ 14,644,000
SITE PREPARATION - POWERBLOCK SIEMENS $ 13,566,000 $ 13,566,000

WATERHOUSE SIEMENS $ 21,395,000 $ 21,395,000
POWER HOUSE FOUNDATIONS UNAWARDED $ 25,752,296 $ 25,752,296
CHIMNEYS INSTALLATION SIEMENS $ 12,160,000 $ 12,160,000

STEEL STRUCTURE ERECTION UNAWARDED $ 27,990,000 $ 27,990,000
ON-SITE SURVEY One unit package


MANAGEMENT WORLEY PARSONS $ 38,317,460 $ 38,317,460
TOTAL $473,467,812 $ 1,290,000 $ 330,370,393 $ 805,128,205
Add 20% for Contingency: $ 161,025,641

Add 10% Developer’s Cost: $ 80,512,821
Other expenses (Compensation for Preparation Works): $ 17,333,333

Financial Service Commission and other expenses: $ 1,064,000,000
Agency Commission Fee 3% $ 33,600,000

Financial Services Fee 2%: $ 22,400,000
TOTAL PROJECT COST: $ 1,120,000,000
Page 52 of 240

Table 8-2. Net Cost of Electricity, generated by CCPP 852 MW

Installed Capacity: 2 x blocks SGT-PAC 2000E (2+1)
426 MW each MW 852
Nominal Output Capacity MW 850
Specific CAPEX $/kW 1,315
Plant Gross Efficiency (NG mode) % 52.52
Power Purchase Price (under PPA) $/kWh .12
Revenue from Power Sales $ 875,670,000
Fixed Expenses:
Monthly Average Earnings $/worker/month 1,100
Total Salary + 35% Social Benefits $ 12,295,800

Environment $ 720,000
Depreciation Cost 10% (basic equipment) $ 47,346,781
Current Maintenance & Repair 1% $ 4,734,648
Total Fixed Expenses 65,097,229
Variable Expenses (Gas Fuel Cost):

Turbine Heat Rate: 7,426 kJ/kWh x 0.9478 Btu/kWh 7,038
NG Purchase Price at City Gate in Dodoma $/MMBtu 6.30
Total Fuel Cost $ 323,555,690
Total Operation Expenses $ 388,652,919

Net Income (before tax) $ 487,017,081
Electricity Net Cost $/kWh .0533
Page 53 of 240

IX. PHASE 2. DIVISION “A”.

COMBINED CYCLE POWER PLANT 1,704 MW
9.1. Objective
Proposed 1,704 MW Combined-Cycle Gas-Fired Power Plant is the part of State
Industrialization Program, which provides for power generation development and
replenishment of power deficite for large and strategically important enterprises,
whose construction is constrained due to the lack of powerful and reliable sources of
electricity. Among them are such consumers as:
• Heated crude pipeline from Oil Fields in Uganda to the seaport of Tanga
(Tanzania) with a capacity of 260,000 barrels per day (TOTAL, France);
• Electrification of the Dar-es-Salam-Morogoro railway;
• Acacia (Barrick) Nickel and gold (mining and processing);
• ASHANTI Geita Gold Mining (mining and processing);
• Philip Morris (USA) Universal Tobacco of Morogoro;
• DIMON Tobacco Ltd,
• Prime Leaf Tobacco Ltd,
• Shugar Processing Plant in Mtibwe and Kilombero, etc.
As already mentioned, all stakeholders are ready to provide letters of intent and
relevant guarantees for the purchase of electricity.
The construction of the facility also will give a powerful impetus to the development of
medium and small enterprises, will provide employment for the able-bodied population
and increase its purchasing power.
The GOT also planning to export power for neighbours. Thus, Uganda willing to sign the
MOU and provide guarantee for import 7,000 GWh from Tanzania. Kenya going to
import a minimum of 8,800 GWh per annum and recently have sent appropriate
request to the GOT.
Taking in account, that Mozambique, SA, Rwanda, Burundi and Zambia mostly relied on
Hydropower sources, which have challenge due to climat change, the power generation
for the export is expremally actual for African governments.
Page 54 of 240

9.2. Power Plant Solution

This CCPP 1,704 MW is intended as base-load generator for performance in chain with
CCPP 450 MW (peak load generator). The location of facility in Shinyanga chosen in
terms of the following factors:
• The place is most close to the main consumers and importers;

• Shinyanga town is administrative centre of the same-name province;
• ROW of proposed main gas pipeline is passing thru;
• Existing railway and paved roads are available
The Power Plant will be connected to:
• AC existing grid by the step-up transformer substation 139 and 220 kV;
• Allocated HVDC Transmission Line 400 kV by AC/DC Converter Station in
Shinyanga for export electricity to Uganda.
The facility consists in four (4) SIEMENS Combined Cycle Blocks with SCC5-2000E (2+1)
configuration comprising the following components:
• Eight (8) SIEMENS Gas turbine generator sets SGT5-PAC 2000E including gas
turbine, air intake system, gas eshaust system and associated auxilary systems;
• Four (4) SIEMENS Steam turbine generator sets and auxiliary systems;
• Eight (8) natural circulation heat recovery steam generators (HRSG) with gas
ductwork and stack;
• Mechanical BoP systems like feedwater, condensate- and cooling systems,
auxiliary and anciliary systems;
• Four (4) Air cooled condensers (ACC);
• Demineralization Plant with storage tank and distribution system;
• Electrical BoP system, generator bus ducts, generator breakers, generator ubit
transformers;
• The SIEMENS Power Plant Automation System including Control Room
equipment;
• Automatic fire protection system.
The basic equipment, applied in this facility is the same as in CCPP 740 MW.
However, the performance value for the gas operation is higher than with dual fuel:
• Power Output for one block: 426 MW

• Efficiency (gross) 52.52%
Page 55 of 240

Fig. 9-1. Combined Cycle Power Plant 1,704 MW
The advantages of this design is:
• Modularised power blocks consists in 90% of prefabricated parts and aggregates

which simplify its assembling and maintenance;
• Applied equipment is the same as in CPPP 740 MW (Phase 1) and specification of
supplied spare pars is similar;
• The size of applied equipment is easier for delivery using existing roads limits;
• The flexibility of responding to power demand changes within a short period of
time.
The evaluation below is based on the estimated capital cost, provided by EPC, pre-
negotiated electricity purchase prices and fuel market prices on the date of this
Study is drafted. It is assumed, that:
• The real construction cost of the EPC Contract will be in ±5% of estimated;
Agreement.
The Estimated Project Budget, including Equipment, Construction Materials and

Labor referred in the Table 9-1 below.
Page 56 of 240

Table 9-1. Phase 2. Division “A”. Estimated Project Budget, including Equipment,
Construction Materials and Labor

Equipment Services
SGT5-2000E POWER ISLAND. BASE all items below x 4 $ 157,371,067 $ 629,484,268 $ 629,484,268
EQUIPMENT PACKAGE
GAS TURBINE SGT5-2000E SIEMENS
AIR INTAKE/EXAUST SYSTEM SIEMENS

FUEL GAS SYSTEM: SKIDS,
CONNECTING PIPES SIEMENS
GAS TURBINE AIR-COOLED
GENERATOR Sgen5-1000A 50 Hz SIEMENS
FIRE PROTECTION GT SIEMENS
GT-ELECTRICAL AND I&C SIEMENS
THERMAL EQUIPMENT: CONDENSER, SIEMENS

HRSG
STEAM TURBINE SST5-900 SIEMENS
STEAM TURBINE AIR COOLED SIEMENS

GENERATOR Sgen5-1000A 50 Hz
ST ELECTRICAL AND I&C SIEMENS
CONDENCER AND AIR REMOVAL SIEMENS

SYSTEM
BOILER FEED WATER PUMPS SIEMENS
CONDENSATE PUMP SIEMENS
CRITICAL VALVES SIEMENS
POWER ISLAND CONTROL SIEMENS
EXHAUST GAS STACK SIEMENS
SGT5 POWER ISLAND STUCTURES all items below x 4 $ 67,700,000 $ 270,800,000 $ 270,800,000
BUILDING, STRUCTURES SIEMENS
TURBINE HULL CRANES AND HVAC SIEMENS
PLANT COOLING SYSTEM SIEMENS
WATER TREATMENT SIEMENS
RAW WATER SYSTEM SIEMENS
WASTEWATER SYSTEM SIEMENS
TANKS SIEMENS
PLANT PIPING SIEMENS
PLANT CONTROL SYSTEM SIEMENS
DOUBLE FIRE FIGHTING SYSTEM SIEMENS $ 19,900,000 $ 19,900,000
LUBE DISTRIBUTION SYSTEM SIEMENS $ 13,860,000 $ 13,860,000
DISTRIBUTED CONTROL SYSTEM SIEMENS $ 10,131,356 $1,000,000 $ 11,131,356
Page 57 of 240

FACILITIES UNAWARDED $2,760,000 $ 580,000 $ 3,340,000
CONSTRUCTION CONTRACTS One unit package
TURBO GENSETS INSTALLATION SIEMENS $ 91,360,000 $ 91,360,000

HEAT RECOVERY STEAM
GENERATOR (HRSC) INSTALLATION SIEMENS $ 67,552,000 $ 67,552,000
AND TESTING
AND INSULATION SIEMENS $ 35,706,000 $ 35,706,000
INSTALLATION SIEMENS $ 28,288,000 $ 28,288,000
SITE PREPARATION – POWER BLOCK SIEMENS $ 24,132,000 $ 24,132,000

WATERHOUSE SIEMENS $ 38,790,000 $ 38,790,000
POWER HOUSE FOUNDATIONS UNAWARDED $ 51,504,296 $ 51,504,296
CHIMNEYS INSTALLATION SIEMENS $ 24,320,000 $ 24,320,000

STEEL STRUCTURE ERECTION UNAWARDED $ 52,980,000 $ 52,980,000
ON-SITE SURVEY One unit package


MANAGEMENT WORLEY PRSONS $ 76,492,360 $ 76,492,360
TOTAL $ 946,935,624 $ 1,580,000 $ 633,169,358 $1,581,684,982

Other expenses (Compensation for Preparation Works): $ 14,809,524

Financial Service Commission and other expenses: $ 2,071,000,000
Agency Commission Fee 3% $ 65,400,000

Page 58 of 240

Table 9-2. Net Cost of Electricity, generated by CCPP 1,704 MW

Installed Capacity: 4 x blocks SGT-PAC 2000E (2+1)
426 MW each MW 1,704
Nominal Output Capacity MW 1,700
Specific CAPEX $/kW 1,279
Plant Gross Efficiency % 52.52
Power Purchase Price (under PPA) $/kWh .12
Revenue from Power Sales $ 1,787,040,000
Fixed Expenses:
Headcount of Workers worker 1,150
Monthly Average Earnings $/worker/month 1,100
Total Salary + 35% Social Benefits $ 20,493,000

Environment $ 1,400,000
Depreciation Cost 10% (basic equipment) $ 94,693,562
Total Fixed Expenses 126,055,918
Variable Expenses (Gas Fuel Cost):

Turbine Heat Rate: 7,426 kJ/kWh x 0.9478 Btu/kWh 7,038
NG Purchase Price in Shinyanga $/MMBtu 8.00
Total Fuel Cost $ 838,479,168
Total Operation Expenses $ 964,535,086

Electricity Net Cost $/kWh .0648
Page 59 of 240

X. GAS PRODUCTION OVERWIEV
10.1. Natural Gas Reserves
East Africa is a new hotspot in hydrocarbon exploration after substantial deposits

of oil were found in Uganda and major gas reserves discovered in Tanzania and
Mozambique.
Most of the gas discoveries in Tanzania were made in deep-sea offshore blocks
south of the Country near the site of a planned liquefied natural gas (LNG) plant.
BG Group, acquired by Royal Dutch Shell, along with Statoil, Exxon Mobil and Ophir
Energy plan to build the onshore LNG export terminal in the southern Tanzanian
town of Lindi in partnership with state-run Tanzania Petroleum Development Corp
(TPDC).
Table 10-1. Tanzania Natural Gas Reserve

Proven-Reserve Probable-Resource
Tscf Tscf
Category Gas fields P90 P50
P1 P1+P2
Songo Songo 0.88 2.5
Mnazi Bay 0.262 2.5
Mkuranga 0.2
Land/Shallow Water Nyuni 0.045 0.07
Ruvuma 0.178
Ruvu 2.17
Subtotal: 1.187 10.118
Block 2 25.4
Deep Water Block 1, 3 & 4 21.73
Subtotal 47.25
Total: 57.25
TPDC sources
Page 60 of 240

The most significant operational onshore/offshore reserves are:
• Songo Songo basin: Proven+Probable+Possible Reserves: 880 bscf;

• Manzi Bay basin: Proven+Probable+Possible Reserves: 862 bscf
On February, 2016 Tanzania has discovered an additional 2.17 trillion cubic feet
(tcf) of possible natural gas deposits, raising the east African nation's total
estimated recoverable natural gas reserves to more than 57 tcf.
The onshore reserves were found at a field licensed to the United Arab Emirates'
Dodsal Group located at Ruvu basin in Coast region, near the Country's commercial
capital, Dar-es-Salaam.
Wentworth, the Oslo Stock Exchange (OSE: WRL) and AIM (AIM: WRL) listed
independent, East Africa-focused oil & gas company, on February 2016 is
announced the results of an independent evaluation of the gas reserves within the
Mnazi Bay Concession in Tanzania, carried out by RPS Energy Canada Ltd. ("RPS"),
Calgary, Canada on behalf of Maurel et Prom (Operator) and Wentworth
Resources.
With Mnazi Bay gas assets now on-stream, and production from the existing gas
fields increasing to meet the current gas demand, the existing reserves provide a
solid foundation to grow production from the Mnazi Bay concession.
These assessments are made in accordance with the standard defined in the
SPE/WPC Petroleum Resources Management System (2007) and the Canadian Oil
and Gas Evaluation Handbook ("COGEH").
Below is Reserve Summary for Mnazi Bay as at December 31, 2015:
Table 10-2. Mnazi Bay Gas Reserves
Gross Reserves
Reserve Category Sales Gas (Bscf) BOE (MMbl)
Proved Developed Producing Reserves (PDP) 157.9 26.3

Proved Reserves (1P) 336.2 56.0
Proved + Probable Reserves (2P) 567.1 94.5
Proved + Probable + Possible Reserves (3P) 861.8 143.6
TPDC source
Page 61 of 240

10.2. Gas Production
Existing Industrial and Power sector demand is lower than it might be owing to
delays commissioning the new Kinyerezi power plant and the conversion of the
Ubungo power plant from diesel to gas. Due to undeveloped gas/electricity
transportation system, a several large projects, such as Gold Processing Plant,
Steel, Copper, Ammonia and other industrial entities are still on pending. These
plants are expected to become fully operational on 2021-202.
Table 10-3. Gas fields Production Projection
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
№ GAS FIELDS
GAS PRODUCTION MMscfd
01 MNAZI BAY 101 130 130 150 150 150 150 150 150 150
02 SONGO SONGO I ADDITIONAL 108 172 186 186 186 186 186 186 186 186
03 SONGO SONGO I PROTECTED 42 42 42 42 42 42 42 42 42 42
04 KILLWANI 20 20 20 20 20 20 20
05 NTORYA 24 24 24 24 24 24 24 24
06 MKURANGA 12 12 12 12 12 20 20 20
07 RUVU 120 120 120 120 120 120
08 TOTAL ONSHORE PRODUCTION 271 364 414 434 554 554 554 542 542 542
09 PROCESSING CAPACITY 490 490 490 490 490 490 1,680 1,680 1,680 1,680
10 DEEP OFFSHORE PRODUCTION 300 350 400 480 620 800
11 TOTAL PRODUCTION PROJECTED 271 364 414 434 854 904 954 1,022 1,162 1,342
TPDC source
The new built pipeline from Mnazi Bay to Dar-es-Salaam is now expected to carry
up to 800 MMscfd in Q1 on 2017 and thereafter remain consistent throughout
2019, with the potential for a further increase in volumes depending on demand.
The Mnazi Bay and Songo Songo gas wells are more than capable of meeting
expected demand so no new development wells are planned for 2019, but
operators plans to align exploration activities in the both concessions with gas
demand growth within Tanzania.
Page 62 of 240

Fig. 10-1. Map of Existing Onshore Gas Production
Page 63 of 240

Natural Gas from Mnaiz Bay is high-calorific, “sour” (low-sulphur) gas.

Below is extraction from Report, provided by Maurel et Prom, contained basic
parameters of fuel:
Table 10-4. Mnazi Bay Gas Compositions
Source: Maurel et Prom

Page 64 of 240

10.3. Gas Demand
Table 10-5 shows the Gas Demand, computed based on Construction Agreements,
licenses and permissions provided to relevant Project owners in Tanzania.
Table 10-5. Long-term Gas Demand Forecast for Power Generation
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
№ CONSUMERS CONTRACT
GAS DEMAND MMscfd
01 Songas Plants UGT 1-5 80% PG 36 36 36 36 36 36 36 36 36 36
02 Songas Plants UGT 6 20% AG 10 10 10 10 10 10 10 10 10 10
03 Somanga Fungu Plant Village electr. 3 3 3 3 3 3 3 3 3 3
04 TANESCO Ubungo I PGSA 24 24 24 24 24 24 24 24 24 24
05 TANESCO Tegeta Plant PGSA 11 11 11 11 11 11 11 11 11 11
06 Symbion Site “B” PGSA 6 6 6 6 6 6 6 6 6 6
07 Mtwara Plant MEP 5 5 5 5 5 5 5 5 5 5
08 TANESCO Ubungo II TPDC/GASCO 30 30 30 30 30 30 30 30 30 30
09 Symbion Site “A” TPDC/GASCO 30 30 30 30 30 30 30 30 30 30
10 Kinyrezi-1 TPDC/GASCO 36 36 36 36 36 36 36 36 36 36
11 Kinyrezi-1 Extension TPDC/GASCO 45 45 45 45 45 45 45 45 45
12 Kinyrezi-2 (Sumitomo) TPDC/GASCO 22 44 44 44 44 44 44 44 44
13 KAMAL Power Plant TPDC/GASCO 30 52 52 52 52 52 52 52 52
14 IPTL Phase (Existing) TANESCO 12 24 24 24 24 24 24 24 24
15 IPTL Phase-I TANESCO 24 24 24 24 24 24 24 24
16 Kinyrezi-3 TPDC/GASCO 36 54 54 54 54 54 54 54
17 Kilwa Energy TPDC/GASCO 42 67 67 67 67 67 67 67
18 Kinyrezi-4 TPDC/GASCO 72 72 72 72 72 72 72 72
19 Symbion Mtwara TPDC/GASCO 48 96 145 145 145 145 145 145
20 IPTL Phase-II TANESCO 72 72 72 72 72 72 72
21 CCPP 450MW Dodoma PV/TANESCO 70 70 70 70 70 70
22 CCPP 852 MW Dodoma PV/TANESCO 140 140 140 140 140 140
23 CCPP 1,704MW
Shinyanga 281 281 281 281 281 281
TOTAL DEMAND 191 300 578 741 1,281 1,281 1,281 1,281 1,281 1,281
TPDC source
Page 65 of 240

Table 10-6. Long-term Gas Demand Forecast for Residential and Industrial
Consumption
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
№ CONSUMERS CONTRACT
GAS DEMAND MMscfd
01 Existing Industr.37 +
Households CNG PGSA 10 10 10 10 10 10 10 10 10 10
02 Wazo Hill Protected PG 3 3 3 3 3 3 3 3 3 3
03 Wazo Hill Additional PGSA 7 7 7 7 7 7 7 7 7 7
04 Dar-Ring Main TPDC GSA 12 18 24 24 24 24 24 24 24
05 Lindi-Mtwara-Ring
Main TPDC GSA 3 6 8 12 12 12 12 12 12
06 Goodwill Ceramic F.Z.E.
Mkuranga TPDC GSA 8 8 12 12 12 12 12 12 12 12
07 Jakinda Ceramic
Mkuranga TPDC GSA 3 3 3 3 3 3 3 3 3 3
08 Dangote TPDC GSA 36 45 45 50 50 50 50 50 50 50
09 Dar Airport Terminal 3 TPDC GSA 10 10 10 10 10 10 10 10 10 10
10 CocaCola TPDC GSA 2 2 2 2 2 2 2 2 2 2
11 Bidco TPDC GSA 3 3 3 3 3 3 3 3 3 3
12 Ferrostaal TPDC GSA 128 128 128 128 128 128
13 Helm Ammonia TPDC GSA 96 96 96 96 96 96
14 Helm Ammonia/Urea TPDC GSA 149 149 149 149 149 149
15 Helm Methanol TPDC GSA 175 175 175
16 Msalato Airport,
Dodoma TPDC / PV 10 10 10 10 10 10 10
17 City Consumption
Dodoma TPDC / PV 75 100 125 150 175 200 225
TOTAL DEMAND 62 62 124 217 619 644 669 869 894 919
TPDC source
XI. PHASE 1 & PHASE 2. DIVISION “B”. NATURAL GAS PIPELINES
IXIX. GAS PRODUCTION OVERWIEV. GAS PRODUCTION OVERW

11.1. Objective
The Gas Pipeline Project Component is expected to have considerable effect on the
areas traversed by it. Projected Gas Pipeline, as reliable and cost-effective way of
energy transportation, have a following destination:
Page 66 of 240

• to supply natural gas for power generation, for function of urban

infrastructure at Metropolitan City of Dodoma;
• to provide piping natural gas for households use within Dodoma and raise
life standard of local population;
• to delivery NG to Uganda and Kenya under inter-government agreements
and generate significant income from NG export to Uganda;
• to build a small-scale liquefied natural gas (LNG) plants in Dodoma, Arusha
and Shinyanga and supply LNG for households, major industrial and
commercial end-users within rural remote areas: Iringa, Tanga, Arusha,
Shinyanga and Mwanza and, thus to protect the forest in this areas from
total destruction;
• to create thousands of new working places within central regions and
provide significant economic grows.
Following by the Energy Complex development strategy and energy market

growth, this Project Component will be executed in three Phases:
Phase 1: Construction and operation pipeline 470 km from injection station in

Kinyerezi (Dar-es-Salaam) to the City gate in Dodoma. This pipeline will be
connected to CCPP 450 MW and CCPP 852 MW located in Dodoma, which will
decrease operation expenses of power generation up to 47%, as compared with
HFO operation.
The large diameter 42" will provide designed gas flow up to 1,500 MMscfd and
will cover gas demand for Phase 2 and Phase 3 (see Table 11-1).
Phase 2: Construction and operation pipeline Dodoma - Shinyanga -

interconnection station at the Tanzania/Uganda border. The section Dodoma -
Shinyanga have diameter 36", length 538 km and gas flow capacity up to 800
MMscfd which is to provide gas for CCPP 1,704 MW in Shinyanga and transit to
Uganda.
The section Shinyanga - Uganda have nominal diameter 24", length 566 km and
transit gas flow capacity up to 400 MMscfd.
Total length of Phase 2 gas pipeline is 1,104 km.
Phase 3 includes: a) Construction and operation of pipeline 20" diameter, length

533 km and gas flow capacity up to 280 MMscfd for supply feedstock for LNG in
Arusha and export NG to Kenya;
b) Construction and operation of three small-scale LNG plants in Dodoma, Arusha
and Shinyanga. Description of Phase 3 is not included in this Study.
Page 67 of 240

Fig. 11-1. Map of Proposed Gas Network
PROJECTED GAS
PIPELINES
LNG PLANT
PHASE 1
PHASE 2
PHASE 3
Page 68 of 240

Table 11-1. Project Gas demand
Households
Power LNG Demand Export
Generation Number of LNG for Social and
Item Consumer & Users (80% Demand Commercial
№№ Industrial Population Service
Sector in adjacent metric ton metric ton
areas) to a day (mtd) a day (mtd)
MMscfd 2025 MMscfd MMscfd MMscfd
PHASE 1
01 CCPP 450MW in Dodoma 70
02 CCPP 852MW in Dodoma 140
03 Total 210
04 Total, Phase 1 210 / 2.06
PHASE 2
04 Export to Uganda 150+160=310
05 CCPP 1,704 MW
in Shinyanga 281
07 Urban Gas Distribution
Network in Dodoma 900,000 23 40
08 Total 281 23 40 310
Total, Phase 2 654 / 6.41
PHASE 3
11 Export to Kenya (Nairobi) 130+50=180
418 84
Mini-LNG Plant in Dodoma 8,136,000 24 5
220 44
12 Mini-LNG Plant in Arusha 4,280,000 13 3
955 191
13 Mini-LNG Plant in Shinyanga 18,592,000 54 11
14 Urban Gas Distribution
Network in Dodoma 90 30 40
15 Total 90 121 59 180
Total, Phase 3 450 / 4.41
16 TOTAL, PHASE 1+2+3
MMscfd / bcma 1,314 / 12.88
Page 69 of 240

11.2. Technical Description of the Project
Proposed Project Component provides fully automated pipeline operations

demand ultimate dependability from all employed rotating and electrical
equipment. Innovative design, excellence in engineering, maximum lifetime value
as well as ultimate compliance with health, safety, environmental and industry
standards are common denominators for all components, products, systems and
services applied in this Project.
Pipeline design
For large-diameter pipes, from 20 to 42 inches in diameter, the pipes are produced
from sheets of metal that are folded into a tube shape, and the ends are welded or
fused together to form a pipe section.
Pipelines are buried underground; the standard burial depth is 1 meter to the top of
pipe but varies depending on the local geography along the pipeline route.
Coating mills apply pipe coatings to ensure that the pipe does not corrode once
placed in the ground. The purpose of the coating is to protect the pipe from
moisture, corrosive soils, and construction-induced defects, which cause corrosion
and rusting. In the past, pipelines were coated with a specialized coal tar enamel.
Today, pipes are protected with a fusion-bond epoxy or extruded polyethylene, both
of which give the pipes a noticeable light yellow color. In addition, cathodic
protection is used, which is a technique that involves inducing an electric current
through the pipe to ward off corrosion and rusting (AGA 2004).
Compressor Stations
Natural gas is highly pressurized as it travels through pipeline to expedite the flow
of gas. To ensure that the natural gas flowing through pipeline remains pressurized,
compression of the natural gas occurs periodically along the pipe. This is
accomplished by compressor stations, which are usually placed at 80 to 110-
kilometers intervals along the pipeline. The natural gas enters the compressor
station, where it is compressed by turbine.
Turbine compressors gain their energy by using up a small proportion of the natural
gas that they compress. The turbine itself serves to operate a centrifugal
compressor, which contains a type of fan that compresses and pumps the natural
gas through the pipeline.
Page 70 of 240

In addition to compressing natural gas, compressor stations contain liquid

separator, much like those used to dehydrate natural gas during its processing.
These separators consist of scrubbers and filters that capture any liquids or
undesirable particles from the natural gas in the pipeline. Although natural gas in
pipelines is considered a dry gas, it is not uncommon for a certain amount of water
and hydrocarbons to condense out of the gas stream while in transit. The liquid
separators at compressor stations ensure that the natural gas in the pipeline is as
pure as possible, and usually filter the gas prior to compression.
Fig.11-2. Scheme of Gas Compressor Station
Compressor stations are powered by compressors that are each rated at several
thousand horsepower (hp). The stations contain valves, pipes, and control systems
that monitor the functioning and operating parameters of the system. All
compressor stations are fully automated. Figure 11-3 provides an aerial view of a
natural gas pipeline compressor station along a major transmission pipeline system.
The compressors are typically housed in a metal building with pipe appurtenances
and other critical elements above ground. All electrical fittings within the metal
building are explosion-proof. These stations are monitored or controlled by
Supervisory Control And Data Acquisition (SCADA) systems.
Page 71 of 240

Compressor station facilities are sited on 18 to 22 acres of land and include an all-
weather gravel access road, the compressor building, cooling fans, a control
building, and two or three small auxiliary buildings. The compressor building as well
as the piping and equipment are acoustically designed to keep noise to a minimum
and are constructed using explosion-proof electrical fittings.
Fig. 11- 3. View on Large Gas Compressor Station
A natural gas compressor station generates noise on a continuous basis during

operations. However, the noise levels attributable to operations of new compressor
stations would not result in significant effects on individuals nearest to the facilities.
A typical compressor station houses the gas turbine compressor package as well as
the instrumentation controls and equipment required to monitor and operate the
engines and compressors. Compressor stations are enclosed by a chain-link fence,
and most have some type of additional security equipment such as cameras and
motion sensors.
Page 72 of 240

Fig.11-4. Modular Gas Compressor Station
SIEMENS source
Natural gas piping, both aboveground and belowground, associated with the
installation of the interconnections, metering stations, and pigging facilities at a
compressor station are installed and pressure-tested using methods similar to those
used for the main pipeline. After testing is successfully completed, the piping is tied
into the main pipeline. Piping installed below grade is coated for corrosion
protection prior to backfilling. In addition, all below-grade facilities are protected by
a cathodic protection system. Before being put into service, compressors, controls,
and safety devices are tested to ensure proper system operation and the activation
of safety mechanisms (including disaster automatic or manual shutdown), as
necessary (CEC 2007).
Other major equipment installed at each site includes aerial gas coolers, fuel gas
skids, the motor control center (MCC) and control building skids, logic control
module (LCM) skids, and filter houses. The EPC contractor typically works on
concrete foundations; pipe fabrication; and pipe, equipment, and structural steel
installation and instrumentation. Subcontracted work includes piling; reinforcing
steel; earthwork; electrical work; structural steel fabrication; heating, ventilating,
and air conditioning; insulation; pipe coatings and painting; and pre-engineered
buildings.
Page 73 of 240

Metering Stations
Metering stations are placed periodically along natural gas pipelines. These stations
allow Developer to monitor, manage, and account for the natural gas in their pipes.
Essentially, these metering stations measure the flow of gas along the pipeline,
allowing to track natural gas as it flows along the pipeline. Metering stations employ
specialized meters to measure the natural gas as it flows through the pipeline
without impeding its movement. In essence, the metering station is the Developer's
"cash register."
Meter/regulator stations are generally constructed adjacent to the cleared pipeline
right-of-way (ROW) at each of the receipt and interconnect points to meter the flow
and adjust the pressure of natural gas received from or delivered to those systems.
A meter/regulator station includes meter and regulator equipment, a filter
separator, odorant equipment, and a control building housed within a fenced
perimeter.
City Gate Stations
The natural gas for distribution systems is received from transmission pipelines and
fed through one or more city gate stations (tap stations). The basic function of these
stations is to meter the gas and reduce its pressure from that of the pipeline to that
of the distribution system. The latter operates at a much lower pressure (reduced
from approximately 500-1,450 psig to about 0.25-300 psig).
City gate stations measure the gas flow with metering devices and reduce its
pressure with pressure regulators. These devices control the rate of gas flow and/or
pressure through the station and maintain the desired pressure or flow level in the
distribution system. Gas received at city gate stations must contain odorant, the
compound that gives odorless natural gas its distinctive smell. The odorant
concentration is normally three-quarters of a pound per 1 MMscf of natural gas.
Valves
Interstate pipelines include a great number of valves along their entire length. These
valves work like gateways; they are usually open and allow natural gas to flow freely,
but they can be used to stop gas flow along a certain section of pipe. There are many
reasons why a pipeline may need to restrict gas flow in certain areas, including for
emergency shutdown and maintenance. For example, if a
section of pipe requires replacement or maintenance, valves on either end of that
section of pipe can be closed to allow engineers and work crews safe access. These
Page 74 of 240

large valves should be placed every 20 kilometers along the pipeline, and are subject
to regulation by safety codes.
A mainline valve site consists of a 12 x 12 m area surrounded by a chain-link fence

within the confines of the permanent pipeline ROW. Aboveground elements of each
mainline valve site include the piping with its valving that extends above ground for
blowoffs (including blowdown stacks, with some sites having permanent silencers
attached for noise abatement) and bypass. The mainline valves appear as a small
fenced area within a cleared ROW unless the site is in an open field.
Pig Launching/Receiving Facilities
Pigging facilities consist of pig launching or receiving equipment and allow the
pipeline to accommodate a high-resolution internal inspection tool. Pigs are devices
that are placed into a pipeline to perform certain functions. Some are used to clean
the inside of the pipeline or to monitor its internal and external condition. Launchers
and receivers are facilities that enable pigs to be inserted into or removed from the
pipeline.
A pigging facility is smaller than a typical compressor station site, but is twice the
size of a valve site. It equipped with an office, workshops, a small permanent camp
(in remote locations), power generators, storage areas, and a helipad. It is
unmanned except during periods of manual pigging and during routing service or
repair.
SCADA Centers
To manage the natural gas that enters the pipeline and ensure that all customers
receive timely delivery of their portion of this gas as well as to accomplish the task
of monitoring and controlling the natural gas that is traveling through the pipeline,
centralized gas control stations collect, assimilate, and manage the data received
from monitoring city gate stations and compressor stations all along the pipeline.
Most of the data that is received by a control station is provided by Supervisory
Control And Data Acquisition (SCADA) systems. These systems are essentially
sophisticated communications systems that take measurements and collect data
along the pipeline (in metering and compressor stations and valves) and transmit
the data to the centralized control station. Flow rate through the pipeline,
operational status, pressure, and temperature readings are all be used to assess the
status of the pipeline at any one time. These systems also work in real time, so there
is little lag time between taking measurements along the pipeline and transmitting
Page 75 of 240

them to the control station. Equipment status scans are taken every 6 to 90 seconds
depending on the communication technology used in the field (NPC 2001).
Fig.11-5. SCADA Operation and Monitoring System Scheme
This information allows pipeline engineers to know exactly what is happening along
the pipeline at all times, which permits quick reactions to equipment malfunctions,
leaks, or any other unusual activity along the pipeline, as well as to monitoring load
control. SCADA system also incorporate the ability to operate certain equipment
along the pipeline remotely, including compressor stations, which allows engineers
in a centralized control center to adjust flow rates in the pipeline immediately and
easily.
Construction
Standard pipeline construction is composed of specific activities, including survey

and staking of the ROW, clearing and grading, trenching, pipe stringing, bending,
welding, lowering-in, backfilling, hydrostatic testing, tie-in, cleanup, and
commissioning. In addition to standard pipeline construction methods, the
Developer and EPC Contractor would use special construction techniques where
warranted by site-specific conditions. These special techniques would be used when
constructing across rugged terrain, waterbodies, wetlands, paved roads, highways,
and railroads.
Page 76 of 240

11.3. Methodology. Basic Technical Parameters.
The methodology adopted for this Study considers the following steps:
• To identify technical and economic parameters (CAPEX)

• To identify or estimate a market gas demand profile
• To select a configuration of nominal diameter versus quantity of
Compressor Stations running thermohydraulic simulations
• Define compression system level of redundancy
• Calculate gas pipeline and compressor stations maintenance and operation
costs
• Make Project final decision based on previous items results
The impacting variables detailed below, such as economic life, market gas demand,
design pressure, strength of steel, pipeline internal coating, compressor station
design, compressor system redundancy level and compression ratio have
influence on the Operation Cost, Transportation Rate and may affect directly on
economic effectiveness. Each impacting variable has been evaluated against the
project base case:
• Economic Life: This evaluation assumes that all CAPEX is depreciated

linearly along the selected economic life 30 years, however, this is related to
gas supply reserve and market demand;
• Market Demand: should be as close as possible to the estimated capacity.

That is the reason, that project accomplishes in two phases, following by the
gas demand growth;
• Design Pressure: Design Pressure accepted as 1,420 psig. Further raising

design pressure increases the quantity of compressor stations and
compressor units per station have been changed substantially. As design
pressure increases, also increases its effect on pipeline thickness and
consequently on pipeline weight and this linear effect swallow the benefit
that higher design pressure normally gives to a project. This calculation done
in conjunction to pipe material selection and environmental requirements.
Page 77 of 240

• Strength of Steel: This evaluation assumes design pressure of 1420 psig

(99.84 kgf/cm2g) and pipe material API5L X80.
• Pipeline internal coating: Internal coating is primarily used to reduce the

surface roughness of a pipe. It reduces friction between flowing gas and the
internal surface of a pipe providing the benefit of lower pressure drops, lower
compression power requirements and lower fuel gas for compressor unit
drivers. Additionally protects the pipes from atmospheric corrosion attack
while the pipes are in storage prior assembling.
• Compression Station design: A containerized control station pre-assembled

and pre-tested at manufacturer will reduce 5% costs in assembling and
commissioning time and will provide flexibility should there will be any need
to replace the compressor station.
• Compression system redundancy: The installation of two spare compressor

unit at each compressor station allows to increase the contractual capacity -
on a solid basis - and gives the best economic results for the project. Each
compressor station was equipped with a housing with two redundant units.
• Compression Ratio: Compressor Stations have compression ratio 1.4:1. This

maximum range of around 2:1 is not only related to centrifugal compressor
design but rather to the economics of the pipeline project since gas flow
behavior affects overall compression power requirements and fuel demand.
Below is the Scheme of Projected Gas Pipelines and basic Technical and Thermo-
hydraulic parameters of the Project.
Page 78 of 240

Figure 11-6. Scheme of Projected Gas Pipelines.
TO UGANDA Phase 1
Phase 2
Phase 3
Phase 2 D=24”
310 MMscfd
116,091,900 MMBtua
(116,659,168 MMBtua) Combined Cycle
Power Plant, Phase 1
Combined Cycle
Power Plant, Phase 2
TO KENYA
CCPP 1,704 MW
281 MMscfd
ARUSHA
SHINYANGA DODOMA
Phase 2 D=36” 63 MMscfd
591 MMscfd 23,592,870 MMBtua
221,323,590 MMBtua
(222,516,176 MMBtua)
CCPP 852 MW
CCPP 450 MW
140 MMscfd
70 MMscfd
Phase 1 D=42”
210 MMscfd
78,642,900 MMBtua
(79,141,533 MMBtua)
Phase 2 D=42”
864 MMscfd
323,559,360 MMBtua
(326,801,226 MMBtua) INJECTION STATION
IN KINYEREZI
(DAR-ES-SALAAM)
Page 79 of 240

Table 11-2. Technical Data of Gas Transportation
Technical Parameter
Phase 1 Phase 2 Phase 3*
№ Name of Parameter Kinyerezi - Dodoma - Shinyanga – Dodoma –
Dodoma Shinyanga Uganda Arusha –
Border Kenya Border
01 Pipeline Nominal Diameter 42” 36” 24” 20”
02 Length 470 km 538 km 566 km 533 km
03 Design Code ANSI B31.8 ANSI B31.8 ANSI B31.8 ANSI B31.8
04 Max. Allowed Working Pressure 1,420 psig 1,420 psig 1,420 psig 1,420 psig
05 Pipe material API 5LX80 API 5LX80 API 5LX80 API 5LX80
06 Pipe internal roughness (epoxy 350 inches (0.009 350 inches 350 inches 350 inches
painted) mm) (0.009 mm) (0.009 mm) (0.009 mm)
07 Pipeline Inlet Pressure 1,305 psig 1,305 psig 1,305 psig 1,305 psig
08 Minimum Pipeline Delivery
Pressure 498 psig 498 psig 498 psig 498 psig
09 Pipeline Max. Design Gas flow 1,314 MMscfd 656 MMscfd 310 MMscfd 196 MMscfd
10 Pipeline Annual Design Capacity 12.88 bcma 6.43 bcma 3.04 bcma 1.92 bcma
11 Min. Delivery Pressure 498 psig 498 psig 498 psig 498 psig
12 Soil Temperature 25°C 25°C 25°C 25°C
13 Depth of Cover 1m 1m 1m 1m
14 Compression Ratio (Pd /Ps) 1.4 1.4 1.4 1.4
15 Compressor Station Quantity 4 5 5 5
44,556 hp 25,805 hp 12,334 hp 7,853 hp
16 Total Power Required 33,239 kW 19,250 kW 9,201 kW 5,858 kW
11,139 hp 5,161 hp 2,467 hp 1.571 hp
17 Power Required per Station 8,310 kW 3,850 kW 1,840 kW 1,172 kW
18 Fuel Required 5.47 MMscfd 3.17 MMscfd 1.52 MMscfd 0.96 MMscfd
2,049,280 1,186,818 567,268 361,163
MMBtua MMBtua MMBtua MMBtua
*For information purpose only
11.4. Estimated Budget of Project and Operation Cost.

The estimated budget of this Project Component (Construction Cost), summarized
in Table 11-3 below and itemized in Table 11-4 and Table 11-5 determined using
data and indicative prices, provided by potential contractors and equipment
suppliers, as well as by comparison of similar projects. Estimated budget deviation
is ± 5%. Budget does not include operation expenses.
Page 80 of 240

Table 11- 3. Summarized Gas Pipeline Budget. Phase 1, 2 & 3
Technical and Financial Data

Phase 1 Phase 2 Phase 3*
№ Description Mtwara - Dodoma - Shinyanga – Dodoma –
Dodoma Shinyanga Uganda Border Arusha –
Kenya Border
Technical Parameters
01 Pipeline Nominal Diameter 42” 36” 24” 20”

02 Length 470 km 538 km 566 km 533 km
03 Compressor Station Quantity 4 5 5 5
11,139 hp 5,161 hp 2,467 hp 1.571 hp
04 Compressor Station Capacity 8,310 kW 3,850 kW 1,840 kW 1,172 kW
Pipeline Construction Cost
05 Materials 18% $320,400,000 $315,000,000 $219,600,000 $172,800,000

06 ROW and Damages 1% $17,800,000 $17,500,000 $12,200,000 $9,600,000
07 Labor 36% $640,800,000 $630,000,000 $439,200,000 $345,600,000
08 Miscellaneous 13% $231,400,000 $227,500,000 $158,600,000 $124,800,000
09 Contingencies 20% $356,000,000 $350,000,000 $244,000,000 $192,000,000
10 Developer’s Cost 10% $178,000,000 $175,000,000 $122,000,000 $96,000,000
11 Financing Service Fee 2% $35,600,000 $35,000,000 $24,400,000 $19,200,000
12 Total Pipeline Construction
Cost $1,780,000,000 $1,750,000,000 $1,220,000,000 $960,000,000
Compression Cost
13 Equipment & Materials 36% $67,680,000 $37,800,000 $16,200,000 $10,080,000

14 Land 1% $1,880,000 $1,050,000 $450,000 $280,000
15 Labor 19% $35,720,000 $19,950,000 $8,550,000 $5,320,000
16 Miscellaneous 12% $22,560,000 $12,600,000 $5,400,000 $3,360,000
17 Contingencies 20% $37,600,000 $21,000,000 $9,000,000 $5,600,000
18 Developer’s Cost 10% $18,800,000 $10,500,000 $4,500,000 $2,800,000
19 Financing Service Fee 2% $3,760,000 $2,100,000 $900,000 $560,000
20 Total Compression Cost $188,000,000 $105,000,000 $45,000,000 $28,000,000
21 Total Construction Cost $1,968,000,000 $1,855,000,000 $1,265,000,000 $988,000,000*
22 Total Phase 1 $1,968,000,000
23 Total Phase 2 $3,120,000,000
24 Total Phase 3 $988,000,000*
25 Total Phase 1 + Phase 2 $5,088,000
*For information purpose only
Page 81 of 240

Table 11-4. Phase 1. Gas Pipeline. Estimated Project Budget, Including


Equipment Environmental Bulks &
As-Is Where- Control Required
Is Equipment Services
PIPELINE. EQUIPMENT & MATERIALS. 591,000 $/km $ 290,460,000 $ 277,770,000 $ 277,770,000
CARBON STEEL PIPE NOMINAL

DIAMETER 42” API 5L X80 DESIGN UNAWARDED
CODE ANSI B31.8 470 KM
INTERNAL PIPE COATING (EPOXY) UNAWARDED
CATHODIC PROTECTION UNAWARDED
FITTINGS AND FLANGES UNAWARDED
PIPE COATING UNAWARDED
OTHER EQUIPMENT AND MATERIALS UNAWARDED
COMPRESSOR STATION All units x 4 $16,920,000 $67,680,000 $ 67,680,000
COMPRESSOR UNIT 7,430 hp

(5,540 kW) 2 +1 UNITS 1,450 psig
PIPES AND VALVES

ELECTRIC EQUIPMENT AND
CONTROL
PIG LAUNCHING/RECEVING
FACILITIES All units x 4 $ 2,840,000 $ 11,360,000 $ 11,360,000
METERING STATIONS All units x 4 $ 1,800,000 $ 7,200,000 $ 7,200,000
VALVES All units x 20 $ 640,000 $ 12,800,000 $ 12,800,000
SCADA CONTROL SYSTEM One package unit $11,270,000 $ 11,270,000 $ 11,270,000
CONSTRUCTION CONTRACT
TRANCHING UNAWARDED $ 225,000,000 $ 225,000,000

PIPE WELDING, COATING LIYING
DOWN UNAWARDED $ 659,800,000 $ 659,800,000
COMPRESSOR STATION
CONSTRUCTION UNAWARDED $ 92,000,000 $ 92,000,000
SERVICE ROAD CONSTRUCTION UNAWARDED $ 12,506,000 $ 12,506,000

ENVIRONMENTAL CONTROL
EQUIPMENT UNAWARDED $ 1,180,000 $ 1,180,000
MUSCELLANIOUS UNAWARDED $ 61,923,231 $ 61,923,231
ON-SITE SURVEY
SURVEY SERVICES WORLEY PARSONS $ 7,220,000 $ 7,220,000

TESTING, INSPECTION &

TOTAL $388,080,000 $ 1,180,000 $1,094,309,231 $1,483,569,231
Page 82 of 240


Subtotal Project less Financial Service Fee $ 1,928,640,000
Table 11-5. Phase 2. Gas Pipeline. Estimated Project Budget, including


Equipment Environmental Bulks &
As-Is Where- Control Required
Is Equipment Services
DODOMA – SHUNYANGA SECTION
PIPELINE. EQUIPMENT & MATERIALS. 510,000 $/km $ 290,460,000 $ 274,380,000 $ 274,380,000

COMPRESSOR STATION All units x 5 $7,560,000 $37,800,000 $ 37,800,000
COMPRESSOR UNIT 5,161 hp UNAWARDED

(3,850 kW) 2+1 1,450 psig
PIPES AND VALVES UNAWARDED

CONTROL UNAWARDED
SCADA CONTROL SYSTEM One package unit $ 9,010,000 $ 9,010,000 $ 9,010,000
SHINYANGA – UGANDA SECTION
PIPELINE. EQUIPMENT & MATERIALS. 311,000 $/km $176,026,000 $176,026,000 $176,026,000

Page 83 of 240

COMPRESSOR STATION All units x 5 $5,050,000 $25,250,000 $25,250,000
COMPRESSOR UNIT 2,467 hp UNAWARDED

(1,840 kW) 2+1 1,450 psig
PIPES AND VALVES UNAWARDED

CONTROL UNAWARDED
SCADA CONTROL SYSTEM One package unit $ 8,094,000 $ 8,094,000 $ 8,094,000
CONSTRUCTION CONTRACT
TRANCHING UNAWARDED $ 460,000,000 $ 460,000,000

PIPE WELDING, COATING LIYING
DOWN UNAWARDED $ 967,333,000 $ 967,333,000
COMPRESSOR STATION
SERVICE ROAD CONSTRUCTION UNAWARDED $ 18,759,000 $ 18,759,000

ENVIRONMENTAL CONTROL
EQUIPMENT UNAWARDED $ 2,100,000 $ 2,100,000
MUSCELLANIOUS UNAWARDED $ 99,080,000 $ 99,080,000
ON-SITE SURVEY
SURVEY SERVICES WORLEY PARSONS $ 11,552,000 $ 11,552,000

TESTING, INSPECTION &

TOTAL $588,600,000 $ 2,100,000 $1,761,300,000 $2,352,000,000

Subtotal Project less Financial Service Fee $ 3,057,600,000
Page 84 of 240

Table 11-6. Revenue and Operation Cost. Phase 1 & Phase 2
Amount
Phase 1 + Phase 2
Description Unit Phase 1
Kinyerezi- Kinyerezi- Dodoma- Shinyanga-
Dodoma Dodoma Shinyanga Uganda
Section Section Section
Natural Gas Delivery
MMscfd 210 491 281
For Power Generation MMBtua 78,642,900 183,874,590 105,231,690 -
MMscfd 63
For Residential MMBtua - 23,592,870 - -
MMscfd 310 310 310
For Export MMBtua - 116,091,900 116,091,900 116,091,900
Power Required for
Compression (Table 11-2) kW 7,650 33,239 19,250 9,201
Fuel Required for
Compressing MMBtua 498,633 3,241,866 1,192,586 567,268
Total Gas Flow MMBtua 79,141,533 326,801,226 222,516,176 116,659,168
Total Gas Sold MMBtua 78,642,900 323,559,360
Revenue from Gas Sales
Power Generation in
Dodoma $
(Sale Price 6.30 $/MMBtu) 495,450,270 495,450,270 -
Power Generation in
Shinyanga $
(Sale Price 8.00 $/MMBtu) 841,853,520
Residential
(Sale Price 8.50 $/MMBtu) $ - 200,539,395 - -
Export
(Sale Price 9.20 $/MMBtu) $ 1,068,045,480
Total Revenue $ 495,450,270 2,605,888,665
Operation Cost
(a) Fixed Expenses:
Oversight $ 2,932,636 2,932,636 6,165,850 4,003,709
Maintenance (pigging) $ 6,284,219 6,284,219 13,212,536 8,579,376
Control & Monitoring $ 2,513,688 2,513,688 5,285,014 3,431,750
Security $ 2,234,389 2,234,389 4,697,791 3,050,445
Depreciation Cost for Basic
Equipment 5% $ 19,404,000 19,404,000 17,640,000 11,790,000
Total Fixed Expenses $ 33,368,932 33,368,932 47,001,191 30,855,280
(b) Variable Expenses:
Fuel Cost for Compressing $ 1,595,626 10,373,971 3,816,275 1,815,258
Total Variable Expenses: $ 1,595,626 10,373,971 3,816,275 1,815,258
Page 85 of 240

Table 11-6. (Continue)

Operation (Transmission)
Cost $ 34,964,558 43,742,903 50,817,466 32,670,538
Net Transmission Cost $/MMBtu .445 .135 .230 .281
Total Transmission Cost $ 34,964,558 127,230,907
Gas Purchase (Fuel for
Compression is excluded)
(3.20 $/MMBtu) $ 251,657,280 1,035,389,952
Total Net Income $ 208,828,432 1,443,267,806
The calculation of Operational Costs is assumed, that:
• The pipe will operate at a full design capacity;

• The difference between altitude of injection station and destination sites is
0 feet (0 meter);
XII. PHASE 1 & PHASE 2. DIVISION “D”.

HIGH-VOLTAGE TRANSMISSION LINES
12.1. Existing Grid System
TANESCO owns transmission and distribution lines of different voltage capacities all
over the country. The transmission system is comprised of 2,732 km of 220 kV, 1,538
km of 132kV and 546 km of 66kV. The isolated centers away from the grid are served
by generating units with an aggregate nominal capacity of 81.5 MW. TANESCO
imports power from Uganda via 132kV and from Zambia through 66 and 33kV lines.
Simulation of the existing power system under peak load conditions revealed that
the following portions of line, the Iringa – Dodoma – Singida 220kV line, the Chalinze
– Hale – Arusha 132kV line and Ubungo – Kunduchi – Ras Kilomoni 132kV line and
132kV marine cable from Ras Kilomoni (Mainland) to Ras Fumba (Zanzibar) had
exceeded their thermal limits therefore they could not transfer all the respective
Page 86 of 240

demanded power.
Fig. 12-1. Existing Grid Map
This has resulted in the introduction of the 400kV Iringa – Shinyanga backbone
project, the 400kV Dar es Salaam – Tanga – Arusha and the reinforcement of 132kV
line to Ras Kilomoni and 132kV marine cable to Zanzibar projects. All these projects
have been committed. The proposed increase of power generation in Mbeya, Iringa
and Dar es Salaam regions has necessitated the reinforcement of the 220kV lines to
these areas so that power can be evacuated to the load centres. To this effect, 400kV
lines from Dar es Salaam – Morogoro – Dodoma, Dar es Salaam – Chalinze – Tanga
– Arusha and Iringa – Makambako – Mbeya are planned for construction.
Page 87 of 240

12.2. Development of Greed Interconnections

Present cross border interconnection between Tanzania and neighboring countries
are limited to Uganda (135kV)), Zambia (66kV) and Kenya (33kV).
It is planned, that the present 132kV and 220kV system voltage levels and the
proposed 400kV line will be the main transmission technology of choice for the
internal transmission expansion. Should a Direct Current (DC) voltage level be
required, the range of 330kV to 500kV voltage standard used in other African
countries is the next voltage above the 220kV voltage standard that will be
considered in future.
Fig. 12-2. Development of New Interconnectors (2035)
TANESCO source
The rapid development of the gas industry in Tanzania creates great opportunities
for the construction of new generating capacities and the export of electricity to
neighboring countries. Now, the Government planned to increase the exchange
capacity with other countries, both to ensure access through power trading. The
new 400kV interconnector to Kenya, currently undergoing preparation phase, is
Page 88 of 240

scheduled for entering into operation in 2020. The connection point in the Grid is
Singida. Tanzania is planning another connection to Zambia at 400kV which is
currently under preparation phase, and the connection point in the Grid is Mbeya.
Uganda and Tanzania are planning for the 220kV Masaka (Uganda) - Mwanza
(Tanzania) interconnector, it is scheduled for operation by 2020. Tanzania is also
planning a new connection to Mozambique with a capacity of 220kV; currently
efforts to initiate discussions with the Mozambican counterparts are underway.
Tanzania, Rwanda and Burundi are planning a 63MW hydro power plant project at
Rusumo border with Rwanda and Burundi, the project will enable the National grids
of the three countries be interconnected through 220kV transmission line by 2016.
The last one involves Tanzania and Malawi, a total of 340MW hydro power plant
project at Songwe border is planned, the project will enable the National grids of
the two countries be interconnected through 220kV transmission line by 2021. By
year 2035, the Grid network (400kV and 220kV lines will look as shown in Fig.10-2.
12.3. Project Solutions
Proposed High-voltage overhead power lines will give the opportunity to transfer
large amounts of electricity, generated by three Power Plants total capacity of 3.0
GW and improve sustainable power supply to existing grid.
This Project Component to be implemented in two Phases:
• Phase 1: Allocated High-Voltage Direct Current (HVDC) Transmission Line

500 kV Dodoma – Singida - Shinyanga, lenghth of 490 km;
• Phase 2: (a) Allocated HVDC Transmission Line 500 kV 310 km from

Shinyanga to Biharamulo (Kagera province);
(b) High-Voltage Alternative Current (HVAC) Transmission Line
400 kV 212 km from Biharamulo to Uganda border.
The objective of this scheme is:
• To eliminate electricity deficit in the local grid and to provide sustainable

supply of electricity at peak loads:
• To ensure the export of electricity to Uganda, Kenya and later, to Burundi and
Rwanda
Page 89 of 240

Fig. 12-3. Routing of Projected HV Power Lines
ROUTING OF HV POWER LINES
HVDC PHASE 1
HVDC PHASE 2
HVAC PHASE 2
CCPP 1.30 GW
AC 400 kV 1st PHASE
CCPP 1.70 GW
2nd PHASE
CONVERTER
STATION 1st PHASE
DC 500 kV
CONVERTER STATION
2nd PHASE
DC 500 kV
Page 90 of 240

12.4. Applied Technology

The section of proposed High-voltage power lines Biharamulo-Uganda border (Phase 2) will
be implemented using traditional alternative current transmission technology because of
current grid systems of neighboring countries is not enough developed, and simplified
operation and service is critical for local electricity companies-importers.
The AC transmission system is not described in details here, due to these technology is very
well known. The main components of HVAC transmission system shown on Fig.12-4 below.
Fig. 12-4. Scheme of HVAC Power Delivery
Fig. 12-5. HVAC Components Fig. 12-6. HVAC Substation
Page 91 of 240

High-voltage overhead lines of the section Dodoma-Shinyanga (Phase 1) and Shinyanga-

Buharamulo (Phase 2) will be implemented using Direct Current Transmission technology.
12.5. HVDC Power System
The system which uses the direct current for the transmission of the power such
type of system is called HVDC (High Voltage Direct Current) system. The HVDC
system is less expensive and has minimum losses. It transmits the large amount of
power between the unsynchronized AC system.
Long distances are technically unreachable by HVAC line without intermediate

reactive compensations. The frequency and the intermediate reactive components
cause stability problems in AC line. On the other hand, HVDC transmission does not
have the stability problem because of absence of the frequency, and thus, no
distance limitation. The cost per unit length of a HVDC line lower than that of HVAC
line of the same power capability and comparable reliability, but the cost of the
terminal equipment of a HVDC line is much higher than that of the HVAC line. The
breakeven distance of overhead lines between AC and DC line is range from 400 km
to700 km. In general, HVDC has less effect on the human and the natural
environment.
Fig. 12-7. Scheme of HVDC Power Delivery
Kolor Key:
DC/AC Converter Station and
Red: HVAC Line
AC LINE Step-Down Transformer
Blue: HVDC Line
DC LINE
Green: Distribution Lines HVDC Transmission
Black: Customers Line 500 kV
Power Plant
Step-Up Transformer and

AC/DC Converter Station
Page 92 of 240

Using the advantages of HVDC system, the transmission of energy, produced by the main
generators, located in Dodoma and Shinyanga to remote consumers and for export, will
be carried out without significant power losses.
Fig. 12-8. Basic Components of DC Transmission System
The HVDC system is less expensive and has minimum losses. It transmits a large
amount of power between remote and/or unsynchronized AC systems.
The HVDC system has the following main components:
• Converter Station
• Converter Unit
• Converter Valves
• Converter Transformers
• AC, DC and High-Frequency Filters
• Reactive Power Source
• Smoothing Reactor
• HVDC System Pole
• HVDC Power Line
Converter Station
The terminal substations which convert an AC to DC are called rectifier terminal
while the terminal substations which convert DC to AC are called inverter terminal.
Every terminal is designed to work in both the rectifier and inverter mode.
Page 93 of 240

Therefore, each terminal is called converter terminal, or rectifier terminal. A two-

terminal HVDC system has only two terminals and one HVDC line.
Fig. 12-9. Schematic Diagram of HVDC Converter Station
Converter Unit
The conversion from AC to DC and vice versa is done in HVDC converter stations by
using three-phase bridge converters. This bridge circuit is also called Graetz circuit.
In HVDC transmission a 12-pulse bridge converter is used. The converter obtains by
connecting two or 6-pulse bridge in series.
Converter Valves
The HVDC converters use 12-pulse converter units. The total number of a valve in
each unit is 12. The valve is made up of series connected thyristor modules. The
Page 94 of 240

number of thyristor valve depends on the required voltage across the valve. The
valves are installed in valve halls, and they are cooled by air and freon.
Converter Transformer
The converter transformer converts the AC networks to DC networks or vice versa.
They have two sets of three phase windings. The AC side winding is connected to
the AC bus bar, and the valve side winding is connected to valve bridge. These
windings are connected in star for one transformer and delta to another. The AC
side windings of the two, three phase transformers are connected in stars with their
neutrals grounded. The valve side transformer winding is designed to withstand
alternating voltage stress and direct voltage stress from valve bridge.
Fig. 12- 10. Converter Transformer
There are increases in eddy current losses due to the harmonics current. The
magnetization in the core of the converter transformer is because of the following
reasons:
Page 95 of 240

• The alternating voltage from AC network containing fundamentals and

several harmonics;
• The direct voltage from valve side terminal also has some harmonics.
Filters
The AC and DC harmonics are generated in HVDC converters. The AC harmonics are
injected into the AC system, and the DC harmonics are injected into DC lines. The
harmonics have the following disadvantages:
• It causes the interference in telephone lines;

• Due to the harmonics, the power losses in machines and capacitors are
connected in the system;
• The harmonics produced resonance in an AC circuit resulting in over
voltages.
• Instability of converter controls;
The harmonics are minimized by using the AC, DC and high-frequency filters. The
types of filter are explained below in details.
AC Filters. The AC filters are RLC circuit connected between phase and earth. They
offered low impedances to the harmonic frequencies. Thus, the AC harmonic
currents are passed to earth. Both tuned and damped filters are used. The AC
harmonic filter also provided a reactive power required for satisfactory operation of
converters.
DC Filters. The DC filter is connected between the pole bus and neutral bus. It diverts
the DC harmonics to earth and prevents them from entering DC lines. Such a filter
does not require reactive power as DC line does not require DC power.
High-Frequency Filters. The HVDC converter may produce electrical noise in the
carrier frequency band from 20 kHz to 490 kHz. They also generate radio
interference noise in the megahertz range frequencies. High-frequency filters are
used to minimize noise and interference with power line carrier communication.
Such filters are placed between the converter transformer and the station AC bus.
Reactive Power Source

Reactive power is required for the operations of the converters. The AC harmonic
filters provide reactive power partly. The additional supply may also be obtained
Page 96 of 240

from shunt capacitors synchronous phase modifiers and static VAr systems. The
choice depends on the speed of control desired.
Fig. 12-11. View on HVDC Converter Station
Smoothing Reactor
Smoothing reactor is an oil filled oil cooled reactor having a large inductance. It is
connected in series with the converter before the DC filter. It can be located either
on the line side or on the neutral side. Smoothing reactors serve the following
purposes:
• To smooth the ripples in the direct current;

Page 97 of 240

• To decrease the harmonic voltage and current in the DC lines;

• To limit the fault current in the DC line;
• Consequent commutation failures in inverters are prevented by smoothing
reactors by reducing the rate of rising of the DC line in the bridge when the
direct voltage of another series connected voltage collapses;
• Smoothing reactors reduce the steepness of voltage and current surges
from the DC line. Thus, the stresses on the converter valves and valve surge
diverters are reduced.
HVDC System Pole

The HVDC system pole is the part of an HVDC system consisting of all the equipment
in the HVDC substation. It also interconnects the transmission lines which during
normal operating condition exhibit a common direct polarity with respect to earth.
Thus, the word pole refers to the path of DC which has the same polarity with
respect to earth. The total pole includes substation pole and transmission line pole.
Phase 1 and Phase 2.Two-terminal and Multi-terminal HVDC Systems
The HVDC System, as designed on Phase 1 of the Project, is a two-terminal DC

system point-to-point system. This system does not have any parallel HVDC line and
no intermediate tappings. The HVDC circuit breaker is also not required for two-
terminal HVDC system. The normal and abnormal current is controlled effective
converter controller.
The system, designed on Phase 2, has three converter stations and DC terminal lines.
Some of the converter stations operate as rectifier while others operate as an
inverter. The total power taken from the rectifier station is equal to the power
supplied by the inverter station. This multi-terminal system (MTDC) is more
economical and flexible, and carried out the following:
• Transfers the bulk power from several remote generating sources to several
load centers;
• The systems are interconnected between two or more AC systems by radial
MTDC systems (for export to several countries);
• It reinforces the heavy load AC networks by MTDC systems.
HVDC circuit breaker is used in two terminal DC link and Multi-terminal DC link for
transferring from ground to metallic run.
Page 98 of 240

HVDC Transmission Lines
a) Conductors.
The conductors used on 500 kV transmission line made from aluminum alloy with
total equivalent cross-sectional area of 1,780 kcmil. Due to the mechanical
behavior of aluminum wires, aluminum conductor is reinforced with steel to
withstand inclement weather conditions, including heavy rain and wind. This type
is known as aluminum conductor, steel reinforced (ACSR).
b) Towers
Transmission towers in this Project are made from a lattice steel structure, with the
number of cross arms varying with the configuration. Tower design strength and size
are dictated by the line voltage and electrical air clearances, insulator string lengths
and the weight, diameter and number of conductors employed for each phase, and
the environmental conditions. The type, exact size, height and spacing of towers to
be determined in FEED by geographical, operational, safety and environmental
considerations. A typical overhead line uses three elementary types of tower:
• suspension (used for straight line sections);

• angle (where the route changes direction);
• terminal (where the lines connect with substations or transition to
underground transmission technology).
Even for straight-line routes an angle tower is used approximately every 10 spans to
prevent a "cascade collapse" in the very rare event of catastrophic collapse of a
suspension tower.
A 500kV HVDC suspension tower is typically 40 meters high, with a width of between
30 and 32 meters, depending on tower type. The difference between AC and DC
tower designs are depicted in Figure 12-9.
For 500kV, towers are spaced around 350 to 450 meters apart and provide ground
clearance of at least 8.1 meters in all weather conditions. Higher clearances apply if
the route crosses motorways, navigable waterways or railways.
Towers are made of traditional galvanized lattice steel.
Page 99 of 240

The overhead high-voltage lines design, employed in this Project, are generally
robust and operational in the worst weather conditions and, even though they are
susceptible to lightning strike, their automatic return to service following such an
incident is normally accomplished within seconds.
Fig. 12-12. Comparison of HVAC and HVDC Towers Configuration
AC Tower DC Tower
c) Standard foundations for towers
Standard foundations for transmission line towers consist of a concrete pad and
column footing arrangement which is expected to perform adequately in good to
moderate local ground material. Pad and column foundation arrangements require
open excavation to allow the pad or slab to be cast. There are a number of
methods practiced for the construction of the columns, the two main ones, shown
in Figure 10, being inclined and stepped.
Page 100 of 240

Fig. 12-13. Two Common Designs of Tower Foundation
d) Insulators.
The electrical conductors of the transmission line need to be insulated from the ground.
Although overhead lines use air as their principal insulator, the live conductors are hung
from the towers with cap-and-pin strings of toughened composite insulator design. These
are cheaper than the traditional materials (porcelain), and have a good track record in
Europe.
The length of the insulator strings depends on line voltage and surrounding environmental
pollution levels and will be specified in FEED.
e) Other overhead line equipment. Other equipment that is used on transmission lines
includes:
• vibration dampers, which are fixed to conductors to avoid conductor damage in

windy conditions;
• spacers, which maintain conductor separation at intervals along the span between
towers;
• clamps;
• jumpers and joints.
12.6. AC and DC Technology Comparison.
In AC transmission, alternating waves of voltage and current travels in the line which
change its direction every millisecond; due to which losses occur in the form of heat.
Unlike AC lines, the voltage and current waves don’t change their direction in DC.
HVDC lines increase the efficiency of transmission lines due to which power is rapidly
Page 101 of 240

transferred. DC lines are cheaper than the AC lines, but the cost of DC terminal
equipment is very high as compared to AC terminal cables (shown in the Fig.12-14
below). Thus, the initial cost is high in HVDC transmission system, and it is low in the
AC system
Economic Considerations
For a given transmission task, this Study is carried out to take the final decision
regarding implementation of an HVAC and HVDC systems. The Fig.12-14 is
demonstrate a typical cost comparison curve between AC and DC transmission,
considering:
• AC vs. DC station terminal costs

• AC vs. DC line costs
• AC vs. DC capitalised value of losses
Fig. 12-14. AC vs DC. Cost and Distance
Page 102 of 240

The DC curve is not as steep as the AC curve because of considerably lower line costs
per kilometre. For longer AC lines the cost of intermediate reactive power
compensation also has to be taken into account. The point where two curves meet
is called the breakeven distance. Above the breakeven distance, the HVDC system
becomes cheaper.
For proposed Project (Phase 1 and Phase 2) the break-even distance is in the range
of 500 to 600 km, taking in account capital expenditure, operation cost and power
losses, computed in the Article 12. Below.
Power Losses
Below are power losses, computed for each section of Power Lines:
Table 12-1. Transmission Losses Calculation
Phase 1 Phase 2
HVDC 500 kV HVDC 500 kV HVAC Double
Powerline Parameter Dodoma- Shinyanga- Circuit 400 kV
Shinyanga Biharamulo Biharamulo-
Uganda border
Max. Design Capacity 3,000 3,000 1,500
Phase Current (amps) 3,000 3,000 1,321
Assumed Line Utilization 60% 60% 60%
Full Load Adjustment 0.48 0.48 0.48
No Conductors per Phase 3 3 2
No Circuits per Phase 2 2 2
No Phases 1 1 3
ACSR Size, kcmil 1,780 1,780 795
Resistance, Ohm/km 0.035639 0.035639 0.0795
Line Loss, MW/km 0.1027 0.1027 0.200
Distance, km 490 310 212
Total Loss, MW 50.3 31.8 42.4
Loss in % of Capacity 1.7% 1.1% 2.8%
Total Loss in Terminals 2.2% 1.1% 0.6%
Total System Losses 3.9% 2.2% 3.4%
Loss per 1,000 km* 5.6% 4.5% 13.9%
* For AC and DC comparison only
Page 103 of 240

Advantages of HVDC transmission:
• A lesser number of conductors and insulators are required thereby

reducing the cost of the overall system.
• It requires less phase to phase and ground to ground clearance;
• HVDC towers are less costly and cheaper.
• Lesser corona loss is less as compared to HVAC transmission lines of similar
power.
• Power loss is reduced with DC because fewer numbers of lines are required
for power transmission.
• The HVDC system uses earth return. If any fault occurs in one pole, the
other pole with ‘earth returns’ behaves like an independent circuit. This
results in a more flexible system.
• The HVDC has the asynchronous connection between two AC stations
connected through an HVDC link; i.e., the transmission of power is
independent of sending frequencies to receiving end frequencies. Hence, it
interconnects two substations with different frequencies.
• Inductive and capacitive parameters do not limit the transmission capacity
or the maximum length of a DC overhead line or cable. The conductor cross
section is fully utilized because there is no skin effect.
• Due to the absence of frequency in the HVDC line, losses like skin effect and
proximity effect does not occur in the system.
• A digital control system provides accurate and fast control of the active
power flow.
• Fast modulation of DC transmission power can be used to damp power
oscillations in an AC grid and thus improve the system stability.
• It does not generate or absorb any reactive power. So, there is no need for
reactive power compensation.
• The very accurate and lossless power flows through DC link.
Disadvantages of HVDC transmission:
• Converter substations are placed at both the sending and the receiving end
of the transmission lines, which result in increasing the cost.
• Inverter and rectifier terminals generate harmonics which can be reduced
by using active filters which are also very expensive.
• If a fault occurs in the AC substation, it may result in a power failure for the
HVDC substation placed near to it.
Page 104 of 240

• Inverter used in Converter substations have limited overload capacity.

• Circuit breakers are used in HVDC for circuit breaking, which is also very
expensive.
• It does not have transformers for changing the voltage levels.
• Heat loss occurs in converter substation, which has to be reduced by using
the active cooling system.
• HVDC link itself is also very complicated.
Conclusion
Considering all the advantages of DC, it seems that HVDC lines are more proficient
than AC lines. But, the initial cost of HVDC substation is very high and their
substation equipment is quite complicated.
Thus, for long distance transmission between Dodoma-Shinyanga 490 km (Phase 1)
and Shinyanga-Biharamulo 310 km (Phase 2) it is preferable that power is generated
in AC, and for transmission, it is converted into DC and then again converted back
into AC for final use. This scheme will provide an opportunity to export a large
amount of power to Uganda and, in future – to Rwanda, Burundi and DRC. This
system is economical and also improves the efficiency of the system.
12.7. The Project Component Construction Cost
This Study provide evidence-based construction cost, which estimate both the
equipment procurement costs and other costs for which the Developer incurs
beforehand and over the life of the equipment. Most transmission equipment is
deemed to have a technical life in excess of 40 years although, in practice, some
technologies require a major refurbishment at mid-life, whilst others do not require
replacement even after 50 or 60 years or more.
Page 105 of 240

Table 12-2. Phase 1. Division “C”. HVDC 500 kV Dodoma-Shinyanga. Estimated

Project Budget, including Equipment, Materials and Labor

Equipment Services
BASE EQUIPMENT PACKAGE
TRANSMISSION LINE EQUIPMENT One unit package $ 189,480,000 $ 189,480,000 $ 189,480,000
CONDUCTOR ACSR 800 MM2 UNAWARDED
TOWERS (LATTICE) All items below x 1,170 $ 52,000 $ 60,840,000 $ 60,840,000
INSULATORS (PACKAGE) GENERAL ELECTRIC
VIBRATION DAMPERS (PACKAGE) GENERAL ELECTRIC
SPACERS (PACKAGE) GENERAL ELECTRIC
CLAMPS (PACKAGE) GENERAL ELECTRIC
JUMPERS & JOINTS (PACKAGE) GENERAL ELECTRIC
CONVERTER STATION All items below x 2 $ 223,780,000 $ 447,560,000 $ 447,560,000
AUTO TRANSFORMERS 500 x 220 kV SIEMENS
AC FILTER SIEMENS
VALVE SIEMENS
DC FILTER SIEMENS
ARRESTERS SIEMENS
SMOOTHING REACTOR SIEMENS
12 PULSE CONVERTER SIEMENS
BUS POST INSULATORS (PACKAGE) SIEMENS
CONTROL SYSTEM SIEMENS
MOBILIZATION POWER CHINA $ 4,700,000 $ 4,700,000
ROW PREPARATION, SIDEROAD POWER CHINA $ 16,500,000 $ 16,500,000
MATERIAL HANDLING POWER CHINA $ 8,900,000 $ 8,900,000
FOUNDATION POWER CHINA $ 124,329,231 $ 124,329,231
STRUCTURE ERECTION, POWER CHINA $ 69,000,000 $ 69,000,000
STRINGING POWER CHINA $ 95,790,000 $ 95,790,000
CONVERTER STATION MAINTENANCE SIEMENS $ 1,900,000 $ 290,920,000 $ 290,920,000
COMMISSIONING POWER CHINA $ 13,950,000 $ 13,950,000
ON-SITE SURVEY
GEOLOGY SURVEY SERVICES UNAWARDED $ 12,300,000 $ 10,300,000
TOPOGRAPHY WORKS UNAWARDED $ 10,600,000 $ 6,600,000
Page 106 of 240

ENGINEERING, PROJECT WORLEY PARSONS $ 49,000,000 $ 49,000,000

MANAGEMENT
TOTAL $697,880,000 $ 1,900,000 $ 695,989,231 $ 1,395,769,231
Add 20% of Contingency: $ 279,153,846

Add 10% Developers Cost: $ 139,576,923
Subtotal less Agency and Financial Cost: $ 1,814,500,000
Agency Commission Fee 3%: $ 57,300,000
Financial Service Fee 2%: $ 38,200,000
Total, Phase 1: $1,910,000,000
Table 12-3. Phase 2. Division “C”. HVDC 500 kV Shinyanga-Biharamulo.

Estimated Project Budget, including Equipment, Materials and Labor

Equipment Services
CONDUCTOR ACSR 800 MM2 UNAWARDED
TOWERS (LATTICE) All items below x 775 $ 52,000 $ 40,300,000 $ 40,300,000
CONVERTER STATION One unit package $ 223,780,000 $ 223,780,000 $ 223,780,000
AUTO TRANSFORMERS 500 x 220 kV SIEMENS
AC FILTER SIEMENS
VALVE SIEMENS
DC FILTER SIEMENS
ARRESTERS SIEMENS
SMOOTHING REACTOR SIEMENS
12 PULSE CONVERTER SIEMENS
BUS POST INSULATORS (PACKAGE) SIEMENS
CONTROL SYSTEM SIEMENS
MOBILIZATION POWER CHINA $ 1,100,000 $ 1,100,000
Page 107 of 240

ROW PREPARATION, SIDEROAD POWER CHINA $ 8,884,000 $ 8,884,000
MATERIAL HANDLING POWER CHINA $ 2,870,000 $ 2,870,000
FOUNDATION POWER CHINA $ 80,406,692 $ 80,406,692
STRUCTURE ERECTION, OPGW POWER CHINA $ 34,515,000 $ 34,515,000
STRINGING POWER CHINA $ 60,186,000 $ 60,186,000
CONVERTER STATION MAINTENANCE SIEMENS $ 1,200,000 $ 145,460,000 $ 145,460,000
COMMISSIONING POWER CHINA $ 7,200,000 $ 7,200,000
ON-SITE SURVEY

MANAGEMENT
TOTAL $389,066,000 $ 1,200,056 $ 377,041,692 $767,307,692
Add 20% of Contingency $ 153,461,539

Subtotal less Agency and Financial: $ 997,500,000
Subtotal HVDC 500 kV Phase 2: $ 1,050,000,000
Table 12-4. Phase 2. Division “C”. HVAC 400 kV Biharamulo-Uganda.

Estimated Project Budget, including Equipment, Materials and Labor

DESCRIPTIO VENDOR NAME OR Included in
Equipment Services
2
CONDUCTOR ACSR 400 MM GENERAL ELECTRIC
EARTH WIRES GENERAL ELECTRIC
TOWERS (LATTICE) All items below x 600 $ 72,000 $ 43,200,000 $ 43,200,000
SUBSTATIONS 400/220 kV Not Applicable
Page 108 of 240

MOBILIZATION GENERAL ELECTRIC $ 2,800,000 $ 2,800,000
ROW PREPARATION, SIDEROAD UNAWARDED $ 7,500,000 $ 7,500,000
MATERIAL HANDLING UNAWARDED $ 3,900,000 $ 3,900,000
STRUCTURE ERECTION, OPGW GENERAL ELECTRIC $ 30,000,000 $ 30,000,000
STRINGING GENERAL ELECTRIC $ 40,540,000 $ 40,540,000
COMMISSIONING UNAWARDED $ 8,900,000 $ 8,900,000
ON-SITE SURVEY

MANAGEMENT
TOTAL $ 160,769,000 $ 1,000,000 $ 159,769,462 $ 321,538,462
Add 20% of Contingency: $ 64,307,692

Subtotal less Agency and Financial: $ 418,000,000
Subtotal HVAC 400 kV Phase 2: $ 440,000,000
Total, Phase 2: $1,490,000,000
12.8. Net Transmission Cost
Energy loss refers to the heat which wires and cables of a transmission network emit
during operation - the energy is just lost to the atmosphere. This heat is caused
mainly by the resistance of the transmission conductors to the flow of electric
current, and it varies instantaneously during the day according to the square of the
electric current flow. These are somewhat lengthy calculations, taking into account
many factors including ambient and conductor temperatures, conductor
resistances, capacitances, lengths and voltages, the number of conductors in
parallel, and whether the conductors are suspended in air or buried. It is not
proposed to detail these calculations here; however, the average results of energy
losses for the overhead line are calculated in the Table 12-1 above.
Page 109 of 240

Table 12-5. Operation Expenses and Net Transmission Cost
Quantity
Description Unit Phase 1 Phase 2

HVDC HVDC HVAC
500 kV 500 kV 400 kV
Installed Capacity kV/MW 500/3,000 500/3,000 400 / 1,500
Designed Transmission Capacity MW 1,000 2,300 1,000
Specific CAPEX (Converter
Substations included) US$/km 4,063,829 3,387,097 2,075,472
Percentage of Equipment Cost % 36.5 37.1 36.3
Working Hours a Year hour 8,760 8,760 8,760
Total Electricity Transmitted MWh 8,760,000 21,024,000 8,760,000
Power Purchase Price on
Step-up Transformer US$/kWh .12 .12 .12
Power Sale Price on Step-down
Transformer .18 .18
Transmission Revenue
$.06/kWh US$ 525,600,000 1,261,440,000
Fixed Operation Expenses:

Headcount of Workers worker 850 420 280
Monthly Average Earnings US$/worker 1,100 1,100 850
Salary and 25% Social Benefits US$ 14,025,000 6,930,000 3,570,000
Environment US$ 1,800,000 1,300,000 300,000
Depreciation Cost 2% (basic
equipment) US$ 13,957,600 7,781,320 3,200,000
Current Maintenance & Repair
1% US$ 6,978,800 3,890,660 1,600,000
Total Fixed Operation Expenses US$ 36,761,400 28,571,980
Variable Expenses
Power Losses % 3.9 2.2 3.4
Cost of Power Losses US$ 40,996,800 55,503,360 35,740,800
Total Variable Expenses US$ 40,996,800 91,244,160
Total Operation Expenses US$ 77,758,200 119,816,140
Average Transmission Net Cost US$/kWh .00888 .00570
Net Income (before tax) US$ 447,841,800 1,141,623,860
Page 110 of 240

XIII. PHASE 1. DIVISION “E”. STRATEGIC FUEL STORAGE.
13.1. Objective.
Strategic Petroleum Reserves are oil products inventories held by country in
preparation for potential energy crises. The reserves are intended to provide
economic and national security in the event of an energy crises. Countries, which
are members of the International Energy Agency (IEA are recommended to have on
reserve an amount of oil equal to or greater than 90-days worth of the previous
year's net imports).
The purpose of strategic petroleum reserves is to thwart a crippling energy crisis. In

the event that oil production decreases due to situations such as the physical
disruption of the recovery or refinery process, the oil reserves are intended to meet
daily energy requirements.
Presently, Tanzania have no such strategic reserves yet.
In view of the fact that the construction of a tank depot is costly, the GOT offered
Developer to partially use the tank farm for commercial purposes in order to
generate revenue and ensure a return on investment.
Fig. 13-1. Tank Farm
Page 111 of 240

Proposed Fuel Storage will provide the domestic market with relatively cheap oil
products and also create a guaranteed reserve for the export petroleum products
to landlocked countries.
13.2. Fuel Market

Tanzania have no refinery plants and is a net importer of petroleum products. During
the financial year 2015–2016 the country imported a total of 4.83 Gigalitres
(4,830,000 m3) of petroleum products; 3.09 GL were destined to the local market
and 1.74 GL were exported to landlocked neighboring countries (Zambia,
Democratic Republic of Congo, Rwanda, Malawi and Burundi).
Local petroleum products imports were dominated by diesel with 53% or 1.64 GL,
followed by petrol with 31% or 0.96 GL, and other products, including aviation
kerosene, Jet A1 and HFO. The Dar-es-Salaam sea port is the main entry point of
petroleum products with 99% of all imports, while the remaining 1% enters Tanzania
through the Kenyan border with Sirari.
Below is the consumption of oil products in neighboring landlocked countries, which

creates additional opportunities for exports oil products:
Burundi 1.15 Mm3 a year;

Rwanda 1.49 Mm3 a year;
Uganda 1.45 Mm3 a year;
DRC East 1.84 Mm3 a year.
TOTAL: 5.93 Mm3 a year
Due to geographic location and logistics up to 40% of inland and 75% of export fuel
market would be processed by proposed Fuel Storage. The Government of Tanzania
planning to build four more Fuel Storages and create a product pipelines to
landlocked countries.
Page 112 of 240

13.3. Fuel Prices

The main challenge of the African oil product market are low quality, unstable
delivery and high prices for products. Thus, on the West part of DRC the price of
automotive diesel is US$2.50 to US$2.80 / L. In Tanzania, the Price of diesel, gasoline
and kerosene has steadily risen over the past few years, EWURA set and publish fuel
prices on a monthly basis. The demand for fuel is adequate for the needs of
Tanzania. The controlling factor is the costs of fuel and affordability.
Here are retail fuel prices in Dar-es-Salaam as of January 22, 2018 (in local currency
and in US$):
Gasoline, per L: 2,167 TZS / $0.98

Diesel, per L: 2,018 TZS / $0.92
Tanzania had introduced the bulk procurement system (BPS) in January 2012,
establishing a database on consumption trends in a bid to get the best price on the
world market and guarantee quality of imported products.
The Petroleum Importation Coordinator, now known as Petroleum Bulk

Procurement Agency (PBPA), annually prequalifies suppliers eligible to participate
in tenders for the supply of petroleum products.
Fig. 13-2. Wholesale Gasoline Prices Fig. 13-3. Wholesale Diesel Prices
in Dar-es-Salaam port (TZS/L) in Dar-es-Salaam port (TZS/L)
Page 113 of 240

The Developer, as Strategic Investor, is exempted of tender procedure and have a

right to procure, import and export unlimited quantity of products without tender
participation.
13.4. Project Solution
The assignment of the Strategic Fuel Storage (further: Terminal) is: storage and
handling of Strategic Fuel Reserve, mixing, transshipment, distribution, acceptance
and dispensing of light oil products I, II and III Classes, into the railway and
automotive transport.
Terminal consist of tanks, pump stations, pipes, manifold system, loading/unloading

facility, which receive products from rail cars and truck tankers, as well as dispatch
of products, fire extinguishing system, waste collector and purification system,
approach RW and automotive roads, security and monitoring system etc.
The railway loading/unloading facility will be mounted as the second phase of
Terminal development due to existing railway system doing to be replaced from the
narrow to the standard gauge.
In order to handle large number of rail cars / trucks for loading or unloading, facilities
called loading bays are provided. These consist of loading/unloading headers with
loading/unloading points with hoses/arms, walkways, railings, set stop ramping /
up- ramping down (opening in steps and closing in steps) automatic cut-off valves,
approach platforms, metering station, rail tracks etc.
As the second phase, there are 2 railway platforms with automatic drain for
simultaneous reception of 20 railway wagons tanks will be included in the Project.
Besides of main tanks, the metering tanks will be installed for disposition of
products. The volume of each tank will be equal of 2-days consumption.
The total operation (working) capacity of Terminal is calculated, based on IEA
recommendations to have on reserve an amount of oil product equal to or greater
than 90-day worth of the previous year's net consumption.
Distribution of oil products and size of tanks are shown in Table 13-1. The axillary
tanks are not included.
Page 114 of 240

Table 13-1. Distribution of Oil Products in Terminal and Tank Dimensions
Stored Product Quantity *

Product Specific Number, Size** & Type
Volume
Gravity of Tanks API
% Mbl m3 Metric ton
Kg/L Classification
Mbl / m3
2 x 151 / 24,007
HFO .97 7.7 256 40,701 39,480 Atmospheric, Field-
welded
Floating double-deck
roof
12 x 151 / 24,007
Diesel .83 46.4 1,536 244,209 202,693 Atmospheric, Field-
welded
roof
10 x 151 / 24,007
Gasoline .74 38.7 1,280 203,507 150,595 Atmospheric, Field-
welded
roof
7 x 32.9 / 5,231
A1 Jet, .83 5.9 195 31,003 25,733 Atmospheric, Field-
JP54 welded
roof
1 x 32.9 / 5,231
Aviation .83 0.8 28 4,452 3,695 Atmospheric, Field-
kerosene welded
roof
10 x 1.75 / 278
Lube .88 0.5 15 2,385 2,099 Atmospheric Field-
welded
Fixed dome-shaped roof
Total 100 3,310 526,267 424,295 3,905 / 620,808
*Net Working Capacity

**Maximum Capacity
In this Project an External floating roof tanks are applied, which equipped with a rim
seal system, which is attached to the roof perimeter and contacts the tank wall. The
rim seal system slides against the tank wall as the roof is raised and lowered.
Page 115 of 240

Table 13-2. Standard API Tank Sizes Applied in the Project
Max Capacity Dimensions Weight

Barrels Gallons Diameter Height lbs
1,750 75,000 23’ 24’ 11,200

32,900 1,380,000 70’ 48’ 244,000
151,000 6,350,000 150’ 48’ 1,050,000
The floating deck is also equipped with fittings that penetrate the deck and serve
operational functions. The external floating roof design is such that evaporative
losses from the stored liquid are limited to losses from the rim seal system and deck
fittings (standing storage loss) and any exposed liquid on the tank walls (withdrawal
loss).
Fig.13-4. Terminal Bird’s-Eye View
Page 116 of 240

Fig. 13-5. Section of Double-deck Floating Roof
The Terminal have a number of tanks of equal heights. However, they have varying
capacities. Equal height adds to a esthetics and lends them economic credence in
the construction of access structures, easy movements of operators from one tank
to another and of ﬁre service men during emergency episodes.
Fig. 13-6. Fuel Tank Capacities and Levels
Main tanks will be laid out in square pitch having safe inter-space between them.
The inter-tank optimum separation distance is crucial for safe operations, piping
design, and maintenance access and emergency/accident control and mitigation
measures.
Page 117 of 240

Fig. 13-7. Fuel Tank Construction Design
The desired inter-tank distance depends largely on the materials/chemicals to be

stored and the capacity of the tanks. The detailed calculation of safe distances is out
of frame of this Study and will be provided in Feasibility Study of the Project.
Ideally the tanks are so placed and installed that in case of ﬁre, the neighboring tanks
could remain safe. The safe distance of separation among the tanks is calculated in
no wind condition, as well as, in the presence of wind.
Fig. 13-8. Tank Farm Square Pitch Fig. 13-9. Schematic Diagram for
Layout Tank on Fire under
Cross-wind Condition
Page 118 of 240

13.5. Selection of Construction Site and Environment Protection
There is a Land Area of 180 hectares 10 km away from Dodoma Railway Station is
allocated for the construction of Terminal. The Site is in the vicinity of single-track
railroad, which is а part of the Dar-es-Salaam - Dodoma Railway Route.
The Terminal will be located at lower elevation. The terrain is flat. Vegetation is
absent. Soil tight, gravel- pebble, loam. Seismicity is 7 points of Richter Magnitude Scale.
The storage tanks will be located downwind of process units.
Due to risk of failure of storage tanks and primary piping systems, means must be
provided to contain the spills. The containment for petroleum storage tanks should
be built around the tanks are made of concrete “dyke” and the lining should be
impervious to liquid stored to prevent spills that can cause fire, property damage or
contaminate the environment.
The minimum capacity of the basin volume should be equal to the capacity of the
largest tank plus 10% of the sum of the capacities of others. To prevent a spill or
other emergency the walls of the containment basin must be resistant to the
product and must be able to withstand considerable pressure. The drain Valve,
which should be incorporated into the outer side of the containment basin, must be
closed to prevent possible contamination to the environment.
13.6. Terminal Operations
The Basic operations are:
• Acceptance of oil products delivered to the Terminal in railway cars and

road tanks;
• Storage of petroleum products in tanks and in packaging storage;
• Shipment of petroleum products by rail and road transport;
• Compounding (mixing) of the petroleum products.
The Auxiliary operations are:
• Cleaning and dehydration products;

• Manufacture and repair of oil containers;
• Repair of the process equipment, buildings and structures;
• Operation of internal power plants and vehicles.
Page 119 of 240

In order to establish a clear and smooth running of all operations, as well as for
reasons of fire safety objects, the Terminal should be divided into zones.
The Rail Operations zone will include facilities for loading and unloading petroleum
products. This area contains: railway sidings, plum - loading racks, pump for
pumping oil products, the operator’s room for staff, serving a platform.
The Storage zone will be represented by the following facilities: tank farm, process
piping, pumping, operator’s room.
Operational zone is for a shipment of oil products, sold in small batches into the
trucks, containers and barrels, will be: covered platform for loading of petroleum
products and filling drums, a laboratory for analysis of the quality of petroleum
products, small packaging warehouses, etc.
Area support structures designed in order to serve the Terminal, including:
mechanical workshop, boiler room (hot water), power station or a transformer,
shop for the manufacture and repair of oil containers, water and sanitary facilities,
material storage, fuel storage tank for the needs, fire service facilities.
Management zone includes: office, fire monitoring station, security division, and
transportation facility.
Area treatment facilities includes: wastewater manifold system, oil separators for
separating oil from water, block treatment facilities, etc.
13.7. Logistics
Oil products shipped and unloaded at the seaport of Dar-es-Salaam, are delivered
by railways, as well as by road tankers along a well-paved road, linked Dar-es-Salaam
and Dodoma. Petroleum products are generally distributed by the use of road
tankers instead of rail due to operational constraints of the rail network.
The RW tariff for transportation flammable liquids from Dar to Dodoma, as of
January 2018 is: TZS 215,700 (US$96.00) per metric ton, including loading,
transportation, unloading and wagon cleaning.
The existing market price of automotive delivery from Dar-es-Salaam to Dodoma is
between $90 and $110 per 1,000 liters.
The Developer will create its own automotive transportation facility which would
decrease a transportation expenses down up to 40%. In close future, it is planned to
build onshore reservoir park and floating jetty in Tanga sea port in order to finalize
a logistics chain for independent delivery petroleum products for dual-fuel Power
Plant and Strategic Fuel Storage.
Page 120 of 240

Fig. 13-10. Map of Tanzania Railways
Transportation Facility
Transportation Facility (further: Facility) is designed as the integrated part of

Terminal and the fuel product carrier, which designated for serve the Terminal and
Dial-Fuel Power Plant. The Facility consists of:
• Tanker truck and trailer fleet;

• Covered parking (Garage);
• Trucks and trailers inspection and preventive maintenance bay;
• Trucks and trailers repair bay (workshop);
• Tankers cleaning and truck washing bay;
• Road emergency service fleet;
• Light car service fleet;
• Medical oversight laboratory;
• Management office and GSM/GPS geolocation position determination and
anti-hijacking group;
• Truck drivers rest rooms and dining hall.
Page 121 of 240

The basic maintenance and repair service to be executed by the team of heavy-duty
mechanics, provided by the trucks producer in order to perform preventive
maintenance and repairs.
Tanker Trucks and Trailer Fleet
In this Study the SCANIA R500 right-hand steering tanker truck and trailer are
chosen as the basic product carrier.
The total volume of tanker and trailer is 55,000 L.
Fig. 13-11. SCANIA Tanker Train
Table 13-3 shows the calculation of the cost of fuel transportation from Dar-es-
Salaam to Dodoma. Tankers, which occasionally be free of the products
transportation, can deliver goods of third-party organizations on a commercial basis.
Page 122 of 240

Table 13-3. Transportation Facility Operation Cost
Item
№№ Description Unit Quantity
Fleet Operations
1 Loaded Mileage Run km 470
2 Deadhead Mileage km 470
3 Average Travel Speed Loaded/Unloaded km/hr 60/70
4 Average Driving Time in Loaded/Unloaded hr 8/7
5 Average Loading/Unloading Time hr 3/2
6 Non-driving Time at Truck-stops hr 10
7 Average Total Trip Time hr 30
8 Number of Trips per Month/Year trip 20/240
9 Truck Payload (Truck + Trailer) 1000 L 55
10 Annual Delivery 1000 L/truck 13,200
11 Annual Fuel Transportation, min/max m3 772,650/2,300,000
12 Number of Trucks & Trailers, min/max truck 60/180
13 Number of Truck Drivers per Truck worker 2
14 Fuel Usage Loaded/Unloaded per Truck L/100 km 32/48
15 Hourly Salary Rate (For Driving Time) $/worker/hr 10
Annual Fixed Expenses Per Truck
16 Cargo Insurance Premiums $/truck 2,400
17 Collision/Workers comp Insurance $/worker 1,800
18 License Plate and Permits $ 600
19 Depreciation Cost 20% $ 63,400
19 Total Fixed Expenses $ 68,200
Annual Variable Expenses
20 Fuel Quantity/Cost L/$ 102,240/98,150
21 Tires $280 x 26 wheel x 2 times $ 14,560
22 Maintenance & Repair $ 15,500
Total Variable Expenses $ 128,210
Wages
23 Total Driving Hours Run hr 3,600
24 Annual Salary and 25% Social Benefits $/worker 45,000
25 Total Wages $ 90,000
26 Total Operation Expenses per Truck $ 286,410
27 Total Operation Expenses (180 Trucks) $ 51,553,800
28 Net Transportation Cost $/1000 L 21.70
Page 123 of 240

13.8. Annual Turnover and Operation cost
The estimated minimum turnover of petroleum products is caused by the need for
a three-fold annual rotation and refresh in order to avoid the loss a quality of
products. However, based on existing fuel market, referred in Article 13.2, and
regional fuel consumption schedule, provided by TPDC, in future the Terminal will
process about 35% of local market and over 60% of export to landlocked countries.
Table 13-4. Annual Turnover and Estimated Revenue
Sales, 1000xL Average Bulk Price*,

Name of % US$/1000xL Annual Storage Total
Product Fuel Price, Sales, Margin, Service Revenue,
A Year Daily CIF Dodoma On Charge**,
Terminal Dodoma
(Transport Terminal MUS$ MUS$ MUS$
included) Flange
HFO/Marine
Diesel 7.6 120,000 329 310 369 7.080 9.600 16.680
ULS Diesel 46.4 730,000 2,000 620 830 153.300 58.400 211.700
Unleaded
Gasoline 38.7 610,000 1,671 780 910 79.300 48.800 128.100
A1 Jet, JP-
54 6.0 95,000 260 785 905 11.400 7.600 19.000
Aviation
Kerosene 0.8 13,000 36 765 885 1.056 1.040 2.096
Lube 0.5 7,000 19 2,990 3,150 1.120 0.560 1.68
Total 100.0 1,575,000 4,315 253.256 126.500 379.256
*As of European Market Scan PLATTS trends, February, 2018

** Average Service Charge is $80.00 /1000 L, Including discharge, storage and loading
Page 124 of 240

Table 13-5. Terminal Operation Cost
Electricity Utilization Power

Ratio Consumption,
kWh
Installed capacity:
Discharge/Loading RW Facility
kW 2,860 0.75 18,790,200
Discharge/Loading Road Truck Facility
kW 1,940 0.85 14,445,240
Compounding, Inter-tanking and
Auxiliary Pumps kW 1,880 0.30 4,940,640
Lighting kW 500 0.25 1,095,000
Separator, Waste Purification System kW 285 0.20 499,320
Water Pumps (Cleaning system) kW 120 0.75 788,400
Other Systems kW 150 0.95 1,248,300
Total electricity consumption kWh 41,807,100
Electricity Cost $.12/kWh $ 5,016,852
Materials, Foam Compounds and
Detergents $ 1,280,000
Salary & Benefits
Monthly Average Earnings $/worker/month 850
Salary and 25% Social Benefits $ 7,650,000
Environment $ 800,000
Depreciation Cost 2% (basic
equipment) $ 4,982,000
Cost of Product Losses 0.5% $ 7,314,900
Transportation Cost
(see Table 13-3) $ 51,553,800
Total Operation Expenses, Including
Transport $ 81,088,552
Net Operation Cost $/1000 L 51.48
Page 125 of 240

13.9. The Project Budget
In Table 11-3 below provided evidence-based construction cost, which estimate

both the equipment procurement costs and other costs for which the Developer
incurs beforehand and over the life of the equipment. Practically, Terminal
equipment is deemed to have a technical life in excess of 40 years.
Table 13-6. Phase 1. Division “E”. Strategic Fuel Storage. Estimated Project
Budget, including Equipment, Construction Materials and Labor

Equipment Services

FIELD-WELDED ATMOSPHERIC TANK
151,000 BL API STANDARD WITH x 24 units $ 7,050,000 $ 169,200,000 $ 169,200,000
FLOATING DOUBLE-DECK ROOF
32,900 BL API STANDARD WITH x 8 units $ 2,080,000 $ 16,640,000 $ 16,640,000
1,750 BL API STANDARD WITH x 10 units $ 790,000 $ 7,900,000 $ 7,900,000
PIPING & VALVES One unit package $ 15,200,000 $ 15,200,000
PUPMPS Package 135 units $ 11,100,000 $ 11,100,000
METERING TANKS, PACKAGE 42 units package $ 4,800,000 $ 4,800,000

LOADING / UNLOADING PLATFORM
FOR 20 RAIL CARS 2 units package $ 7,480,000 $ 7,480,000
LOADING/UNLOADING BAY FOR
TRUCK TANKS 4 units package $ 2,200,000 $ 2,200,000
AUTOMATIC RAILWAY SCALES 2 units package $ 500,000 $ 500,000
AUTOMATIC TRUCK SCALES 4 units package $ 340,000 $ 340,000
SUBSTATION 400 x 132 kV One unit package

AUTO TRANSFORMERS 400 x 132 kV
XFMR, INSOLATORS, WIRE ETC. GENERAL ELECTRIC $ 1,150,000 $ 1,150,000
DIESEL GENERATOR 2.8MW MAN TURBO & DIESEL $ 1,900,000 $ 1,900,000
FIRE EXTINGUISHING SYSTEM One unit package

AUTOMATIC FOAM EXTINGUISING
SYSTEM $ 2,200,000 $ 2,200,000
WATER EXTINGUISHING SYSTEM $ 2,050,000 $ 2,050,000
LABORATORY $ 300,100 $ 300,100
SECURITY & MONITORING SYSTEM $ 1,050,000 $ 1,050,000

WASTEWATER PURIFICATION
SYSTEM $ 2,880,000 $ 2,880,000
SERVICE MACHINERY $ 2,210,000 $ 2,210,000
Page 126 of 240

TRANSPORTATION FACILITY
TRUCK TANKER AND TRAILER
SCANIA R500 TOTAL CAPACITY 180 units $ 367,000 $ 66,060,000 $ 66,060,000
55,000 L
AUXILIARY CAR FLEET 30 units $ 1,110,000 $ 1,110,000
ROAD EMERGENCY FLEET 6 units $ 178,000 $ 1,068,000 $ 1,068,000

GPS OPERATION AND CONTROL
SYSTEM One package unit $ 390,000 $ 390,000
COVERED PARKING One package unit $ 3,450,000 $ 3,450,000

WORKSHOP AND DIAGNOSTIC
FACILITY One package unit $ 5,200,000 $ 5,200,000
TANK CLEANING AND CAR WASH One package unit $ 2,150,000 $ 2,150,000
MOBILIZATION UNAWARDED $ 400,000 $ 400,000
SITE PREPARATION UNAWARDED $ 1,250,000 $ 1,250,000
DYKE CONSTRUCTION UNAWARDED $ 14,000,000 $ 14,000,000
MAIN TANKS ERECTION UNAWARDED $ 46,300,000 $ 46,300,000
PIPING UNAWARDED $ 20,281,500 $ 20,281,500

PARKING AND WORKSHOP
GPS SYSTEM MAINTENANCE UNAWARDED $ 200,000 $ 200,000
WASTE PURIFICATION SYSTEM UNAWARDED $ 2,200,000 $ 2,200,000
SUBSTATION MAINTENANCE POWER CHINA $ 850,000 $ 850,000
TESTING & COMMISSIONING UNAWARDED $ 2,200,000 $ 2,200,000
ON-SITE SURVEY
GEOLOGY SURVEY SERVICES UNAWARDED $ 870,000 $ 870,000
TOPOGRAPHY WORKS UNAWARDED $ 280,000 $ 280,000

MANAGEMENT
TOTAL $ 328,528,000 $ 1,100,000 $ 138,064,308 $ 467,692,308

Add 10% Developer’s Fee : $ 46,769,231
Subtotal Project less Agency
Commission Fee and Financial Service: $ 608,000,000
Total Project Cost : $ 640,000,000
Page 127 of 240

XIV. POTABLE WATER SUPPLY AND SANITATION SYSTEM
14.1. Existing Situation.

Water supply is a critical to Tanzania’s economy: water is key to agricultural sector
performance; piped water systems shall provide input into industrial production and
supply drinking water population in projected Metropolitan City of Dodoma and
satellite urban areas; water is a key for providing a hygiene and health of population.
With renewable water resources per capita of 2,291 m3, Tanzania is currently not
classified as water scarce. However, due to projected population growth it is
expected to be so by 2020.
Access to water and sanitation remains low in Tanzania. In 2015, 56% of the
population had access to "improved" water, 77% and 46% of urban and rural areas,
respectively. In 2015, only 16% of the population had access to "improved"
sanitation, 31% and 8% in urban and rural areas respectively.
Up to one third of deaths in children under-five years in Tanzania are related to poor
hygiene. This includes nearly 20 percent of under-five deaths due to preventable
diarrhea totalling nearly five children every hour, as well as deaths among newborns
and due to respiratory illness.
Extremely dangerous situation exists in Tanzanian schools. Here is some data

provided by UNISEF:
Tanzanians who lack access to improved drinking water sources 46%

Tanzanians with no access to improved sanitation 87%
Tanzanians practicing open defection 16%
Population who wash hands with soap before preparing food 20%
Schools with no water supply in the school premises 38%
Schools with no functional hand washing facilities 84%
Page 128 of 240

Schools with no doors on girls latrines 52%

Schools with no sanitary facilities suitable or accessible to children
with disabilities 96%
Average pupils/latrine drop hole in public and private primary
schools nationwide 56
Average pupil/latrine ratio in Government primary schools in 215 boys
Dar-es-Salaam /187 girls
Water quality. Water quality varies significantly within the country. In the semi-arid
regions (including Dodoma, Singida, Tabora, Shinyanga, and Arusha), color and
turbidity levels become problematic during the rainy season. Rivers in the fluoride
belt (including Arusha, Kilimanjaro, Singida, and Shinyanga regions of the Rift Valley,
and extending to the Pangani and Internal Drainage basins) have naturally
high fluoride concentrations.
The waters of Lakes Tanganyika and Nyasa have overall good water quality except
in the vicinity of urban areas where effluent and storm water cause local
contamination, whereas the water quality of Lake Victoria is poor: high turbidity and
nutrient levels lead to frequent blooms of algae and infestations of water weeds.
Fig. 14-1. Existing “water supply” in Tanzanian Villages
Page 129 of 240

Water supply in Dodoma. The sole water supply source for City of Dodoma is ground
water, comes from 24 deep boreholes located at Makutupora basin. The basin is
located about 35km from town center. Wells drilled on 1950 and have total
productivity around 61,500 m/day. The total length of water supply network is
393km where 47.983 km is the trunk main and 345.017km is the distribution
network. The quality of underground water is very low. Water is very mineralized
and, obviously, passes thru horizons, which contain base metals occurrences. The
total percentage of urban population, received "improved" water services from
DUWASA is almost 62%. The total number of households, which have the access of
clean water is almost 31,000. The total number of households networked with the
sewerage is 5,152.
14.2. Population Growth and Water Consumption

Tanzania's population growth rate continues to climb with a current growth rate of
4.1% annually. The low median age of Tanzanians is attributed to insufficient
sanitary situation, HIV and other epidemic in the Country.
Fig. 14-1. Chart of Population Growth in Tanzania
Page 130 of 240

Fig.14-2. Water Consumption and Sewage Disposal Growth in Tanzania
Despite the epidemics, along with high maternal and infant mortality rates, the
population of Tanzania continues to grow rapidly. This is attributed to the very high
birth rate of 37.25 births per 1,000 people, with a total fertility rate of over 5 children
born per woman. Tanzania has the 18th highest population growth rate and birth
rate with no signs of changing.
If trends continue, it's projected that Tanzania will have a population of 95.5 million
by 2050.
Due to limited access to drinking water, average per capita water consumption
currently ranges from 3 to 5 liters per day (for comparison: in North American cities
the average water consumption is 300 liters per day per capita).
Below is projected water consumption and sewage disposal, accepted in the Project:
Page 131 of 240

Table 14-1. Estimated Water Consumption and Sewage Disposal in Dodoma
Years
Description 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Population In service zone of
water supply:
Dodoma, Shinyanga and Singida, 1,140 1,300 1,410 1,490 1,590 1,690 1,800 1,910 2,030 2,150
Thousand people
Number of people which
consume up to 180 L/d/person, 2 10 30 100 150 370 590 810 1,030 1,250
Thousand people
consume up to 95 L/d/person, 68 190 300 340 540 580 630 680 740 800
Thousand people
consume up to 25 L/d/person, 1,070 1,100 1,080 1,050 900 740 580 420 260 100
Thousand people
Residence Water Consumption,
1000 x m3/d 33.57 47.35 60.90 76.55 100.80 140.20 180.55 220.90 262.20 303.50
Add 20% for Social Service Sector
1000 x m3/d 6.71 9.47 12.18 15.31 20.16 28.04 36.11 44.18 52.44 60.70
Add 15% for Industrial and
Commercial Sector 1000 x m3/d 5.04 7.10 9.14 11.48 15.12 21.03 27.08 33.14 39.33 45.53
Total Daily Water Demand,
1000 x m3/d 45.32 63.92 82.22 103.34 136.08 189.27 243.74 298.22 353.97 409.73
Annual Water Demand, Mm3 16.54 23.33 30.01 37.72 49.76 69.08 88.97 108.85 129.20 149.55
Max. Water Delivery, Mm3 /year 0.00 0.00 21.88 43.77 43.77 87.54 87.54 131.31 131.31 175.08
Number of Pipes Operational 1 1 1 2 2 3* 3* 4*
Sewage, 1000 x m3/d 6.82 19.85 65.78 86.12 118.33 164.58 221.58 271.11 321.79 390.22
Sewage, Mm3 /year 2.49 7.25 24.01 31.43 43.19 60.07 80.88 98.96 117.45 142.43
* Related to Phase 3 and 4 of Pipeline Project development
14.3. The Project Solution.
The ambitious project of transporting water from Lake Victoria to the Metropolitan
City of Dodoma is quite rare in the World’s practice because of its great length 770
km. This scheme is chosen because Lake Victoria has a huge water reserve, and large
amount of water intake will not affect its water balance . The projected pipeline will
also supply drinking water to Mwanza, Shinyanga, Sindida and Tabora towns and
regions.
As most of similar project around the World, given Project Component is highly
costly and low-profitable. Nevertheless, the planned resettlement of the Capital and
the further development of Metropolitan City of Dodoma do not have an alternative
solution to the problem of providing the ity with high quality drinking water. This is
the reason, that Developer intends to use a significant part of income, generated by
the Energy Complex for re-financing this Project Component, to ensure high average
profitability of the entire project as a whole and for timely repayment of the debt.
Page 132 of 240

Fig. 14-3. Map of Water Pipeline Routing
Water Supply Project Component has divided into three Phases. The content of
each Phase shown in Table 14-2.
Page 133 of 240

Table 14-2. Content of Water Supply and Sanitation System Project
Item
№№ Description Phase 1 Phase 2 Phase 3*
Water Supply System

Water Intake Facility in Lamadia Village,
01 Lake Victoria. Total Designed Capacity X
420,000 cmd. 1st Phase: 140,000 cmd
Water Intake Facility Extension.
02 Capacity 280,000 cmd X
Water Intake Facility Extension.
03 Capacity 420,000 cmd X
Pipeline 1x 48” 770 km including 16 Pump
04 Stations Total Capacity 11.5 MW and X
Distribution Substations 132/11 kV
Pipeline 1x 48” 770 km including Extension
05 of 16 Pump Stations up to Total Capacity X
23.0 MW
Pipeline 1x 48” 770 km including extension
06 of 16 Pump Stations up to Total Capacity X
34.0 MW
Concrete Water Storage 1x 500,000 m3
07 (D=180 m, H=20 m) in Dodoma; X
08 (D=180 m, H=20 m) in Dodoma; X
09 (D=180 m, H=20 m) in Dodoma; X
Water Pre-Treatment Plant, Total Designed
10 Capacity 420,000 m3/day. X
1st Phase: Capacity 140,000 m3/day.
Water Pre-Treatment Plant. Extension of
11 Capacity up to 280,000 m3/day. X
Water Pre-Treatment Plant. Extension of
12 Capacity up to 420,000 m3/day. Х
Concrete Water Storage Tank 400,000 m
13 D=180 m H=20 m X
14 D=180 m H=20 m X
15 D=180 m H=20 m X
Water Purification Plant in Dodoma, Total
16 Designed Capacity 420,000 m3/day. X
1st Phase: Capacity 140 m3/day
Page 134 of 240

Extension of Water Purification Plant in X

17 Dodoma. 2nd Phase: Capacity 280 m3/day
Extension of Water Purification Plant in X
18 Dodoma.3rd Phase: Capacity 420 m3/day
Water Distribution System (Mainline)
19 within Satellite Wards, including 3x Water X X X
Towers Capacity 5,000 m3 each
Sanitation system
Sewage Main Line within Ntyuka and
20 Ngh’ongh’onha Satellite Wards (The X
Government City) capacity 120,000 m3/day
21 Sewage Purification Plant in Ntyuka Ward X

Sewage Main Line within Buigiri and
22 Chipogoro Satellite Wards X
Sewage Purification Plant in Chipogoro
23 Ward capacity 120,000 m3/day X
Sewage Main Line within Zanka and Kigwa
24 Satellite Wards X
Sewage Purification Plant in Zanka and
25 Kigwa Wards capacity 120,000 m3/day X
* For information only
14.4. Pipeline Hydraulics and Pipe Diameter Selection
Intake: Lake surface altitude above Sea level: 1,134 m

Destination: Dodoma City altitude above Sea level: 1,125 m
Here is assumed, that:
• Water flow is constant and the uneven consumption ratio is not taken into
account in the calculations, because water is delivered to reservoirs with a
regulating volume of water;
• For preliminary calculations, the ground profile is flat, and the head of pumps
and electric motors capacity, which is necessary to overcome the frictional
resistance between pumping stations where computed without taking into
account the static head. More detailed hydraulic calculations and Hydraulic
Profile are provided below.
The Table 14-3 lists some considerations regarding the selection of economically
advantageous pipe diameters to deliver the required amount of water.
Page 135 of 240

Table 14-3. Pipeline Diameter Selection.
Quantity
Description Unit
Option 1 Option 2
Pipe vendor code PVC DR32.5 PVC DR25
Inch 48” 42”
Diameter mm 1,219 1,067
psi 125 165
Max. working pressure mH2O 87.9 116.0
Max. economically optimal velocity ft/s 3.99 5.4
m/s 1.22 1.83
gpm 22,000 22,000
Flow L/s 1,388 1,388
psi/100 ft 0.033 0.069
Pressure drop (Friction loss) mH2O/km 0.76 1.59
Average Distance between PS km 50 40
Total Pressure drop in section psi 54 90
between PS mH2O 38 63.6
Number of Pump Stations required PS 16 20
Average capacity of PS kW 690 1,155
Total Pump Stations capacity kW 11,040 23,100
Electricity consumption GWh 96.7 202.4
Option 1 is selected, since the same amount of water can be transmitted using
electricity twice less than Option 2.
The capacity of pumps, serving pipeline, is described by equation:
Ph(kW) = q ρ g h / (3.6 106)
where:
Ph(kW) = hydraulic power (kW)

q = flow capacity, (4,997 m3/h)
ρ = density of fluid (1,000 kg/m3 )
g = gravity (9.81 m/s2)
h = dynamic + static + minimum required head (mH2O, variable)
h = hfriction + (H1 - H2) + 10m
where:
hfriction means flow/friction losses in pipes;

Page 136 of 240

H1 and H2 = altitude of beginning and the end of pipe (m);

10 mH2O = the minimum required head at the end of the pipe (add to PS1 only)
The shaft power:

Ps(kW) = Ph(kW) /
where:
Ps(kW) = shaft power (kW)

η = pump efficiency (0.75)
For example, the total power of Pumping Station №1 is:
Ps(kW) = 4,997 m3/h x 1,000 kg/m3 x 9.81 m/s2 x 61.0 m / 0.75 x 3.6 106 = 1,108 kW
The technical parameters of pump Stations shown in the Table 14-4.
Table 14-4. Pump Station Parameters
Pump Station Number

Description №1 №2 №3 №4 №5 №6 №7 №8
Distance between PS* km 50 50 50 50 50 50 50 50
Water Flow m3/h 4,997 4,997 4,997 4,997 4,997 4,997 4,997 4,997
Friction Loss** hfr mH2O 38.0 38.0 38.0 38.0 38.0 38.0 38.0 38.0
Ground Level H1 m 1,149.0 1,162.0 1,183 1,180 1,178 1,166 1,170 1,169
Ground Level H2 m 1,162.0 1,183.0 1,180 1,178 1,166 1,170 1,169 1,158
Static Pressure H1-H2, m 13.0 21.0 -3 -2 -12 4 -1 -11
Head Required h mH2O 61.0 59.0 35.0 36.0 26.0 42.0 37.0 27.0
PS Capacity kW 1,108 1,071 636 654 472 763 672 490
Total PS Capacity, kW
Phase 1
Phase 1 + Phase 2
Phase 1 + Phase 2 +
Phase 3 ***
Quantity of Pumps in Station: Working + Reserved
Phase 1 3+1 3+1 3+1 3+1 3+1 3+1 3+1 3+1
Phase 1 + Phase 2 6+2 6+2 6+2 6+2 6+2 6+2 6+2 6+2
Phase 1 + Phase 2 + 1
Phase 3 *** 10 + 3 10 + 3 10 + 3 10 + 3 10 + 3 10 + 3 10 + 3 0+3
* Deviation of distance is ±5%
** See Table 14-3 above
*** For information only
Page 137 of 240

Table 14-4. (continue)
Pumping Station Number

Description №9 № 10 № 11 № 12 № 13 № 14 № 15 № 16
Distance between PS* km 50 50 50 50 50 50 50 20
Water Flow m3/h 4,997 4,997 4,997 4,997 4,997 4,997 4,997 4,997
Friction Loss** hfr mH2O 38.0 38.0 38.0 38.0 38.0 38.0 38.0 15.0
Ground Level H1 m 1,158 1,140 1,146 1,142 1,140 1,135 1,130 1,128
Ground Level H2 m 1,140 1,146 1,142 1,140 1,135 1,130 1,128 1,127
Static Pressure H1-H2, m -18 6 -4 -2 -5 -5 -2 -1
Head Required h mH2O 20.0 44.0 34.0 36.0 33.0 33.0 36.0 14.0
PS Capacity kW 363 799 617 654 599 599 654 254
Total PS Capacity kW
Phase 1 10,405
Phase 1 + Phase 2 20,810
Phase 1 + Phase 2 +
Phase 3 *** 31,215
Number of Pumps in Station: Working + Reserved
Phase 1 3+1 3+1 3+1 3+1 3+1 3+1 3+1 3+1
Phase 1 + Phase 2 6+2 6+2 6+2 6+2 6+2 6+2 6+2 6+2
Phase 1 + Phase 2 +
Phase 3 *** 10 + 3 10 + 3 10 + 3 10 + 3 10 + 3 10 + 3 10 + 3 10 + 3
Fig. 14-4. Hydraulic Profile
Page 138 of 240

Fig. 14-4. Hydraulic Profile (Continue)
ROW Ground Profile

Water Pressure Profile
Table 14-5. Water Transmission Cost.
Quantity
Description Unit
1st Phase 1st + 2nd Phase 1st + 2nd +3rd Phase*
Total Pump Stations Capacity kW 10,405 20,810 31,215
Variable expenses
Electricity cost $.12/kWh $ 10,937,736 21,875,472 32,813,208
Fixed expenses
Pipeline linear workers worker 32 32 32
Pump Stations personnel worker 96 112 128
Pump Station security worker 96 96 96
Operation control worker 18 20 20
Total headcount worker 242 260 276
Monthly Average Earnings $ 700 700 700
Total Salary + 25% Social Benefits $ 2,541,000 2,730,00 2,898,000
Maintenance 0.5% $ 2,234,500 4,184,500 6,134,500
Amortization 7% (Pump stations) $ 1,029,000 1,486,800 1,944,600
Total fixed expenses $ 5,804,500 5,674,030 10,977,100
Total transmission cost $ 16,742,236 27,549,502 43,790,308
3
Water sold m /year 43,771,968 87,543,936 131,315,904
Net transmission cost $/1000 L .382 .315 .333
Page 139 of 240

14.5. Pipeline Construction

The water pipeline will be mounted using polyvinyl chloride (PVC) large-diameter
pipe 48”, which is the safe, long-lasting and most stable solution for potable water
transportation. The advantages of PVC pipes are:
• Maintains performance against tuberculation, corrosion and external

galvanic soil conditions without lining wrapping, coating or cathodic
protection;
• Keeps its smooth interior over long years of service with virtually no loss in
carrying capacity, allowing for savings in pumping costs, as well as savings on
the size of the pipe required;
• Light weight and easy to assembling, which saving on installation cost. Seated
in a deep groove, the flexible elastomeric Rieber gasket provides a tight seal
that protects the line from shock, vibration, earth movement and
compensates for expansion and contraction of pipe lengths, there is no field
mixing or application of cement. It’s a simple push-together joint that
remains tight under normal operating conditions;
• Can be yield-cut with a power saw or ordinary handsaw and be beveled
without the use of expensive or complicated machinery.
Fig. 14-5. Ring-Tite Joint of PVC Pipe
Page 140 of 240

PVC has the long-term hydrostatic strength to meet the accepted high safety
requirements of municipal water systems. It carries approval of ANSI/NSF Standard
61. The disadvantage of large diameter pipes is a quite large freight charges,
compare with the price of pipe itself, which is up to 15% of pipeline cost. This is a
reason, that Developer intends to create his own line (extruder) for the production
of medium and large diameter PVC pipes in Dodoma, which will reduce the total
cost of the project as more as 8%.
The trenching shall be done by heavy-duty large trencher ASTEC 1860 HD 1,200 hp
which could provide working speed of excavation from 180 to 250 m/h, depending
of the soil conditions.

Fig. 14-6 Trencher ASTEC 1860 HD Fig.14-7. Trenching
14.6. Water Intake Facility
Surface water from Lake Victoria is transported through an intake pipes directly from the
Lake into a Water Intake Facility (WIS) and Pre-Treatment Plant. The point of water intake
shall be located far from shore in deep water, where contamination is less likely.
The WIS is a critical component of the overall Project and will essentially convey raw or
untreated water from the Lake to the reservoirs of Water Pre-Treatment Facility. The
Water Intake Structure is a vertical reinforced concrete shaft, approximately 38 m
diameter and 50 m depth, that will be constructed onshore within the Pre-Treatment
Facility zone. This structure also includes six 72-inch inlet pipes with perforated ends that
will extend out into the Lake, to collect and convey raw water to the pumps, installed in
the shaft. The Water Intake Structure includes control valves which will allow operators
to manage water flow from various levels within the Lake based on water quality and
seasonal conditions. The WIS will also include a series of pumps that will convey the raw
or untreated water to the Water Treatment Facility and the system for flushing the inlet
pipelines by reversing the counterflow of water.
Page 141 of 240

Fig. 14-8. Water Intake on Lake Victoria
The onshore area and area around a surface water intake shall be secured and protected
the surrounding water and, probably the land that surrounds the water. This area of water
and land is called as an intake protection zone, or IPZ. Protecting it ensures a healthy supply
of water now and in the future.
It is extremely important to choosing properly the site for the Water Intake Facility and
exclude risk of pollution from a variety of activities on or near surface water intake can
negatively affect the quality of drinking water. Some examples include:
• Chemical storage
• Spreading of sewage treatment sludge
• Animal feedlots
• Use and spilling of fertilizers and pesticides
• Accidental spills of hazardous materials
• Septic systems
• Underground storage tanks
• Underground pipelines or sewer
• Mining activities
Page 142 of 240

• Wastewater discharge
• Sewage bypasses
• Storm water runoff
Fig. 14-9. Sample of Water Perforated Pipe Inlet (1st Phase)
14.7. Water Treatment Technology

The water pumped from Water Intake Facility going to Pre-Treatment Plant, located
on the same sanitation protected zone. Before transportation, raw water will pass
thru coagulation/flocculation, sedimentation, filtration and disinfection.
The method of treatment, configuration and facility capacity totally depends on

quality of raw water pumped from the Lake. Below is data of raw water, provided
by Japanese CRD Group experts:
Page 143 of 240

Table 14-6. Raw Water Quality Report
On the end of way, the water will undergo final treatment at the Water Purification
Plant including repeat coagulation, sedimentation, filtration, ozonation and pH
correction, before it pumped to the Water Storages in Dodoma.
Briefly, the treatment process is the following:
(a) Coagulation and Flocculation
During coagulation, liquid aluminum sulfate (alum) and/or polymer is added to

untreated (raw) water. When mixed with the water, this causes the tiny particles of
dirt in the water to stick together or coagulate. Next, groups of dirt particles stick
together to form larger, heavier particles called flocs which are easier to remove by
settling or filtration.
(b) Sedimentation
As the water and the floc particles progress through the treatment process, they
move into sedimentation basins where the water moves slowly, causing the heavy
floc particles to settle to the bottom. Floc which collects on the bottom of the basin
is called sludge and is piped to drying lagoons. In Direct Filtration, the sedimentation
Page 144 of 240

step is not included, and the floc is removed by filtration only.
(c) Filtration
Water flows through a filter designed to remove particles in the water. The filters
are made of layers of sand and ceramic gravel, and, if necessary, crushed anthracite.
Filtration collects the suspended impurities in water and enhances the effectiveness
of disinfection. The filters are routinely cleaned by backwashing.
(d) Disinfection
Water is disinfected before it enters the distribution system to ensure that any
disease-causing bacteria, viruses, and parasites are destroyed. Chlorine is used
because it is a very effective disinfectant, and residual concentrations can be
maintained to guard against possible biological contamination in the water
distribution system.
(e) Ozonation
Because of its excellent disinfection and oxidation qualities, ozone is used for
drinking water treatment. Ozone should be added at several points throughout the
treatment system, such as during pre-oxidation, intermediate oxidation or final
disinfection. Ozone used for pre-oxidation, before a sand filter or an active carbon
filter. After ozonation these filters will remove the remaining organic matter
(important for final disinfection).
This combination has several benefits:
• Removal of organic and inorganic matter

• Removal of micro-pollutants, such as pesticides
• Enhancement of the flocculation/coagulation-decantation process
• Enhanced disinfection and reduction of disinfection byproducts
• Odor and taste elimination
(f) Sludge Drying
Solids that are collected and settled out of the water by sedimentation and filtration
are removed to drying lagoons.
(g) Fluoridation
Water fluoridation is the treatment of community water supplies for the purpose of
Page 145 of 240

adjusting the concentration of the free fluoride ion to the optimum level sufficient
to reduce dental caries. Fluoridation may be required to fluoridate water in
accordance with the chemical analyses of raw water.
(h) pH Correction
Lime may be added to the filtered water to adjust the pH and stabilize the naturally
soft water in order to minimize corrosion in the distribution system, and within
customers' plumbing.
Fig. 14-10. Water Treatment Process
14.8. Water Towers

A water tower is an elevated structure supporting a water tank constructed at a
height sufficient to pressurize a water supply system for the distribution of potable
water, and to provide emergency storage for fire protection. Water towers operate
in conjunction with surface service reservoirs (Water Storages), which store treated
water close to where it will be used.
Water towers will supply water some time during power outages, because they use
hydrostatic pressure produced by elevation of water (due to gravity) to deliver water
Page 146 of 240

into domestic and industrial water distribution systems. A water tower also serves
as a reservoir to help with water needs during peak usage times. The water level in
the tower typically falls during the peak usage hours of the day, and then a pump
fills it back up during the night.
14.9. Water Storage.

A primary function of the Water Storage is to create a 7-day reserve of drinking
water for the City and the maintenance of a reasonably minimum pressure on the
district served by the reservoir in emergency case. Pump station on the Water
Purification Plant provide pressure sufficient to pump water to the top water level
of a reservoir. The minimum pressure in a district will occur should all pumps stop
with pressure provided by the static head of the reservoir.
Fig. 14-11. Water Storages Fig. 14-12. Water Tower
There are three cylindrical water storage facilities to be erected, each of which has
a capacity of 500,000 m, is made of prefabricated or monolithic reinforced concrete.
Dimensions: diameter 180 m, height 20 m.
The construction site should be located on a hill, at a level no less than 50 m higher
than the level of the consumer.
Page 147 of 240

14.10. Water Distribution System

The water distribution system in this Project includes only the main pipelines from Water
Storages to Water Towers. A detailed plan, included exact location of Treatment Plant,
Water Towers and Distribution Pipelines layout will be developed in the Master Plan of
the City. Nevertheless, for preliminary calculations, here is assumed, that:
• Numbers of Water Towers and its capacity (volume of water tank) for each satellite
Ward as shown in Table 14-2;
• The total length of distribution pipelines preliminary accepted as:
- Phase 1: Ntyuka and Ngh’ongh’ongha Satellite Wards (“Government City”):
85 km;
- Phase 2: Buigiru and Chipogoro Satellite Wards: 160 km;
- Phase 3: Zanka and Kigwa Satellite Wards: 95 km.
• Pipeline material is: PVC 235 psi average diameter 24”.
• The numbers of boosting pump stations for Phase 1, Phase 2 and Phase 3 are: 2, 7
and 9 accordingly.
• The Boosting Pump Stations utilisation ratio is 75%, due to daily unevenness
consumption.
14.11. Water Intake, Treatment and Distribution Cost

Below are a brief calculations of water intake, pre-treatment, final processing and
distribution of drinking water cost within satellite areas of the City of Dodoma. Calculation
of the quantity and cost of reagents was made on the basis of data on the composition of
raw water in Lake Victoria. Since the source water has a high turbidity, an average
consumption of 80 mg / L of the coagulant is used for water clarification, but it must be
experimentally adjusted, taking in account pH. Also,
the following reagents to be used: algaecides (copper sulphate, that kill algae), organic
inhibitors (chemicals that react with a metallic surface, giving the surface a certain level of
protection), chlorine dioxide (dose 6-7 mg/L) as a primary disinfectant, hydrogen peroxide
H2O2 (used to aid odour control and corrosion control, organic oxidation, metal oxidation
and toxicity oxidation) and ozone (for final drinking water disinfection and preparation).
The cost of electricity and chemical reagents cost takes a significant part of operation
expenses in water preparation.
Page 148 of 240

Table 14-7. Water Intake, Water Treatment and Water Distribution Cost
Quantity
Description Unit st
1 Phase 1 + 2nd Phase
st
1st + 2nd +3rd
Phase*
Water Intake
1st Elevation Pumps Capacity kW 654 1,308 1,962
Electricity Consumption kWh 5,729,040 11,458,080 17,187,120
Electricity Cost .12 $/kWh $ 687,485 1,374,970 2,062,454
Headcount of workers & security worker 51 54 57
Average Salary $/month 700 700 700
Total Wages + Social benefits 25% $ 535,500 567,000 598,500
Maintenance 5% $ 84,160 168,320 252,480
Amortization 7% $ 117,824 235,648 353,472
Total Intake Operation Expenses $ 1,424,969 2,345,938 3,266,906
Water Pre-Treatment Plant
Installed Equipment Capacity kW 785 1,570 2,355
Chemical Reagents: Algaecides, pH
Conditioner, Coagulant Al2(SO4)3,
Sodium Hypochlorite, Flocculant, $ 3,250,000 6,500,000 9,750,000
Corrosion Inhibitor
Sludge Treating and Disposing $ 737,720 1,475,440 2,213,160
Total Wages + Social benefits 25% $ 2,992,500 3,622,500 3,832,500
Maintenance 3% $ 1,973,300 2,861,300 3,749,300
Amortization 2% $ 1,315,500 1,907,500 2,499,500
Total Pre-Treatment Expenses $ 11,094,212 18,017,124 24,520,036
Water Purification Plant in Dodoma
Installed Equipment Capacity kW 680 1,360 2,040
Chemical Reagents: Coagulant
Al2(SO4)3, Sodium Hypochlorite,
Flocculant, Ozone $ 1,310,000 2,620,000 3,930,000
Sludge Treating and Disposing $ 370,900 741,800 1,112,700
Total Wages + Social benefits 25% $ 2,310,000 3,622,500 3,832,500
Maintenance 3% $ 1,311,000 1,900,000 2,490,000
Amortization 2% $ 874,000 1,140,000 1,660,000
Total Purification Expenses $ 6,890,716 11,453,932 15,169,648
Page 149 of 240


Quantity
Description Unit
1st Phase 1st + 2nd Phase 1st + 2nd +3rd
Phase*
Water Distribution System
Boosting Pumps Capacity kW 944 2,832 3,776
Utilization Ratio % 72 75 78
Total Wages + Social benefits 25% $ 945,000 2,100,000 2,625,000
Maintenance 5% $ 120,000 504,000 480,000
Amortization 7% $ 168,000 235,648 672,000
Total Distribution Expenses $ 1,947,480 5,072,397 6.873,078
Total Intake, Purification and
Distribution Expenses $ 21,357,377 36,889,391 49,829,668
Net Operation Cost $/m3 .488 .421 .380
14.12. Sewage Treatment Plants

Sewage will be treated close to where the sewage is created, which may be called
a "decentralized" system, which is serve each Satellite Ward or, united two close
located Wards. Sewage will be collected and transported by a network of pipes and
pump stations to a municipal treatment plants.
Sewage treatment involves three stages, called primary, secondary and tertiary
treatment.
Page 150 of 240

Fig. 14-13. Bird's eye view on Sewage Treatment Plant
Primary treatment consists of temporarily holding the sewage in a quiescent basin

where heavy solids can settle to the bottom while oil, grease and lighter solids float
to the surface. The settled and floating materials are removed and the remaining
liquid is subjected to secondary treatment. In the primary sedimentation stage,
sewage flows through large tanks, called "primary clarifiers". The tanks are used to
settle sludge while grease and oils rise to the surface and are skimmed off. Primary
settling tanks are equipped with mechanically driven scrapers that continually drive
the collected sludge towards a hopper in the base of the tank where it is pumped to
sludge treatment facilities.
Secondary treatment removes dissolved and suspended biological matter.

Secondary treatment is performed by indigenous, water-borne micro-organisms in
a managed habitat. Secondary treatment requires a separation process to remove
the micro-organisms from the treated water prior to discharge or tertiary treatment.
The Secondary treatment is designed to substantially degrade the biological content
of the sewage which are derived from human waste, food waste, soaps and
detergent. Plants treat the settled sewage liquor using aerobic biological processes.
To be effective, the biota requires both oxygen and food to live. The bacteria and
Page 151 of 240

protozoa consume biodegradable soluble organic contaminants (e.g. sugars, fats,

organic short-chain carbon molecules, etc.) and bind much of the less soluble
fractions into floc.
Fig. 14-14. Flow Chart of Sewage Treatment Plant
Applied Secondary treatment systems is a “suspended-growth” systems.

Suspended-growth systems include activated sludge, where the biomass is mixed
with the sewage and can be operated in a smaller space than trickling filters that
treat the same amount of water.
Tertiary treatment means that treated water undergo disinfection chemically or

physically (for example, by lagoons and microfiltration) prior to discharge into a
stream, river or wetland, or it can be used for the irrigation of a green way or park.
If it is sufficiently clean, it can also be used for groundwater recharge or agricultural
purposes.
Sewage water travel towards treatment plants via piping and in a flow aided by
gravity and pumps. The first part of filtration of sewage typically includes a bar
screen to filter solids and large objects which are then collected in dumpsters and
disposed of in landfills. Fat and grease will also be removed before the primary
treatment of sewage.
The place of discharge treated sewage will be determined by the Master Plan.
Page 152 of 240

14.13. Sewerage System
Sewers are pipes from buildings to the larger underground trunk mains, which
transport the sewage to sewage treatment facilities. Branch sewers are discharge
by gravity into trunk sewers at manholes. Lateral pipes, conveying sewage from an
individual building to a common gravity sewer line are out of this Project Component
and not included in this Study.
A sewer main is a line carrying sanitary sewage from lateral lines toward the
treatment plant. There are two types of sewer mains, applied in this Project
Component: force and gravity.
Design and sizing of trunk sewers depends of the population to be served over the
anticipated life of the sewer, and flow peaking from timing of daily routines. The
mainline sewer diameters are specified to maintain flow velocities generating
sufficient turbulence to minimize solids deposition within the sewer. Commercial
and industrial wastewater flows are also taken into account.
The Lift Station is necessary where gravity sewers serve areas at lower elevations at
the distant places, where the sewage treatment plants are located. The forced
sewerage will be designed on Phase 1, 2 and 3 according to the City Master Plan.
The Lift Station is a sewer sump that lifts accumulated sewage to a higher elevation.
The pump discharging a sewage through a pressurized force main to the treatment
facility sump.
Vertical shafts, made of precast concrete, called manholes, connect the mains to the
surface. The manholes are used for access to the sewer pipes for inspection and
maintenance, and as a means to vent sewer gases. They also facilitate vertical and
horizontal angles in otherwise straight pipelines.
Manholes are a round vertical pipe three or four feet in diameter and as deep as the
sewer line. The sewer line ends at the wall of the manhole. The water continues
through the manhole in a trough where it enters a line on the other side. Manholes
allow access to sewer lines. Manholes are generally spaced between 75 and 200 m
apart. The average distance, accepted in this Study is 150 m and will be clarified in
FEED.
Page 153 of 240

14.14. Sewage Treatment and Sewerage System Operation Cost
The sewage system in this Project includes only the trunk sewers, collected sewage from
laterals within satellite Wards and forced sewage pipelines from Lift Stations to the
Treatment Plants. A detailed plan, included exact location of Treatment Plants, trunk
sewers and Lift Stations location will be developed in the Master Plan of the City.
For preliminary calculations, it is assumed, that:
• Uneven daily ratio of sewage flow is 1.2

• The Lifting Stations utilisation ratio is 75%, due to daily unevenness consumption.
Table 14-8. Sewerage Operation Cost
Quantity
Description Unit 1st Phase 1st + 2nd Phase 1st + 2nd + 3rd Phase*
Gravity Sewerage
Length of gravity trunk km 35 85 130
Pipeline diameter inches 42” – 78” 42” – 78” 42” – 78”
Number of manholes manhole 235 570 870
Forced Sewerage
Length of forced pipeline, km 2x 30 2x 35 2x 30
double pipeline for each for each for each Phase for each Phase
direction Phase
Pressured Pipeline Diameter inch 2x 18” 2x 18” 2x 18”
Average head required mH2O 60 68 60
5,900 4,800 5,380
Flow, max. Rdaily=1.2 m3/h for each for each Phase for each Phase
Phase
kW 2x 643 2x 593 2x 586
Capacity of Lift Stations for each for each Phase for each Phase
Phase
unit 2 2 2
Quantity of Lift Stations for each for each Phase for each Phase
Phase
Electricity Consumption kWh 8,449.020 16,241,040 23,941,080
(Ru=0.75)
Electricity Cost $ 1,013,882 1,948,925 2,872,930
Headcount of workers worker 87 177 264
Average salary $/month 700 700 700
Total wages + 25% Social $ 913,500 1,858,000 2,771,500
Benefits
Maintenance 3% $ 1,242,000 2,385,000 3,291,000
Page 154 of 240

Amortisation 2% $ 828,000 1,590,000 2,194,000

Total Sewerage Operation $ 3,997,382 7,781,925 11,129,430
Cost
Sewage Treatment Plant
Treatment Plant Capacity m3/day 120,000 120,000 120,000
for each for each Phase for each Phase
Phase
Installed Equipment Capacity kW 880 880 880
for each for each Phase for each Phase
Phase
Electricity Cost $ 935,856 1,871,712 2,807,568
Reagents Cost $ 1,445,400 2,890,800 4,336,200
Residue utilization $ 370,000 740,000 1,110,000
Headcount of workers worker 126 252 378
Average salary $/month 700 700 700
Total wages + 25% Social $ 1,323,000 2,646,000 3,969,000
Benefits
Maintenance 3% $ 2,177,700 4,355,400 6,533,100
Amortisation 2% $ 1,451,800 2,903,600 4,355,400
Total Treatment Operation $ 7,703,756 15,407,512 23,111,268
Cost
Total Sewerage Operation $ 11,701,138 23,189,437 34,240,698
Cost
Net Operation Cost $/m3 .267 .265 .261
14.15. Estimated Project Budget
Table 14-9. Phase 1. Water Supply and Sanitation System. Estimated Project
Included in
Purchase
DESCRIPTION VENDOR NAME OR Included in Construction Totals
OTHER INFORMATION Purchase Equipment As- Environmental Bulks &
Equipment Services
WATER PIPELINE.
BASE EQUIPMENT & MATERIALS
PVC PIPE DR32.5 165 psi 48” x 20’ One unit package $ 383,460,000 $ 383,460,000 $ 383,460,000
WEIGHT 266 kg/m, 770 km
PUMP STATION WITH

3 + 1 CENTRIFUGAL PUMPS 2 units $ 980,000 $ 1,960,000 $ 1,960,000
Q=2,100 m3/h H=95 psi 380 kW
RUHRPUMPEN
Page 155 of 240

PUMP STATION WITH

3 + 1 CENTRIFUGAL PUMPS 14 units $ 910,000 $ 12,740,000 $ 12,740,000
Q=2,100 m3/h H=56 psi 220 kW
RUHRPUMPEN
STEP-DOWN
TRANSFORMERSUBSTATION 132 kVa 16 units $ 290,000 $ 4,640,000 $ 4,640,000
POWER LINE 132 kV 210 km One unit package $ 44,100,000 $ 44,100,000 $ 44,100,000
SITE & ROW PREPARATION UNAWARDED $ 7,700,000 $ 7,700,000

TRENCHING, EXCAVATION AND PIPE
LYING DOWN UNAWARDED $ 192,500,000 $ 192,500,000
132 kV POWER LINE 700 km
ON-SITE SURVEY

MANAGEMENT $ 18,500,000 $ 18,500,000
TOTAL, WATER PIPELINE $446,900,000 $ 200,000 $ 269,492,307 $ 716,592,307
WATER INTAKE AND PUMP STATION

OF FIRST LIFTING
VERTICAL SHAFT AND BULDING
CONSTRUCTION MATERIALS One unit package $ 3,250,000 $ 3,250,000 $ 3,250,000
SUCTION INLET PIPELINE WITH
SCREENERS AND VALVES 6 units $ 170,000 $ 1,020,000 $ 1,020,000
3 + 1 CENTRIFUGAL PUMPS
Q=2,100 m3/h H=40 psi 218 kW 4 units $ 220,000 $ 880,000 $ 880,000
RUHRPUMPEN
CONTROL AND MONITORING
SYSTEM One unit package $ 310,000 $ 310,000 $ 310,000
SITE PREPARATION UNAWARDED $ 150,000 $ 150,000
MATERIAL HANDLING UNAWARDED $ 180,000 $ 180,000

EXCAVATION, TUNNEL AND
CONCRETE WORKS AND PIPE LYING UNAWARDED $ 5,203,000 $ 5,203,000
DOWN
PUMPING BUILDING CONSTRUCTION UNAWARDED $ 1,080,000 $ 1,080,000
TESTING & COMMISSIONING UNAWARDED $ 630,000 $ 630,000
ON-SITE SURVEY UNAWARDED

MANAGEMENT WORLEY PARSONS $ 500,000 $ 500,000
TOTAL, WATER INTAKE $ 5,460,000 $ 200,000 $ 8,663,077 $ 14,323,077
WATER PRE-TREATMENT PLANT

CONCRETE RECEIVING TANK AND
PRE-FILTERS 2 units $ 1,890,000 $ 3,780,000 $ 3,780,000
COAGULATION BASIN. EQUIPMENT &
MATERIALS 2 units $ 2,250,000 $ 4,500,000 $ 4,500,000
FLOCCULATION BASIN. EQUIPMENT
& MATERIALS 2 units $ 2,110,000 $ 4,220,000 $ 4,220,000
SLOW SAND FILTERS.
SEDIMENTATION TANKS. MATERIALS 2 units $ 3,080,000 $ 6,160,000 $ 6,160,000
& EQUIPMENT
CHLORINE DISINFECTION
EQUI{MENT 2 units $ 1,220,000 $ 2,440,000 $ 2,440,000
SOLID RESIDUE HANDLING
FACILITY. MATERIALS & EQUIPMENT 2 units $ 2,133,000 $ 4,266,000 $ 4,266,000
Page 156 of 240

AUXILIARY EQUIPMENT, METERS

AND LABORATORY 2 package $ 1,100,000 $ 2,200,000 $ 2,200,000
BUILDING STRUCTURES AND
MATERIALS 1 unit package $ 3,830,000 $ 3,830,000 $ 3,830,000
EXCAVATION & CONCRETE WORKS UNAWARDED $ 19,330,000 $ 19,330,000

BUILDING CONSTRUCTION
MATERIALS & EQUIPMENT UNAWARDED $ 4,156,308 $ 4,156,308
PIPING AND EQUIPMENT
INSTALLATION UNAWARDED $ 5,640,000 $ 5,640,000

TOTAL, PRE-TREATMENT PLANT $ 31,396,000 $ 300,000 $ 33,196.308 $ 64,892,308
WATER PURIFICATION PLANT IN

DODOMA
CONCRETE RECEIVING TANK 2 units $ 1,890,000 $ 3,780,000 $ 3,780,000

MATERIALS 2 units $ 2,250,000 $ 4,500,000 $ 4,500,000
& MATERIALS 2 units $ 2,110,000 $ 4,220,000 $ 4,220,000
PRESSURED FILTERS 2 unit package $ 910,000 $ 1,820,000 $ 1,820,000

SEDIMENTATION TANKS. MATERIALS
& EQUIPMENT 2 units $ 720,000 $ 1,440,000 $ 1,440,000
OZONE DISINFECTION EQUI{MENT 2 units $ 420,000 $ 840,000 $ 840,000

SOLID RESIDUE HANDLING
FACILITY. MATERIALS & EQUIPMENT 2 units $ 555,000 $ 1,110,000 $ 1,110,000
AUXILIARY EQUIPMENT, METERS
AND LABORATORY 1 unit package $ 1,100,000 $ 1,100,000 $ 1,100,000
BUILDING STRUCTURES AND
MATERIALS 1 unit package $ 2,900,000 $ 2,900,000 $ 2,900,000

BUILDING CONSTRUCTION
MATERIALS & EQUIPMENT UNAWARDED $ 4,290,000 $ 4,290,000
ON-SITE SURVEY UNAWARDED $ 500,000 $ 500,000

TOTAL, PURIFICATION PLANT $ 21,710,000 $ 300,000 $ 21,105,385 $ 43,115,385
WATER DISTRIBUTION SYSTEM
PVC PIPE DR18 235 psi 24” x 20’ One unit package $ 14,025,000 $ 14,025,000 $ 14,025,000
WEIGHT 116 kg/m, 85 km
Page 157 of 240

BOOSTING PUMP STATION 472 KW 2 units $ 670,000 $ 1,340,000 $ 1,340,000

Q=2,880 m3/h H=72 mH2O
STEEL PRE-FABRICATED WATER
TOWER V=5,000 m3 2 units $ 575,000 $ 1,150,000 $ 1,150,000
ELECTRIC DRIVEN VALVES 24” 50 units $ 25,000 $ 1,250,000 $ 1,250,000
CONCRETE WATER STORAGE One unit package $ 2,290,000 $ 2,290,000 $ 2,290,000

500,000 m3 D=180 m H=20 m
AUTOMATIC CONTROL AND
MONITORING SYSTEM One unit package $ 560,000 $ 560,000 $ 560,000

BUSTING PUPMP STASTIONS
TRENCHING & PIPE LAYDOWN UNAWARDED $ 17,000,000 $ 17,000,000
WATER STORAGE CONSTRUCTION UNAWARDED $ 2,260,385 $ 2,260,385
WATER TOWER INSTALLATION UNAWARDED $ 980,000 $ 980,000
CONTROL & MONITORING SYSTEM UNAWARDED $ 240,000 $ 240,000

INSTALLATION

TOTAL, WATER DISTRIBUTION $ 20,615,000 $ 200,000 $ 31,800,385 $ 52,615,385

SYSTEM
GRAWITY AND FORCED SEWERAGE
CONCRETE PIPES 42”-78” 35 km One unit package $ 19,250,000 $ 19,250,000

CONCRETE MANHOLES D=1.5 m
Average H=3 m 235 units $ 3,800 $ 893,000
LIFTING STATION 2 units $ 2,600,000 $ 5,200,000

FORCED PIPELINE PVC 2x 18”
WEIGHT 116 kg/m 265 psi 30 km One unit package $ 13,200,000 $ 13,200,000
LIFTING STASTION CONSTRUCTION UNAWARDED $ 3,880,000 $ 3,880,000

TRENCHING & PIPE LAYDOWN FOR
GRAVITY SEWERAGE UNAWARDED $ 7,700,000 $ 7,700,000
MANHOLES INSTALLATION UNAWARDED $ 1,527,500 $ 1,527,500

FORCED SEWERAGE UNAWARDED $ 4,717,192 $ 4,717,192
CONTROL & MONITORING SYSTEM
INSTALLATION UNAWARDED $ 260,000 $ 260,000
ON-SITE SURVEY
GEOLOGY SURVEY SERVICES $ 750,000 $ 750,000
TOPOGRAPHY WORKS $ 150,000 $ 150,000
ENGINEERING, PROJECT $ 3,200,000 $ 3,200,000

MANAGEMENT
TOTAL, SEWERAGE SYSTEM $ 38,543,000 $ 180,000 $ 24,634,692 $ 63,357,692
Page 158 of 240

SEWAGE TREATMENT PLANT All units x 2
RECEIVING CHAMBER UNAWARDED $ 1,130,000 $ 2,260,000 $ 2,260,000
MECHANICAL COURSE SCREENER UNAWARDED $ 680,000 $ 1,360,000 $ 1,360,000
AERATED GRIT CHANNEL UNAWARDED $ 1,230,500 $ 2,461,000 $ 2,461,000
FINE SCREENER UNAWARDED $ 890,000 $ 1,780,000 $ 1,780,000
SKIMMING TANK UNAWARDED $ 1,040,000 $ 2,080,000 $ 2,080,000

PRIMARY SEDIMENTATION
CIRCULAR TANK UNAWARDED $ 2,040,000 $ 4,080,000 $ 4,080,000
AERATION TANK UNAWARDED $ 1,792,050 $ 3,584,100 $ 3,584,100
SECONDARY SEDIMENTATION TANK UNAWARDED $ 2,040,000 $ 4,080,000 $ 4,080,000
AEROBIC SLUDGE DIGESTER UNAWARDED $ 1,020,000 $ 2,040,000 $ 2,040,000
METHANE TANK UNAWARDED $ 800,400 $ 1,600,800 $ 1,600,800
SLUDGE DEWATERING CHAMBER UNAWARDED $ 930,000 $ 1,860,000 $ 1,860,000
SLUDGE DRYING BEDS UNAWARDED $ 1,080,500 $ 2,161,000 $ 2,161,000

ANAEROBIC WASTEWATER
TREATMENT POND (LAGOON} UNAWARDED $ 1,440,000 $ 2,880,000 $ 2,880,000
RESERVOURS CONSTRUCTION: UNAWARDED $ 11,650,000 $ 11,650,000

EXCAVATION, CONCRETE WORKS
BASIC EQUIPMENT INSTALLATION UNAWARDED $ 9,750,000 $ 9,750,000
BUILDING CONSTRUCTION UNAWARDED $ 3,970,000 $ 3,970,000

ON-SITE SURVEY

MANAGEMENT
TOTAL SEWAGE TREATMENT $ 32,226,900 $ 200,000 $ 39,188,485 $ 71,615,385

PLANT
TOTAL, WATER SUPPLY AND $1,026,511,539

SANITATION SYSTEM, PHASE 1

Commission Fee and Financial Service: $ 1,334,465,000
Total Project Cost : $ 1,404,700,000
Page 159 of 240

Table 14-10. Phase 2. Water Supply and Sanitation System. Estimated Project
Included in
Purchase
DESCRIPTION VENDOR NAME OR Included in Construction Totals
OTHER INFORMATION Purchase Equipment As- Environmental Bulks &
Equipment Services
WATER PIPELINE.
BASE EQUIPMENT & MATERIALS
PVC PIPE DR32.5 165 psi 48” x 20’
WEIGHT 266 kg/m, 770 km One unit package $ 383,460,000 $ 383,460,000 $ 383,460,000
Q=2,100 m3/h H=95 psi 380 kW
RUHRPUMPEN 2 x package $ 470,000 $ 940,000 $ 960,000
Q=2,100 m3/h H=56 psi 220 kW
RUHRPUMPEN 14 x package $ 400,000 $ 5,600,000 $ 5,600,000
TRENCHING AND PIPE LYING DOWN UNAWARDED $ 192,500,000 $ 192,500,000
ON-SITE SURVEY
MANAGEMENT $ 2,800,000 $ 2,800,000
TOTAL, WATER PIPELINE $390,000,000 $ 199,000,000 $ 589,000,000
WATER INTAKE AND PUMP STATION

OF FIRST LIFTING
Q=2,100 m3/h H=40 psi 218 kW 4 units $ 220,000 $ 880,000 $ 880,000
RUHRPUMPEN
PUMP INSTALLATION UNAWARDED $ 219,231 $ 219,231

TOTAL, WATER INTAKE $ 880,000 $ 289,231 $ 1,169,231
WATER PRE-TREATMENT PLANT

CONCRETE RECEIVING TANK AND
PRE-FILTERS 2 units $ 1,890,000 $ 3,780,000 $ 3,780,000
MATERIALS 2 units $ 2,250,000 $ 4,500,000 $ 4,500,000
& MATERIALS 2 units $ 2,110,000 $ 4,220,000 $ 4,220,000
SLOW SAND FILTERS.
SEDIMENTATION TANKS. MATERIALS 2 units $ 3,080,000 $ 6,160,000 $ 6,160,000
& EQUIPMENT


TOTAL, PRE-TREATMENT PLANT $ 18,660,000 $ 14,809,231 $ 33,469,231
WATER PURIFICATION PLANT IN

DODOMA
CONCRETE RECEIVING TANK 2 units $ 1,890,000 $ 3,780,000 $ 3,780,000
Page 160 of 240


MATERIALS 2 units $ 2,250,000 $ 4,500,000 $ 4,500,000
& MATERIALS 2 units $ 2,110,000 $ 4,220,000 $ 4,220,000
PRESSURED FILTERS 2 unit package $ 910,000 $ 1,820,000 $ 1,820,000

SEDIMENTATION TANKS. MATERIALS
& EQUIPMENT 2 units $ 720,000 $ 1,440,000 $ 1,440,000


TOTAL, PURIFICATION PLANT $ 15,760,000 $ 7,990,000 $ 23,750,000
WATER DISTRIBUTION SYSTEM

PVC PIPE DR18 235 psi 24” x 20’
WEIGHT 116 kg/m, 85 km One unit package $ 26,400,000 $ 26,400,000 $ 26,400,000
BOOSTING PUMP STATION 472 KW
Q=2,880 m3/h H=72 mH2O 5 units $ 670,000 $ 3,350,000 $ 3,350,000
STEEL PRE-FABRICATED WATER
TOWER V=5,000 m3 2 units $ 575,000 $ 1,150,000 $ 1,150,000
ELECTRIC DRIVEN VALVES 24” 90 units $ 25,000 $ 2,250,000 $ 2,250,000

CONCRETE WATER STORAGE
500,000 m3 D=180 m H=20 m One unit package $ 2,290,000 $ 2,290,000 $ 2,290,000
AUTOMATIC CONTROL AND
MONITORING SYSTEM One unit package $ 560,000 $ 560,000 $ 560,000

BUSTING PUPMP STASTIONS
TRENCHING & PIPE LAYDOWN UNAWARDED $ 32,000,000 $ 32,000,000
WATER STORAGE CONSTRUCTION UNAWARDED $ 2,260,385 $ 2,260,385
WATER TOWER INSTALLATION UNAWARDED $ 948,077 $ 948,077


TOTAL, WATER DISTRIBUTION
SYSTEM $ 36,000,000 $ 48,988,462 $ 84,988,462
GRAWITY AND FORCED SEWERAGE
CONCRETE PIPES 42”-78” 85 km One unit package $ 46,750,000 $ 46,750,000 $ 46,750,000

CONCRETE MANHOLES D=1.5 m
Average H=3 m 570 units $ 3,800 $ 2,166,000 $ 2,166,000
LIFTING STATION 2 units $ 2,600,000 $ 5,200,000 $ 5,200,000

FORCED PIPELINE PVC 2x 18”
WEIGHT 116 kg/m 265 psi 30 km One unit package $ 15,400,000 $ 15,400,000 $ 15,400,000
SITE PREPARATION UNAWARDED $ 1,050,000 $ 1,050,000
Page 161 of 240

LIFTING STASTION CONSTRUCTION UNAWARDED $ 3,880,000 $ 3,880,000

GRAVITY SEWERAGE UNAWARDED $ 18,700,000 $ 18,700,000
MANHOLES INSTALLATION UNAWARDED $ 3,705,000 $ 3,705,000

FORCED SEWERAGE UNAWARDED $ 5,466,693 $ 5,466,693
ON-SITE SURVEY
ENGINEERING, PROJECT $ 3,800,000 $ 3,800,000

MANAGEMENT
TOTAL, SEWERAGE $ 69,516,000 $ 180,000 $ 40,248,390 $ 109,907,693
SEWAGE TREATMENT PLANT All units x 2
RECEIVING CHAMBER UNAWARDED $ 1,130,000 $ 2,260,000 $ 2,260,000
MECHANICAL COURSE SCREENER UNAWARDED $ 680,000 $ 1,360,000 $ 1,360,000
AERATED GRIT CHANNEL UNAWARDED $ 1,230,500 $ 2,461,000 $ 2,461,000
FINE SCREENER UNAWARDED $ 890,000 $ 1,780,000 $ 1,780,000
SKIMMING TANK UNAWARDED $ 1,040,000 $ 2,080,000 $ 2,080,000

PRIMARY SEDIMENTATION
CIRCULAR TANK UNAWARDED $ 2,040,000 $ 4,080,000 $ 4,080,000
AERATION TANK UNAWARDED $ 1,792,050 $ 3,584,100 $ 3,584,100
SECONDARY SEDIMENTATION TANK UNAWARDED $ 2,040,000 $ 4,080,000 $ 4,080,000
AEROBIC SLUDGE DIGESTER UNAWARDED $ 1,020,000 $ 2,040,000 $ 2,040,000
METHANE TANK UNAWARDED $ 800,400 $ 1,600,800 $ 1,600,800
SLUDGE DEWATERING CHAMBER UNAWARDED $ 930,000 $ 1,860,000 $ 1,860,000
SLUDGE DRYING BEDS UNAWARDED $ 1,080,500 $ 2,161,000 $ 2,161,000

ANAEROBIC WASTEWATER
TREATMENT POND (LAGOON} UNAWARDED $ 1,440,000 $ 2,880,000 $ 2,880,000

RESERVOURS CONSTRUCTION:
EXCAVATION, CONCRETE WORKS UNAWARDED $ 11,650,000 $ 11,650,000
BASIC EQUIPMENT INSTALLATION UNAWARDED $ 9,750,000 $ 9,750,000
BUILDING CONSTRUCTION UNAWARDED $ 3,970,000 $ 3,970,000

ON-SITE SURVEY

MANAGEMENT
TOTAL SEWAGE TREATMENT
PLANT $ 32,226,900 $ 200,000 $ 39,188,485 $ 71,615,385
TOTAL, WATER SUPPLY AND $ 913,900,000

SANITATION SYSTEM PHASE 2
Page 162 of 240


Commission Fee and Financial Service: $ 1,188,070,000
Total Project Cost : $ 1,250,600,000
XV. FINANCIAL ANALYSIS
15.1. Methodology
The aim of financial analysis is to:
• understand the entity's operations by reviewing its physical and money flows;
• assess the entity's financial balance, and thus the viability of its operations;
• assess the entity's efficiency and estimate the likely financial return on
investment.
This chapter gives a broad outline of financial analysis.
For each of the Project Component, taking part in entire Project, analysis based on
the inputs, computed in Chapter VII to XIV, which contains:
• Costs: the operating and investment expenses (outlays and non-monetary

flows);
• Benefits: the revenues, resulting from the Project Components activity.
There are the following criteria used for estimate a solvency viability of the Project
and Project Components:
• The payback period: this indicates to an Investor/Lender the time it will take
him to recover his investment;
• The net present value (NPV) and the discounted benefit-cost ratio, the
relative enrichment rate;
Page 163 of 240

• The internal rate of return (IRR), which is compared with the opportunity
cost of capital in constant prices, is the criterion most often used.
15.2. Financial Schedule and Cash Flow
Below is the Table 15-1. Financial Schedule, Cash Flow and Post-Financing Cash Flow
Statement, which composed for each Project Component as well as summarized for
the Energy Complex separately, wherein the following assumptions were made:
1. The Price escalation for equipment, material and labor will not exceed +2% a
year for the nearest five-year period;
2. The PPA or off-take Agreement include an annual payment escalation for

inflation. The escalation of electricity tariff and natural gas sale price is 3%
range per year over the life span to off-set inflation and increasing operating
expenses;
3. The purchase price of natural gas at the Injection Station, sold by Gas
Producer to the Developer under Gas Purchase Agreement, will not change
during 10 years from the date of Project component operation;
4. The 100% of income, generated by assets, is used to provide a steady cash

flow stream over the life of the Project Agreements and is used to underwrite
debt service for financing;
5. Capitalization of interest payments (i.e. adding the amount of interests due

to the principal) is occur within the repayment period, especially during the
construction time;
6. When computing the debt service, the accounting convention is adopted: all
of the flows registered in the relevant year are considered due on the final
day of that year;
7. The Loan interest is not exceeded 5% and fixed during financial period;
8. All production and services, generated by assets, are considered payable in

full and on-time under relevant Project Agreements between Developer and
Utility.
Page 164 of 240

Also, for providing a more expressive picture, the following charts are presented
below, which been drafted based on projected CAPEX, OPEX, revenue, net income
and cumulative Cash Flow.
There are:
• Chart of Cash Balance for each Project Component;
• Chart of Cumulative Cash Balance for total Energy Complex, except

Water/Sewage Project;
• Chart of Cash Balance of Project Components included to the Energy

Complex, which is compare of financial viability of each Project Component;
• Comparative Charts of Cash Balance for Project Components and for entire
Project.
Page 165 of 240

Table 15-1. Financial Schedule and Cash Flow (Base Case)
Designation:
Investments Million US$

Operation Revenue Million US$
Net Income Million US$
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
№ Description I II I II I II I II I II I II I II I II I II I II
01 1. PREPARATION WORKS AND FINANCIAL ARRANGEMENT

02 Pre-Feasibility
Study. $0.5
03 FS and Master Plan.
Financial Closing $0.5
05 2. PHASE 1. DUAL FUEL POWER PLANT 450 MW

06 Equipment &
Materials $170 $200 $120
07 Construction and
Commissioning $45 $45 $45
Block №1
08 Construction and
Commissioning $45 $45 $45
Block №2
09 Operation
Revenue $118 $487 $501 $516 $530 $544 $558 $572
10 Operation Cost $80 $320 $218 $218 $218 $218 $218 $218
11 Net Income $38 $167 $283 $298 $312 $326 $340 $354
12 Cumulative Profit
(Loss) ($170) ($629) ($757) ($628) ($376) ($97)
13 Interest 5% $4 $31 $38 $3 $19 $5
14 Project Balance ($174) ($660) ($795) ($659) ($395) ($102) $210 $536 $876 $1,230
Page 166 of 240

№ Description 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
I II I II I II I II I II I II I II I II I II I II
15 3. PHASE 1. COMBINED CYCLE POWER PLANT 852 MW

16 Equipment &
materials. $180 $230 $210 $100
17 Construction and
Commissioning $30 $40 $50 $50 $30
Block №1
18 Construction and
Commissioning $30 $40 $50 $50 $30
Block №2
19 Revenue $231 $949 $976 $1,003 $1,030 $1,057 $1,084
20 Operation cost $97 $389 $389 $389 $389 $389 $389
21 Net Income $134 $560 $587 $614 $641 $668 $695
(Loss) ($180) ($729) ($1,055) ($1,084) ($578) ($20) $593 $1,234 $1,902 $2,597
23 Interest 5% $9 $36 $53 $54 $29 $1
24 Project Balance ($189) ($765) ($1,108) ($1,138) ($607) ($21) $593 $1,234 $1,902 $2,597
25 4. PHASE 2. COMBINED CYCLE POWER PLANT 1,704 MW
26 Equipment &
materials. $360 $460 $420 $200
27 Construction and
Commissioning $60 $80 $90 $90 $50
Block №1
28 Construction and
Commissioning $60 $80 $90 $90 $50
Block №2
29 Revenue $475 $1,952 $2,006 $2,060 $2,114 $2,167
30 Operation cost $241 $965 $965 $965 $965 $965
31 Net Income $234 $987 $1,041 $1,095 $1,149 $1,202
(Loss) ($880) ($1,854) ($2,167) ($2,091) ($1,209) ($229) $854 $2,003 $3,205
33 Interest 5% 44 93 108 $105 $61 $12
34 Project Balance ($924) ($1,847) ($2,275) ($2,196) ($1,270) ($241) $854 $2,003 $3,205
Page 167 of 240

№ Description 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
35 5. PHASE 1 & 2. GAS PIPELINE 1,574 KM KINYEREZI-DODOMA-SHINYANGA-UGANDA BORDER

36 PHASE 1.
FEED and Detailed $170 $200 $140
Design. Equipment
and Materials.
37 PHASE 1.
Construction. $180 $320 $330 $330 $298
Testing and
Commissioning.
38 PHASE 2.
FEED and Detailed $210 $250 $250 $70
Design. Equipment
and Materials.
39 PHASE 2.
Construction. $260 $400 $400 $400 $400 $480
Testing and
Commissioning.
40 Gas Flow,
MMBtu/annum 39,321,450 346,777,740 346,777,740 346,777,740 346,777,740 346,777,740 346,777,740
41 Operation
Revenue $248 $2,644 $2,682 $2,720 $2,758 $2,796 $2,834
42 Operation Cost $17 $127 $127 $127 $127 $127 $127
43 Gas Purchase $126 $1,035 $1,035 $1,035 $1,035 $1,035 $1,035
44 Net Income $105 $1,482 $1,520 $1,558 $1,596 $1,634 $1,672
(Loss) ($170) ($2,139) ($4,026) ($5,300) ($4,083) ($2,767) ($1,347) $182 $1,816 $3,488
46 Interest 5% $9 $107 $201 $265 $204 $138 $67
47 Project Balance ($179) ($2,246) ($4,227) ($5,565) ($4,287) ($2,905) ($1,414) $182 $1,816 $3,488
Page 168 of 240

№ Description 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6. PHASE 1 & PHASE 2. HIGH VOLTAGE TRANSMISSION LINES DODOMA-SHINYANGA-BIHARAMULO-UGANDA BORDER 1,012 KM
FEED, Detailed
Engineering $90 $100 $70
Resign, Routing
HVDC 500 kV
Dodoma-
Shinyanga 490 km.
Equipment & $200 $460 $460 $370 $320
Materials Procure,
Construction &
Commissioning
HVDC 500 kV
Shinyanga –
Buharamulo 310 $170 $170 $250 $190 $180
km. Construction
& Commissioning
HVAC 400 kV
Biharamulo-
Uganda 212 km. $80 $80 $80 $80 $50
Construction &
Commissioning
Electricity
Transmitted, GWh 8,760 21,024 21,024 21,024 21,024 21,024 21,024
Operation
Revenue $526 $1,299 $1,337 $1,375 $1,413 $1,451 $1,489
Operation Cost
(Incl. Power Loss) $78 $120 $120 $120 $120 $120 $120
Net Income $448 $1,179 $1,217 $1,255 $1,293 $1,331 $1,369
Cumulative Profit
(Loss) ($290) ($1,815) ($3,196) ($3,218) ($2,200) ($1,093) $107 $1,400 $2,731 $4,100
Interest 5% $15 $91 $160 $161 $110 $55
Project Balance ($305) ($1,906) ($3,356) ($3,379) ($2,310) ($1,148) $107 $1,400 $2,731 $4,100
Page 169 of 240

\
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
46 7. PHASE 1. STRATEGIC FUEL STORAGE 500,000 M3

47 Equipment and
Materials Supply $180 $180 $63
48 Construction
Works $45 $55 $55 $60
49 Testing and
Commissioning $2
Sales, Mm3/year 1.000 1.575 1.575 1.575 1.575 1.575 1.575
50 Operation revenue $241 $379 $379 $379 $379 $379 $379
51 Operation cost $40 $81 $81 $81 $81 $81 $81
52 Net Income $201 $298 $298 $298 $298 $298 $298
(Loss) ($180) ($532) ($676) ($509) ($236) $50 $348 $646 $944 $1,242
54 Interest 5% $9 $27 $34 $25 $12
55 Project Balance ($189) ($559) ($710) ($534) ($248) $50 $348 $646 $944 $1,242
56 8. PHASE 1 & PHASE 2. SUMMARIZED CASH BALANCE FOR ENERGY COMPLEX.

57 INVESTMENT $991 $5,688 $4,542 $1,918 $50
REVENUE $118 $1,733 $6,247 $7,842 $8,013 $8,184 $8,355 $8,525
58 NET INCOME $38 $754 $4,036 $4,907 $5,078 $5,429 $5,420 $5,590
59 CUMULATIVE
PROFIT (LOSS) ($991) ($6,729) ($11,570) ($13,313) ($9,993) ($5,586) ($787) $4,603 $10,023 $15,613
60 INTEREST 5% $50 $337 $579 $666 $500 $279 $39
61 ENERGY PROJECT
BALANCE ($1,041) ($7,066) ($12,149) ($13,979) ($10,493) ($5,865) ($826) $4,603 $10,023 $15,613
62 CASH REQUIRED $1,041 +$6,025 +$5,083 +$1,830
CASH REFUNDED 3,486 4,628 5,039 $826
Page 170 of 240

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
63 9. PHASE 1 & PHASE 2. WATER SUPPLY AND SEWERAGE SYSTEM
64 FEED & Detailed
design. Routing. $10 $30 $30
65 Water Supply
System. Phase 1. $180 $250 $200 $200 $200 $155
P&C Works
66 Sewerage and
Purification Plant. $30 $35 $35 $35 $35
Phase 1.
P&C Works
67 Water Supply
System. Phase 2. $170 $213 $200 $200 $200
P&C Works
Sewerage and
Purification Plant. $48 $50 $50 $50 $50
Phase 2.
P&C Works
68 Water Flow, Mm3a 21.88 43.77 43.77 87.54 87.54 87.54 87.54
Sanitation Service,
Mm3a 17.00 34.00 34.00 68.00 68.00 68.00 68.00
69 Operation Revenue $60 $119 $119 $239 $239 $239 $239
70 Operation cost $25 $50 $50 $87 $87 $87 $87
71 Net income $35 $69 $69 $152 $152 $152 $152
Refund from
72 Energy Complex $2,770
Operation
(Loss) ($190) ($775) ($1,284) ($1,721) ($2,251) ($2,795) ($2,783) $0 $152 $304
74 Interest 5% $10 $39 $64 $86 $113 $140 $139
75 Project Balance ($200) ($814) ($1,348) ($1,807) ($2,364) ($2,935) ($2,922) $0 $152 $304
76 Cash Required $200 +$614 +$534 +$459 +$557 +$571
Page 171 of 240

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
№ Description
56 8. PHASE 1 & PHASE 2. SUMMARIZED CASH BALANCE FOR ENTIRE PROJECT

57 INVESTMENT $1,181 $6,263 $5,012 $2,326 $563 $500
REVENUE $118 $1,793 $6,366 $7,961 $8,252 $8,423 $8,594 $8,764
58 NET INCOME $38 $789 $4,105 $4,976 $5,230 $5,581 $5,572 $5,742
59 CUMULATIVE
PROFIT (LOSS) ($1,181) ($7,503) ($12,852) ($15,032) ($12,242) ($8,378) ($3,567) $1,836 $7,408 $13,150
60 INTEREST 5% $59 $375 $643 $752 $612 $419 $178
61 ENERGY PROJECT
BALANCE ($1,240) ($7,878) ($13,495) ($15,784) ($12,854) ($8,797) ($3,745) $1,836 $7,408 $13,150
62 CASH REQUIRED $1,240 +$6,638 +$5,617 +$2,289
CASH REFUNDED 2,930 4,057 5,052 $3,745
Page 172 of 240

Fig. 15-1. Cash Balance for Power Plant 450 MW
Fig. 15-2. Cash Balance for Power Plant 852 MW
ENERGY COMPLEX AND WATER SUPPLY OF DODOMA METROPOLITAN CITY IN UNITED REPUBLIC OF TANZANIA. FUNDING
AND IMPLEMENTATION. PRE-FEASIBILITY STUDY
Page 173 of 240

Fig. 15-3. Cash Balance for Power Plant 1,704 MW
Fig. 15-4. Cash Balance for Gas Pipeline
Page 174 of 240

Fig.15-5. Cash Balance for HV Power Lines
Fig. 15-6. Cash Balance for Fuel Storage
Page 175 of 240

Fig. 15-7. Summarized Cash Balance for Energy Complex. Phase 1 & Phase 2
Fig. 15-8. Cash Balance for Water and Sanitation Project. Phase 1 & Phase 2
Page 176 of 240

Fig. 15-9. Summarized Cash Balance for Entire Project. Phase 1 & Phase 2
Page 177 of 240

Fig. 15-10. Comparative Chart of Cash Balance for Project Components.
Phase 1 & Phase 2.
Page 178 of 240

Fig. 15-11. Comparative Chart of Cash Balance for Energy Complex and Entire
Project. Phase 1 & Phase 2.
Page 179 of 240

15.3. Payback period
That criteria used for indicate the time needed for the Developer to recover its
investment and Loan return. The non-discounted pay-back Period is indicated in
Table 15-1 (within bold-lined frame).
15.4. Net Present Value and Internal Rate of Return
The Net Present Value is computed using the following equation:
NPV = ∑ { Rt / (1+i)t }
where:
Rt - the net cash flow i.e. cash inflow less cash outflow, at time t;
t - time horizon, year;
i - discount rate
The Internal Rate of Return computed as the rate of return, at which the Project
Component NPV equals zero.
Outflow amounts include capital expenditure and banker’s interest 5% (See Table
15-1)
Table 15-2. NPV Calculation for CCPP 450 MW. Phase 1.
Net Discounted
Year Outflows Inflows
Cash Flow Cash Flow
2018 $174 -$174 -$174
2019 $486 -$486 -$460
2020 $173 $38 -$135 -$121
2021 $31 $167 $136 $115
2022 $19 $283 $264 $211
2023 $5 $298 $293 $222
2024 $312 $312 $223
2025 $326 $326 $220
2026 $340 $340 $217
2027 $354 $354 $214
Totals: $888 $2,118 $1.230 $668
Page 180 of 240

Table 15-3. NPV Calculation for CCPP 852 MW. Phase 1.
Net Discounted
Cash Flow Cash Flow
2018 $189 -$189 -$189
2019 $576 -$576 -$545
2020 $343 -$343 -$307
2021 $164 $134 -$30 -$25
2022 $29 $560 $531 $425
2023 $1 $587 $586 $443
2024 $614 $614 $439
2025 $641 $641 $433
2026 $668 $668 $427
2027 $695 $695 $420
Totals: $1,302 $3,899 $2,597 $1,521
Table 15-4. NPV Calculation for CCPP 1,704 MW. Phase 2.

Net Discounted
Cash Flow Cash Flow
2019 $924 -$924 -$924
2020 $1,023 -$1,023 -$967
2021 $428 -$428 -$383
2022 $155 $234 $79 $67
2023 $61 $987 $926 $740
2024 $12 $1,041 $1,029 $778
2025 $1,095 $1,095 $783
2026 $1,149 $1,149 $777
2027 $1,202 $1,202 $769
Totals: $2,603 $5,708 $3,105 $1,639
Table 15-5. NPV Calculation for Gas Pipeline 1,574 km. Phase 1 & 2.
Net Discounted
Cash Flow Cash Flow
2018 $179 -$179 -$179
2019 $2,067 -$2,067 -$1,954
2020 $1,981 -$1,981 -$1,771
2021 $1,443 $105 -$1,338 -$1,131
2022 $204 $1,482 $1,278 $1,021
2023 $138 $1,520 $1,382 $1,044
2024 $67 $1,558 $1,491 $1,066
2025 $1,596 $1,596 $1,079
2026 $1,634 $1,634 $1,044
2027 $1,672 $1,672 $1,010
Totals: $6,079 $9,567 $3,488 $1,231
Page 181 of 240

Table 15-6. NPV Calculation for HV Transmission Lines 1,012 km. Phase 1 & 2.
Net Discounted
Cash Flow Cash Flow
2018 $305 -$305 -$305
2019 $1,601 -$1,601 -$1,514
2020 $1,450 -$1,450 -$1,297
2021 $471 $448 -$23 -$20
2022 $110 $1,179 $1,069 $855
2023 $55 $1,217 $1,162 $879
2024 $1,255 $1,255 $897
2025 $1,293 $1,293 $874
2026 $1,331 $1,331 $851
2027 $1,369 $1,369 $828
Totals: $3,992 $8,092 $4,100 $2,049
Table 15-7. NPV Calculation for Strategic Fuel Storage 500,000 m3. Phase 1.
Net Discounted
Cash Flow Cash Flow
2018 $189 -$189 -$189
2019 $370 -$370 -$350
2020 $151 -$151 -$135
2021 $25 $201 $176 $149
2022 $12 $298 $286 $229
2023 $298 $298 $225
2024 $298 $298 $213
2025 $298 $298 $202
2026 $298 $298 $191
2027 $298 $298 $180
Totals: $747 $1,989 $1,242 $714
Table 15-8. NPV Calculation for Water Supply and Sewerage. Phase 1 & 2.
Net Discounted
Cash Flow Cash Flow
2018 $200 -$200 -$200
2019 $614 -$614 -$581
2020 $534 -$534 -$478
2021 $494 $35 -$459 -$388
2022 $626 $69 -$557 -$445
2023 $640 $69 -$571 -$432
2024 $139 $152 $13 $9
2025 $2,922 $2,922 $1,976
2026 $152 $152 $97
2027 $152 $152 $92
Totals: $3,247 $3,551 $304 -$349
Page 182 of 240

Table 15-9. NPV Calculation for Energy Complex. Phase 1 & 2.
Net Discounted
Cash Flow Cash Flow
2018 $1,041 -$1,041 -$1,041
2019 $6,025 -$6,025 -$5,697
2020 $5,121 $38 -$5,083 -$4,545
2021 $2,584 $754 -$1,830 -$1,547
2022 $550 $4,036 $3,486 $2,787
2023 $279 $4,907 $4,628 $3,499
2024 $39 $5,078 $5,039 $3,602
2025 $5,429 $5,429 $3,670
2026 $5,420 $5,420 $3,465
2027 $5,590 $5,590 $3,379
Totals: $15,639 $31,252 $15,613 $7,574
Table 15-10. NPV Calculation for Entire Project. Phase 1 & 2.
Net Discounted
Cash Flow Cash Flow
2018 $1,240 -$1,240 -$1,240
2019 $6,638 -$6,638 -$6,277
2020 $5,655 $38 -$5,617 -$5,023
2021 $3,078 $789 -$2,289 -$1,936
2022 $1,175 $4,105 $2,930 $2,343
2023 $919 $4,976 $4,057 $3,068
2024 $178 $5,230 $5,052 $3,612
2025 $5,581 $5,581 $3,774
2026 $5,572 $5,572 $3,563
2027 $5,742 $5,742 $3,472
Totals: $18,883 $32,033 $13,150 $5,355
Page 183 of 240

Table 15-11. Evaluation of the Project
Total Total Total Net

Project Component Inflow Outflow Flow Discount Time NPV IRR Payback
Rate Horizon, Period
MUS$ MUS$ MUS$ % year MUS$ % year
Phase 1. Power Plant
450 MW 2,118 888 1,230 5.75 10 668 19.79 5.5
852 MW 3,899 1,302 2,597 5.75 10 1,522 25.72 5.5
1,704 MW 5,708 2,603 3,105 5.75 9 1,640 17.59 6.0
Phase 1 & 2. Gas
Pipeline 1,574 km 9,567 6,079 3,488 5.75 10 1,231 10.81 6.5
Phase 1 & 2. High
Voltage Transmission
Lines 1,012 km 8,092 3,992 4,100 5.75 10 2,049 16.88 5.5
Phase 1. Strategic Fuel
Storage 500,000 m3 1,989 747 1,242 5.75 10 714 22.77 4.5
Total for Energy
Complex 31,252 15,639 15,613 5.75 10 7,574 16.12 7.0
Phase 1 & 2. Water
Supply and Sanitation
System 3,551 3,247 304 5.75 10 (349) 2.27 6.5*
Summarized for Entire
Project 32,033 18,883 13,150 5.75 10 5,355 12.49 7.0
* Provided that the debt is covered by profit from the Energy Complex activity
15.5. Sensitivity Analysis
Sensitivity analysis is used to test the stability of project returns as different

assumptions shall be made about future planning scenarios. These scenarios will
be considered in Feasibility Study of the Project. This Study provide only base case,
however, the brief analysis below carried out for the most uncertain parameters
shows that, while the financial stability and high profitability energy generation
and natural gas operation improves the financial situation (return on investment
and solvency) of entire Project, the investment risks shall remain:
• increasing a HFO price by 84% (follow by World crude market prices) as

compared with forecasts can push the IRR of entire Project from 12.49% to
Page 184 of 240

12%, with the recovery period of entire Project thus lasting longer than 7
years;
• a delay in the construction works (if only half of the investments would be
made during 2nd and 3rd years) leading to delay commissioning date for 1.5
year, and thus to a rise construction cost of the project (due to increase
banker’s interest), would have only a minor effect on investment returns
(the IRR dropping to 11%), but the recovery period of entire Project would
cover 8.5 years;
• The mostly expected risk is a delay of payments for electricity, gas and water
by the customers. The payment delay for 11% of estimated cost will lead to
increase payback period for entire Project up to 8 years. In order to
minimize this risk, all offtake Agreements will be drafted under 100%
prepayment conditions ("cash & carry").
All finance and political risks are covered by MIGA Insurance.
Overall, the project is financially viable and estimates are robust enough for any
hazards which may arise during the project to be overcome.
XVI. BUSINESS STRUCTURE
16.1. Major Participants
The major players within the Project are the follows:
On behalf of the GOT:
• The Ministry of Finance and Economic Affairs as the Guarantor;

• Tanzania Electric Supply Company Limited (TANESCO) as the
Buyer of electricity generated;
• Tanzania Petroleum Development Corporation (TPDC),
shareholder of “Mnazi Bay Gas Developers”, as indirect Natural
Gas Seller at the Injection Station and Gas Buyer in Dodoma;
• Ministry of Water and Irrigation of Tanzania and its structures, as
Potable Water Buyer;
Page 185 of 240

• Dodoma Urban Water Supply & Sewage Authority (DUWASA), as
the Water Distribution and Sanitation Service Buyer;
• Other Government Structures and Relevant Authorities.
On behalf of Developer's Group (to be clarified):
• JVC PETROVILLAGE AG, as the Developer and Project Owner and

its Affiliates (SPV);
• Financial Institute, as the Lender;
• WORLEY PARSONS LLC, as the Project Consultant and EPCM;
• Supervising Company, as the Developer’s Representative (to be
determined);
• MAN Turbo & Diesel, Germany, as the EPC Contractor of Power
Plant 450 MW;
• SIEMENS AG, Germany, as the Contractor of Power Plant 852 MW
(Phase 1), Power Plant 1,704 MW (Phase 2) and as Subcontractor
of HVDC Converter Stations;
• Other Engineering and Construction Corporations;
• Subcontractors and Equipment suppliers.
16.2. Structure of the Project
This Project is a Public-Private Project. The GOT is a Customer of the Project.
During a Concession Period of 20 (Twenty) years the Developer (and its Affiliates)
is an Owner and Operator of the Project and Project Components. Once Concession
Period is expired, all assets shall be granted to the GOT.
The GOT and Developer has signed an Implementation Agreement, as an initial and
major document, which determines mutual benefits to be derived, rights and
obligations of the Parties, representations and warranties, conditions and
promises herein.
The GOT have created a Task Force Team, which is acting on behalf of GOT to
facilitate implementation of the Project and is liable to provide Developer all
necessary information, initial data and other support to provide a close contact to
the GOT’s structures and public relations.
Page 186 of 240

The Developer create a several Affiliates in Tanzania, means: Special Purpose
Vehicles (SPV) in form of Companies, Limited by Shares, acting under Tanzanian
Companies Act 2002. SPV is the Owner and Operator of each Project Component,
once it operational.
SPV is a Limited Company, acting in accordance with Memorandum and Article of

Association, having Shareholders: (i) Developer; (ii) Utility. The Developer is a major
Shareholder in SPV. The GOT is the minority in SPV and have 16% in Share Capital
of SPV (silent shares).
The GOT’s contribution into Share Capital is Tax exemption and other privileges as
the tangible assets.
Fig. 16-1. Scheme of the Project Ownership
GOVERNMENT DEVELOPER FINACIAL

OF TANZANIA OWNER OF THE PROJECT CORPORATION
WITHIN CONCESSION
CUSTOMER OF THE PERIOD OF 20 YERAS LENDER
PROJECT
SPV1 SPV2 SPV3 SPV4 SPV5
OWNER AND OPERATOR

OF GAS PIPELINES OWNER AND OWNER AND
OPERATOR OF OWNER AND OPERATOR OF WATER
OWNER AND OPERATOR
STRATEGIC FUEL OPERATOR OF WATER DISTRIBUTION AND
OF POWER PLANT
STORAGE 500,000 M3 SUPPLYING SYSTEM SEWERAGE
450MW, POWER PLANT
852 MW POWER PLANT
1,704 MW
AND HVDC/HVAC
TRANSMISSION LINES
Page 187 of 240

Fig. 16-2. Implementation Structure of the Project Component
LENDER
FINANCING AGREEMENT
GOT
CUSTOMER IMPLEMENTATION DEVELOPER EPCM
EPCM
AGREEMENT PETROVILLAGE AG CONTRACT
OF THE WORLEY
PROJECT OWNER OF THE
NON-MONETIZABLE PARSONS
WARRANTY PROJECT
UTILITY
STATE-OWNED SHAREHOLDERS
AGREEMENT 84%
COMPANY
SHAREHOLDERS
AGREEMENT 16%
OFFTAKE
PURCHASE
PURCHASER
SPV AGREEMENTS OF ELECTRICITY
OWNER & OPERATOR OF THE PROJECT NATURAL GAS,
COMPONENT WATER AND
SANITATION
SERVICE
EPC CONTRACT
EPC CONTRACTOR
SUBCONTRACTOR CONTRACTS
SUB-CONTRACTOR SUB-CONTRACTOR SUB-CONTRACTOR
Page 188 of 240

The purpose of SPV and names of Shareholders are the following:
SPV-1: Construction and operation of Dual-Fuel Power Plant 450 MW, Combined-
Cycle Power Plant 852 MW, Combined-Cycle Power Plant 1,704 MW and
HVDC/HVAC Transmission Lines.
Shareholders:
(i) The Developer: 84%

(ii) TANESCO (The Utility): 16%
SPV-1 is the Seller, and TANESCO (Utility) is the Buyer of 100% of electricity,
generated by Energy Complex. The SPV-1 and TANESCO will enter Power Purchase
Agreement (the Project Agreement). The Power Sale and Power Transmission
prices are referred in Project Agreement (PPA).

Fig. 16-2. Chart of Relationship Between Developer, SPV-1 and TANESCO

DEVELOPER
PETROVILLAGE AG
D
E M IA A N
GO W A M PL AN
V E R R ET TY
RE NC RS
R N A N IO N
EN L
A G IN A L D E
CO AR
T
M TY
W
F HO
EN
E
T 'S
R
AR
SH
SPV1 POWER PURCHASE

AGREEMENT
•POWER PLANT 450 MW
•POWER PLANT 852 MW
SHAREHOLDERS
AGREEMENT
TANESCO (UTILITY)
•POWER PLANT 1,704 MW
•HV TRANSMISSION LINES
Page 189 of 240

SPV-2: Construction and Operation of Natural Gas Pipelines.
Shareholders:

(ii) TPDC (The National Gas and Petroleum Company): 16%
The SPV-2 is the Buyer, and TPDC (Utility), as a Shareholder of “Mnazi Bay Gas
Developers”, is indirect Seller of Natural Gas. The SPV-2 and “Mnazi Bay Gas
Developers” will enter Gas Sale and Purchase Agreement (the Project Agreement).
The SPV-2 will transmit Gas via pipelines and sale it to:
• SPV-1 for power generation;
• TPDC under gas Sale and Purchase Agreement (the Project Agreement) for
urban consumption in Dodoma;
• third parties, under direct Sales Contracts between SPV-2 and consumers
(the Project Agreement).
Indicative gas purchase prices are referred in Implementation Agreement and
relevant Project Agreements.
Fig. 16-3. Chart of Relationship Between Developer, SPV2 and TPDC

DEVELOPER
PETROVILLAGE AG
D
G O A P LE N T
E M IA L A N
V E R R A T IO Y
RE NC RS
W
CO AR
RN N N
A G IN A L D E
T
EN
W
M RA
M TY
F O
EN
EH
T 'S
AR
SH
SPV2 GAS PURCHASE

AGREEMENT
•NATURAL GAS PIPELINES SHAREHOLDERS TPDC (UTILITY)
AGREEMENT
Page 190 of 240

SPV-3: Construction and Operation of Energy Complex. Division “D”. Strategic Fuel
Storage 500,000 m3 in Dodoma.
Shareholders:

(ii) TPDC (The National Gas and Petroleum Company): 16%
The SPV-3 have rights to purchase, import, storage and sale of Petroleum Products
to private and corporate inland or foreign customers. Such transactions are not a
subject of State tenders. SPV-3 shall secure an Import-export License and will be
qualified as Oil Marketing Company.
Fig. 16-4. Chart of Relationship Between Developer, SPV3 and TPDC

DEVELOPER
PETROVILLAGE AG
EN L N D
GO A OR AN
E M IA A
V E R R M A TY
RE N C ER S
W
PE W A
RN AN NC
RF RR
A G IN A L D
M TY E
F HO
EN
E
T 'S
AR
SH
SPV3 EXPORT-IMPORT LICENSE

AGREEMENT
STRATEGIC FUEL STORAGE SHAREHOLDERS

AGREEMENT
TPDC (UTILITY)
500,000 M3
Page 191 of 240

SPV-4: Construction and Operation of Potable Water Supply System from Lake
Victoria to Dodoma.
Shareholders:

(ii) The Ministry of Water and Irrigation: 16%
The SPV-4 is the Seller, and DUWASA (the Utility) is the Buyer 100% of Potable
Water, delivered to the customers. The Water tariffs are indicated in the Project
Agreement (Water Purchase Agreement).
Fig. 16-5. Chart of Relationship Between Developer, SPV4 and MOWI

DEVELOPER
PETROVILLAGE AG GO W A OR AN
EM ND
T
EN
V E R R M A TY
RE S A
PE W A
RN AN NC
AG ER
RF RR
M TY E
AL LD
EN
CI O
AN R EH
T 'S
F IN S H A
SPV4 WATER PURCHASE

MINISTRY OF WATER
AGREEMENT
POTABLE WATER SUPPLY
SYSTEM
SHAREHOLDERS
AGREEMENT
& IRRIGATION
Page 192 of 240

SPV-5: Construction and Operation of Water Distribution and Sanitation Systems
in Dodoma. Shareholders:

(ii) DUWASA (The Utility): 16%
The SPV-5 is the Seller, and DUWASA (the Utility) is the Buyer 100% of Water
Distribution System and Sanitation Service within Dodoma City. Water Distribution
Service tariffs and Sanitation Service tariffs are referred in relevant Project
Agreement (Water Distribution and Sanitation Service Agreement).
Fig. 16-6. Chart of Relationship Between Developer, SPV5 and DUWASA

DEVELOPER
PETROVILLAGE AG
W
AR
EM ND
GO NT ARR
T
EN
RA W
RE S A
VE Y P AN
AG ER
RN ER TY
AL D
M FO R
CI O L
EN M
AN R EH
T 'S A N
F IN S H A
CE
SPV5 SERVICE PURCHASE

WATER DISTRIBUTION AND
AGREEMENT DUWASA (UTILITY)
SHAREHOLDERS AGREEMENT
SEWERAGE SYSTEMS

Relations between Shareholders in the SPV will be governed by the terms of
Memorandum and Articles of Association, under Tanzanian Companies Act 2002.
The supreme governing body of SPV is the General Meeting of Shareholders.

Operational management is carried out by the Board of Directors, appointed by
Page 193 of 240

the General Meeting. The Board of Directors appoints the General Director of SPV
and its deputies.
The right to transfer shares of the SPV is restricted in that the no Shareholder
shall be entitled to transfer any share or shares in the capital of the SPV to any
person or corporation, who is not a shareholder of the SPV unless such
transaction has been approved by the General Meeting of SPV and expressed by
written instrument.

XVII. GOVERNMENT’S WARRANTY AND SUPPORT
17.1. Status of Strategic Investor
The current Tanzanian government is very concerned about ensuring the rights
for foreign investors. On October 3rd, 1997 the National Assembly has accepted
“The Tanzanian Investment Act 1997” which contained fundamental provisions,
designed to protect foreign investment.
Below are the most important extractions from Investment Protection Law,
concerned to Status of Strategic Investor:
20. (I) For the purposes of promoting identified strategic or major

investments, the Minister, may, by order published in the Gazette,
and after consultation with appropriate government authorities and
after consultation with the Minister of Finance, specify specific in
addition to the benefits provided under section 19 of this Act for any
period which the Board may specify.
21. Subject to this section, a business enterprise to which this Act applies
shall be guaranteed unconditional transferability through any
authorized dealer bank in freely convertible currency of:
(a) net profits or dividends attributable to the investment;
(b) payments in respect of loan servicing where a foreign loan has
been obtained;
Page 194 of 240

(c) royalties, fees and charges in respect of any technology transfer
agreement registered under this Act;
(d) the remittance of proceeds (net of all taxes and other
obligations)
in the event of sale or liquidation of the business enterprise or
any interest attributable to the investment;
(e) payments of emoluments and other benefits to foreign
personnel employed in Tanzania in connection with the business
enterprise.
22. (l) Subject to subsection (2) and (3) of this section-

(a) no business enterprise shall be nationalized or expropriated by
the Government, and
(b) no person who owns, whether wholly or in part, the capital of
any
business enterprise shall be compelled by law to cede his

interest in the capital to any other person.
(2) There shall not be any acquisition, whether wholly or in part of a
business enterprise to which this Act applies by the State unless the
acquisition is under the due process of law which makes provision
for:
(a) payment of fair, adequate and prompt compensation, and
(b) a right of access to the Court or a right to arbitration for the
determination of the investor's interest or right and the amount
of compensation to which he is entitled.
(3) Any compensation payable under this section shall be paid
promptly and authorization for its repatriation in convertible
currency, where applicable, shall be issued.
Follow by Implementation Agreement, the GOT has declare and guarantee the
Developer:
• Benefits for Strategic Investor;

• Investment guarantees, capital repatriation, profits and dividends
transactions;
• Guarantee against expropriation and nationalization;
• Immigration quota.
Page 195 of 240

17.2. Project Contracts, Prices and Tariffs
The GOT accepted, agreed and duly executed the terms and conditions of
Implementation Agreement, including electricity, gas, water, sanitation and other
service tariffs.
The GOT shall cause the relevant entity (Utility) to accept, agree and enter the
Project Agreements, such as:
• Power Purchase Agreement;

• Transmission and Interconnection Agreement;
• Gas Sales and Purchase Agreement;
• Fuel Supply and Storage Service Agreement;
• Water Purchase Agreement;
• Sewage Service Agreement;
• Land Transfer (Rent) Agreement.
and such relevant Utility is accepted, agreed and entered relevant Project
Agreement.
17.3. Guarantee for Utility’s Obligations
The GOT will provide Developer the State Warranty, which is to guarantee the
performance of Utility’s obligations under the Project Agreements, such as: Power
Purchase Agreement, Gas Purchase Agreement, Water Purchase Agreement,
Sanitation Service Agreement and shall, at the request of the Developer, in a timely
manner take any necessary measures to ensure Utility strictly complies with its
obligations under the Project Agreements.
It is agreed also, that, delivery of electricity gas, water and sewage services will be
under 100% prepayment conditions.
17.4. Government’s Approvals
The GOT agree to provide Developer all necessary Approvals, Licenses, Permits and
other Commitments for successful performance of the Project.
Page 196 of 240

Without contravening the existing laws, no Relevant Authority shall intervene, at
any time during the term nor shall such Relevant Authority attach any additional
terms or conditions to the GOT Approvals which materially and adversely affects
the Developer or the Project.
17.5. Immigration Control and Work Permits.
The GOT will ensure that the foreign employees and consultants of the Developer
and its subsidiaries are provided with the required immigration and temporary
residential permits as well as their extensions without any charges (including entry
visas).
Provided the Developer and Contractors comply with all applicable Laws of
Tanzania, the GOT will expeditiously grant applications of the Developer and
Contractors for work permits, employment passes periodical registration of
engineers with different GOT’s registration Boards and other permits, as necessary
for individuals involved in the Project.
17.6. Tax Exemptions
The GOT is to declare that, throughout the construction period as well as during
10 (ten) years of operation the Project Component, the Developer shall be
exempted from all applicable taxes, property taxes, corporate taxes, excise duty,
stamp duties, special taxes, levies and any other charges levied by the Law of
Tanzania under Strategic Investor’s Status.
The GOT hereby assures the Developer that the foreign workers of the Developer
and its contractors and other foreign persons providing services to the Developer
in relation to the implementation of the Project, shall not be subjected to payment
of income tax or other type taxes in Tanzania.
17.7. Free Transfer and Repatriation of Funds.
Without prejudice to Tanzanian Law, the GOT will permit the Developer and /or its
subsidiaries the unfettered right to transfer from the accounts in Tanzania to any
Page 197 of 240

accounts outside of Tanzania at any time and in such hard currency(ies) as it may
decide (including but not limited to transfer towards payments to third parties,
payments to head office, payment to equipped suppliers, distribution of dividends,
payments for consultants, payment towards any type of services or repayment of
any loans), any part or all of the monies that it holds in Tanzania including all
revenue that is obtained from the implementation of the constituent projects and
undertaking any activity related to or required for the implementation of the
Project pursuant to Implementation Agreement or any other amounts payable
under this Agreement.
XVIII. FUNDING OF THE PROJECT
18.1. Business Mode
Given the fact that entire Project consists of a number of Project Components,
each of which is a separate and costly enterprise, has a different technical
approaches and economic indicators, all of Project Components are technically and
economically interrelated, so the successful operation and profitability of one
project affects to the profitability of others.
Proposed business-mode of each Project Component (as well as entire Project) will
be carried out on the Built-Own-Operate-Transfer (B-O-O-T) basis within
Concession Period of 20 years, in which the GOT has a 16% of stake.
Shareholders will have no dividends in this Project until the Loan is fully repaid.
18.2. General Loan Terms Requested
(a) Requested amount of financing: Itemized and summarized amounts of

investment shown in Table 18-1
below:
Page 198 of 240

Table 18-1. Funds, Requested for Implementation Project Components*
Name of the Project Component Loan required, US$

For Energy Complex, Phase 1 6,866,000,000
For Energy Complex, Phase 1 and Phase 2 13,979,000,000
For Water and Sewerage, Phase 1 1,555,000,000
For Energy Complex, Water and Sewerage, Phase 1 8,421,000,000
For Entire Project, Phase 1 and Phase 2 15,784,000,000
*Requested amounts of funds are included:

• Construction cost;
• Contingency 20%;
• Developer’s Cost 10%;
• Financial Service Fee 2%;
• Banker’s interest 5% ;
• Income from Project Component(s) once it operational.
(b) Type of financing requested: A Line of Credit
(c) Fixed Interest Rate: 5% (Five percent) per annum over the
full term of funds lease. Interest is
paid only those funds drawn from the
Line of Credit
(d) Financing Term: 5 (Five) years with a 2 (Two) years

rollover provision
(e) Amortization Period: 20 (Twenty) years. Calculation is

based on those funds drawn on the
Line of Credit
(f) Payment Conditions: Interest only is payable monthly for and

during the construction period; 6
months after construction is complete,
payments are to be principal and
interest payable monthly for the balance
Page 199 of 240

of the Loan term. There is no penalty
should early retirement of the principal
Loan occur after the first 24 months.
18.3. Collateral, Warranties and Credit Insurance
All investments, Loans and Mortgages shall be collateralized and protected

by the following:
(a) Equipment, materials, fuel in pipelines and tanks and all facilities
being construction for the term of financing, when all financing
debt is paid off;
(b) Take-off Agreements, secured by AA insurance cover to

Underwriter the agreement against Default, Political Risks and
Contract Frustration covered by MIGA Insurance Agency, which is to
guarantee monthly payments for electricity generated, water
delivered and service provided, as well as mortgage repayment;
(c) Material Assets, created during construction process;
(d) State Payment Warranty in form as referred in Project Agreement;
(e) EPC Performance Warranty (or Completion Bonds), issued by EPC’s

served Bank under Construction Agreement(s);
(f) 100% monthly pre-payments for electricity generated and service

provided.
XIX. PROJECT IMPLEMENTATION
19.1. Timetable of Implementation
The Table 19-1 below shows tentative Implementation Schedule for the Project,
based on scope of works for each Project Component.
Page 200 of 240

Table 19-1. Schedule of Project Implementation
2018 2019 2020 2021 2022 2023 2024 2025 2026
PROJECT COMPONENT I II I II I II I II I II I II I II I II I II
1. Startup
Signing Project Agreements. Funding
pre-approval. Performance of
Feasibility Study and FEED.
Approvals, Licenses, Permits, Land
allocation. Financial Closing.
Preparation Works: Mobilization,
temporary facilities, soil investigation,
basic survey, executive design
2. PHASE 1. Division “A”. Dual Fuel Power Plant 450 MW.
EPC (MAN, Germany) Contract.
Equipment & Materials Procurement
Construction, Testing, and
Commissioning of Block 1 225 MW
3. PHASE 1. Division “A”. Combined Cycle Gas-Fired Power Plant 852 MW.
EPC Contract. Detailed Design.
Equipment & Materials Procurement.
4. PHASE 1. Division “B”. Gas Pipeline 470 km Kinyerezi - Dodoma
FEED and Detailed Design. Geology and
Topography Works. Equipment and
Materials Procurement.
Trenching and Pipe Laydown.
Construction of Compressor Stations,
Connection to Main Line. Operation &
Monitoring System Installation. Testing
and Commissioning
5. PHASE 1. Division “C”. HVDC Transmission Line 500 kV 490 km Dodoma-Shinyanga
Routing. FEED and Detailed Design.
Equipment and Materials Procurement
HVDC Overhead Line Construction.
Construction of Converter Stations in
Dodoma and Shinyanga
Connection, Testing & Commissioning
6. PHASE 1. Division “D”. Strategic Fuel Storage 500,000 m3
FEED and Detailed Design.
Construction of Tank Farm 500,000 m3,
Loading/Unloading Facilities,
Purification Plant, Approached Roads
Testing and Commissioning
7. PHASE 1. Potable Water Supply and Sanitation System
FEED & Detailed Design of Water
Intake, Pre-treatment & Purification
Plant in Dodoma. Water Pipeline
Routing and Design. Equipment and
Materials Procurement
Construction of Water Intake & Pre-
treatment Plant in Lamadia.
Trenching and Pipe Laydown 1x 48”
pipeline 770 km. Construction of 16
Pump Stations
Construction of Water Purification
Plant in Dodoma, Water Storage 1x
500,000 m3, 2nd Elevation Pump
Station
Construction of Water Distribution
Pipelines and Water Towers within
Government City
Testing and Commissioning of Water
Supply System
PROJECT COMPONENT 2018 2019 2020 2021 2022 2023 2024 2025 202
Page 201 of 240

2018 2019 2020 2021 2022 2023 2024 2025 202
FEED & Detailed Design of Sewage
Treatment Plant and Sewerage for
Ntyuka Ward. Equipment &Materials
Procurement
Construction and Commissioning of
Sewage Treatment Plant and
Sewerage.
Testing & Commissioning
8. PHASE 2. Division “A”. Combined Cycle Gas-Fired Power Plant 1,704 MW.
EPC Contract. Detailed Design.
Equipment & Materials Procurement.
Commissioning of Blocks 1&2 852 MW
Commissioning of Blocks 3&4 852 MW
9. PHASE 2. Division “B”. Gas Pipeline 538 km Dodoma-Shinyanga
and Commissioning
10. PHASE 2. Division “B”. Gas Pipeline 566 km Shinyanga-Uganda Border

and Commissioning
11. PHASE 2. Division “C”. HVDC Transmission Line 500 kV 310 km Shinyanga-Biharamulo
HVDC Overhead Line Construction.
Construction of Converter Station in
Biharamulo.
12. PHASE 2. Division “C”. HVAC Transmission Line 400 kV 212 km Biharamulo-Uganda Border
HVAC Overhead Line Construction.
13. PHASE 2. Potable Water Supply and Sanitation System
Extension of the Project. Equipment
and Materials Procurement
Extension of Water Intake & Pre-
treatment Plant in Lamadia.
Trenching and Pipe Laydown 1x 48”
pipeline 770 km. Extension of 16 Pump
Stations
Extension of Water Purification Plant in
Dodoma, Water Storage 1x 500,000
m3. Extension of 2nd Elevation Pump
Station
Construction of Water Distribution
Pipelines and Water Towers within
Buigiri & Chipogoro Wards
Testing and Commissioning of Water
Supply System
FEED & Detailed Design of Sewage
Treatment Plant and Sewerage for
Buigiri & Chipogoro Wards. Equipment
& Materials Procurement
Page 202 of 240

2018 2019 2020 2021 2022 2023 2024 2025 202
Construction and Commissioning of
Sewage Treatment Plant & Sewerage.
Testing & Commissioning
The most important step is establishment of adequate financial resources,

obtaining relevant permits, licenses, signing all necessary commitments with the
GOT and get a free access to the construction sites.
19.2. Organization of Construction Works
In order to reach the best results, the Developer has invited a Worldwide known
Engineering, Procurement and Construction Management (EPCM) Company, who
will provide Consulting and management Service of entire Project and Project
Components.
For the Quality Control and Project Supervising the Developer will appoint the
Supervising Company, which will be as the Developer's Representative.
Based on Implementation Agreement and proposed structure of the Project,

Developers Affiliates (SPVs) will enter Construction Contracts with EPC Company
for each Project Component (see Fig.19-1 below)
The basis for drafting the working documentation, related to execution of this
Project, is the model of EPC turnkey Contracts, issued by FIDIC ("Silver Book"),
which providing the rights, obligations and responsibilities for the parties
concerned in the Contract execution. This model provides high-quality provisions
and logical clause sequencing in accordance with the best Worldwide contractual
practice.
The most essential conditions of construction contracts are the following:
• The EPC Contracts shall be implemented according to “Developer’s

Requirements” means the document entitled Developer’s requirements, as
included in the EPC Contract, and any additions and modifications to such
document in accordance with the Contract. Such document specifies the
purpose, scope, and/or design and/or other technical criteria for the Works.
Page 203 of 240

Fig. 19-1. Contractual Diagram.

• The EPC Contracts shall be implemented according to "Particular
Conditions", that means, the special conditions which are peculiar to
Agreement, such as: Completion Bonds (Performance Warranty),
conditions, payment conditions, target price variation clauses, penalties,
etc;
• The design, the Contractor’s documents, the execution and the completed
works shall comply with the American and/or European technical standards,
building, construction and environmental Laws, Laws applicable to the
product being produced from the construction works, and other standards
specified in the Developer’s Requirements, applicable to the construction
works, or defined by the applicable Laws.
• The Developer shall make an advance payment, as an interest-free loan for

mobilization and design, when the Contractor submits Banker’s guarantee
in accordance with the Particular Conditions;
Page 204 of 240

• The Developer shall pay the first instalment after receiving (i) a Statement
of Works, (ii) the Performance Warranty in accordance with Particular
Conditions, and (iii) a guarantee in amounts and currencies equal to the
advance payment. This guarantee shall be issued by an entity and from
within a country (or other jurisdiction) approved by the Developer and shall
be in the form annexed to the Particular Conditions or in another form
approved by the Developer. Unless and until the Developer receives this
guarantee, the advance payment shall not apply.
• The Contractor shall not subcontract the whole of the Works. The
Contractor shall be responsible for the acts or defaults of any
Subcontractor, his agents or employees, as if they were the acts or defaults
of the Contractor.
• The Contractor shall take all reasonable steps to protect the environment
(both on and off the Site) and to limit damage and nuisance to people and
property resulting from pollution, noise and other results of his operations.
• The Contractor shall ensure that emissions, surface discharges and effluent
from the Contractor’s activities shall not exceed the values indicated in the
Developer’s Requirements, and shall not exceed the values prescribed by
applicable Laws
Page 205 of 240

XX. PROJECT MANAGEMENT

20.1. Developer’s Team
The Developer has created an experienced management for initiating, planning,

executing, controlling, and commissioning the work to achieve specific Project
goals and meet specific success criteria.
Here are the key personnel of Developer's Initiate Team (the Management of
Affiliate Companies in Tanzania not included):
Leonid Khalfine
Chairman, General Manager of the Project. Citizen of Canada.

Engineer. Civil Construction and Energy. Has 43 years of experience in
the design, construction and management of industrial and civil
Page 206 of 240

construction projects. He has also a 20-year experience in the energy
industry and mining in Canada, Far North of Russia and Mongolia.
Leonid has a great 18-year business practice in Equatorial, East-African
and Sub-Sahara countries, such as DRC, Namibia, Kenya and Tanzania.
Kusanya Frederick Shindika,
Business Development Director in United Republic of

Tanzania. Citizen of Tanzania. Frederick has more than 20-year
experience in Project Financing and Project Management in
Switzerland and Tanzania.
Effective communicator and negotiator with ability to interact
successfully with government officials, employees and customers.
Frederick has excellent contacts with federal and regional
Governments in Tanzania.
Furaha Frederick Kanga
Project Coordinator. Masters of Business Administration.

Frederick is a dedicated Human Resources professional with
twenty-five years working experience in Tanzania having worked
in Manufacturing, beverage, airline, telecommunications and
banking industries.
Page 207 of 240

Frederick has a strong capability in establishing systems, equipped with

current knowledge of merging Human Resources element to the
business requirements. He is a conversant with the Tanzanian Labor
Laws, has strong negotiations skills and can easily establish a strong
team that can be productive in a specific business requirements.
Don Pollock
is a leading international urban and regional planner with

more than thirty-five years local and international experience in the
private and public sectors skilled in strategic and statutory planning.
His urban planning experience has included management of multi-
disciplinary teams on large-scale international urban development
projects and studies.
Don’s particular areas of expertise include strategic planning, master

planning, urban governance and project management. He has
extensive experience in managing strategic planning and urban
design studies and has been instrumental in obtaining planning and
development approvals for numerous complex large-scale
international projects.
Page 208 of 240

Lynn Rybow
Forty-three years of experience as Regional Director of

Power, Business Development Director, Business Development Director, Business
Unit Director, Project Financial Advisor, Project Manager and Senior Engineer.
Experience evolved through management and participation in numerous
domestic/international projects in USA and 28 countries in Latin America, Eurasia
and Africa. Duties include overall power business and strategy development,
building strong relationship with key internal and external stakeholders,
developing prospects, global proposals and projects for all manner of power
opportunities, as well as facilitating the development of international project
delivery team structures.
Duncan Foster
Duncan is an experienced master planner who has worked

on projects around the world. His background as a land use planner
and his post graduate qualifications in transportation allow him to
bring a uniquely balanced approach to master planning projects;
Page 209 of 240

from site selection to the allocation of land for various uses including
transportation and infrastructure corridors, plant sites and
accommodation villages. Duncan has experience in a range of master
planning projects including hydrocarbons, minerals and metals and
downstream processing. He has played a leading role in the
successful delivery of numerous master plans for industrial cities,
precincts and transport infrastructure. Duncan is an enthusiastic
team member and leader. He has lectured at Curtin University as
part of the Urban and Regional Planning Degree and has presented
papers on transport and master planning at various forums.
Troy V. Mefferd
SVP or EVP operations. Program or Project director for

Greenfield Mega-Projects development, engineering and
construction. Expert with the Project Shaping process for huge and
complex projects, to include the highly politically challenged projects
and those with unusually large stakeholder basis.
Troy is Project Executive professional. With over 40 year experience.

During his career to date, he has completed in total approximately
US$40 billion as either the project superintendent, project manager or
EPC program manager.
Page 210 of 240

Charles E. Humphry
Executive with more than 18 years of experience in the US

energy sector. Experienced Project manager, directing complex
renewable energy projects from concept to full operational status;
Proven track record structuring and management of engineering
services for renewable energy projects to reach optimal performance
and achieve financial and operational performance goals;
Successful International Business Developer with energy projects
executed in USA, Europe and Canada. Brought together legal, financial
and technical solutions that built partner consensus and closed deal;
Experienced Proposal and Contract Manager and directed acquisition
of a GSA contact to provide services for: Energy Management Planning
and Strategies, Energy Program Support, Innovations in Renewable
Energy, and to be a Energy Consulting Services Contractor under the
GSA contract.
Andreas Krieger heads an accounting of Petrovillage AG and has a 24-year

experience in Chartered Accounting, Corporative Bookkeeping,
Financial Planning and Financial Auditing in Switzerland, Germany and
Austria.
20.2. Project Management and Consulting
As a Project Manager, the Developer have proposed the American company

Worley Parsons LLC (WP), with which the Developer had a very positive experience
in Mongolia.
Page 211 of 240

The Worley Parsons has a great experience as EPCM, PCM and Project Consultant
and proposed acceptable terms for the Project performance.
The major role of WP is:
• Conceptual Design and Master Plan Performance;

• Business-model Development;
• Feasibility Study Execution;
• Contract Planning;
• Project Execution Planning;
• FEED and Detailed Engineering Design;
• Engineering, Procurement and Construction Integrated Management.
The WP Proposal is attached.
20.3. Management of Developer’s Affiliates (SPV)
During the construction and operation period the Management of Developer's

Affiliates (SPV) will consist in foreign and local specialists. The structure of SPV
organization will envisage a full financial and technical control on SPV
Management.
For security reasons, the basic cash flow within construction period will pass thru
Developer's Banks (e.g. Credit Suisse, Zurich), located outside of Country, and will
be operated by Developer's top managers only.
XXI. EDUCATION AND TRAINING LOCAL SPECIALISTS
There is a more than 25 Universities and 40 Colleges provide professional skills and
knowledges for the local students in Tanzania. The most ranked of them are:
• University of Dar-es-Salaam
• University of Dodoma
• Nelson Mandela African Institute of Science and Technology
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which prepare specialists at a more or less sufficient level of knowledge.
Nevertheless, a weakly developed industrialization cannot provide employment

for specialists and their career growth.
During the Project execution, the Developer undertakes to create the maximum
number of jobs as priority for the local population within part of their professional
competence. It is agreed, that the Developer is obliged, within the budget of the
Project, to educate and train professionals from the local population, and to send
the most capable young workers to study in foreign training centers.
XXII. ENVIRONMENT PROTECTION
22.1. Environment Protection Law in Tanzania
Tanzanian Government is currently one of the most advanced body in Africa, which
is anxious to the rational use of natural resources and care about environmental
protection.
Among the several laws aimed at preserving water resources, flora and fauna, any
hunting for wild animals and birds is completely banned in the country.
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The Environmental Management Act of Tanzania was passed by the National

Assembly in 2004.
The Act repealed and replaced the National Environment Management Council
Act, 1983.
This Act is a framework Act (a comprehensive umbrella) in that it is the legislation
governing environmental aspects in Tanzania. The Act includes provisions for:
(a) legal and institutional framework for sustainable management of

environment;
(b) an outline principles for management;
(c) impact and risk assessments;
(d) prevention and control of pollution;
(e) waste management;
(f) environmental quality standards;
(g) public participation;
(h) compliance and enforcement;
(i) and the basis for implementation of international instruments on
environment.
This Study provide the basic advances of proposed Project, which meet local
environment protection Law.
22.2. Impact due to Projects Location
Proposed ROW and Construction sites are located in vacant lands, unsuitable for
agriculture. The location of construction areas in relation to the country’s forests
and protected areas illustrates that no protected habitats or reserve forests occur
within 50 km of construction sites. It is, therefore, concluded that these areas are
outside of the Project’s.
The following measures for Project mitigation on environmental impact will be

detailed described in frame of Feasibility Study:
• Protection of Water Resources

• Protection of Land Resources and Erosion Control
• Protection of Air Resources
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• Protection of Fish and Wildlife Resources
• Storm water Management
• Spill Control
• Non-Hazardous Waste Disposal
• Noise Control
• Contaminant Prevention
• Environmental Risk Management
Obviously, that the major environmental components that will be adversely

affected by the project activities are air quality and noise pollution.
However, socio-economic environment is considered to be affected positively of
the project activities would create job opportunity for the local people and the
area will be more developed and commercial activities will be increased in the
locality. All these impacts will contribute to improve the quality of life of the local
community.
The general mitigation measures of the adversely affected parameters are

discussed in the subsequent sections.
22.3. Combined Cycle Generation.
Combined-cycle generation units generate electricity and capture normally wasted

heat energy, using it to generate more electricity. Like cogeneration applications,
this increases energy efficiency, uses less fuel, and thus produces fewer emissions.
Natural gas-fired combined-cycle generation units can be up to 63% energy
efficient, whereas coal and oil generation units are typically only 30% to 35%
efficient.
In order to reduce the emission of air pollutants and prevent the fuel gas emitted
by the Power Plants from polluting the environment, the following measures will
be taken in design phase:
(a) Emit the fuel gas from boiler through higher chimney to increase the ability of
gas to dilute and diffuse;
(b) Install of Post-combustion carbon capture means capturing CO2 from the flue
gas of power plants in order to significantly reduce the power plants’ CO2
emissions.
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SIEMENS has developed a proprietary absorption process for post-combustion
carbon dioxide capture (called Siemens Post-Cap-TM) which is applicable to coal-
fired power stations and natural gas-fired power plants.
(c) Selective Catalytic Reduction (SCR) of NOx:

Catalytic after-treatment of the exhaust breaks down harmful NOX into harmless
nitrogen and water. A reducing agent is injected into the exhaust flow, upstream
from a catalytic converter. Together with the catalyst, this agent causes the
breakdown of the NOX. With SCR, the engine can operate at partial and full load
with maximum efficiency. With this technology a NOx reduction ratio of up to 97%
is achievable.
(d) CO, HC and CH2O Oxidation Catalysts:

Based on the individual requirements, equipment producers will select the best
oxidation catalyst for your application according to function and price from a series
of different coated catalysts. A monitoring system will indicate when the catalyst
has to be cleaned or replaced.
Oxidation catalysts can be easily combined with SCR systems, if necessary. The
main reactions in oxidation catalyst systems are:
Carbon Monoxide: CO + 1⁄2 O2 → CO2

Hydrocarbons: CmHn + (m + n/4) O2 → m CO2 + n/2 H2O
Aldehydes, Ketones, etc.: CmHnO + (m + n/4 - 0.5) O2 → m CO2 + n/2 H2O
Hydrogen: H2 + 1⁄2 O2 → H2O
(e) Desulfurization (for diesel-fired generation):

SOx emissions are caused by the sulfur content in the fuel and cannot be influenced
by the engine. Any sulfur burned in the combustion process will be emitted as SOx.
Low-sulfur fuel is usually expensive and not always available, and removing sulfur
from the fuel can be costly. The sulfur has to be removed from the exhaust using
the appropriate technique to adhere different emission limits.
Two established methods are available:
• Conditioned dry scrubbing with hydrated lime powder;

• Dry scrubbing with sodium bicarbonate powder.
The choice of a suitable desulfurization method depends mainly on the water and
absorbent availability.
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(f) Particle Filtration and Emission Monitoring:
Due to the ash content and combustion characteristics of the fuel especially in
heavy fuel oil applications, particle emissions will occur.
In order to reduce these already low particle emissions further, two different
systems are available:
(g) Electrostatic precipitator (ESP):

The best solution for high exhaust temperature applications is electofiltration, the
electrostatic attraction of ionized particles.
(h) Bag filtration:
Where low exhaust temperatures are given, for example in CHP applications, bag
filters are applicable. If necessary, these can be easily combined with a DeSOx
system.
(i) Noise reduction

The specification of the requirements of acoustically relevant equipment follows
of the acoustical design of a power plant in its particular environment.
The reduction of the sound emissions is achieved by means of appropriate sound
attenuation (silencers) and damping (of buildings and equipment) as well as by use
of low-emission equipment (radiator coolers, transformers, compressors, etc.).
Fig. 22-1. Acoustic Intensity Around Power Plant
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Fig. 20-2. Silencers in Power Plant 450 MW.
To fulfill local regulations regarding proof of exhaust and acoustic emissions and
to ensure ideal operation of exhaust treatment units, proposed EPC Contractors:
SIEMENS and MAN Diesel & Turbo will choose the best solution in terms of price
and practicality to fulfill environment protection requirements. The function and
reliability of these systems has been proven in a number of installations.
22.4. Natural Gas Pipeline
Though natural gas pipelines might not get as much national attention as oil
pipelines, they still pose major concerns for residents. Statistics said, that natural
gas pipelines have many incidents that result in death or hospitalization than other
kinds of pipelines in case it is ruptured, the pipelines can explode, causing fires
and, in some cases, death. And because these pipelines often are slated to go
through rural parts of the country, residents also worry that the pipeline and noisy
compressor stations that can go along with it will disrupt their way of life and
disturb the environment.
Gas compressor stations will be located away from populated areas to avoid
possible contamination of the air with exhaust gases, as well as to prevent acoustic
influence. Engines and compressors will be equipped with special silencers and
protective screens. Compressor stations will, if possible, be surrounded by planting
trees to reduce noise.
In order to minimize ROW disturbance, pipelines would be place down into narrow
trench, excavated by the trencher.
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The pipeline right-of-way, including any required temporary workspace, will
normally be 25 m wide with possible increases up to 50 m wide at side bends and
other obstacles. Permanent and temporary access trails will be one vehicle width
for two-way traffic, with passing permitted at designated locations only.
Pigging facilities typically require a 5 m x 8 m area. The pig senders and receivers
will be located at the ends of the loop line(s).
The Developer will plan access trails on a holistic basis. The Project will utilize, as
much as possible, the existing routes and plan to reduce the need for new access
trails. The intent will be to reduce overall disturbance and Project footprint, while
protecting vegetation and soils from over use damage. Access trails will avoid high,
exposed ridges and hills wherever possible. Where unavoidable, trails will follow a
gentle sinuous route that reduces the impact of wind erosion without impeding
vehicles passage.
Access trails will be determined by considering the size of the vehicles and
equipment that will use it, the soil and topographic conditions, and any sensitive
environmental features. Two track gravel access trails may be established in high
volume traffic areas where there is the potential for or existing evidence of
excessive erosion or braiding.
Where possible, pipeline routes will be located to avoid traversing steep slopes
and identified environmental resources, and to follow well-drained saddle
topography between hills. In all circumstances, pipeline routes will be selected to
obtain the shortest acceptable distance.
Pipelines will be routed to avoid ephemeral drainage courses, where possible.
Where ephemeral watercourse crossings cannot be avoided, they will be crossed
at right angles and appropriate erosion control measures will be implemented.
The Project may avoid sandy soil with steep gradient slopes with erosion potential
(> 15%). Where slopes cannot be avoided, site-specific mitigation and reclamation
plans will be created. The site-specific plans will be created to meet the Soil Loss
Standard. Where it is necessary for access trails to traverse steep slopes, the
Construction Coordinator will be consulted during route selection.
Wildlife photo reference sheets will be provided to all Project personnel to aid in
identification and reporting of Listed Species.
All sightings of Listed Species during construction will be reported to the
Environmental Inspectors who will advise the Activity Coordinators and
Environmental Coordinator, who will then advise Regulatory Agencies. Specific
mitigation measures will be implemented where necessary and the sighting will be
recorded and located on the alignment sheets.
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Unexpected wildlife issues that arise during construction will be resolved in
consultation with the Activity Coordinators, Environmental Coordinator, the
Environmental Inspectors, qualified environmental specialists and the Regulatory
Agencies, if necessary.
Wildlife and livestock will be allowed to passively disperse from access trails and
rights-of-way. Harassment of wildlife or livestock will be prohibited.
22.5. High-Voltage Transmission Lines
The impact from the construction of a transmission line on an area depends on the
topography, land cover, and existing land uses. In forested areas the entire right-
of-way (ROW) width is cleared and maintained free of tall-growing trees for the life
of the transmission line. The result is a permanent change to the ROW land cover.
In agricultural areas, heavy construction vehicles traverse the ROW and
temporarily suspend the use of the land for crop production. After construction
ends and the fields are properly restored however, the land beneath the line can
be cropped or pastured. For this reason, the area permanently affected by the line
is usually much smaller than the area temporarily affected during construction.
Where transmission lines are routed through areas that are valued for their scenic
qualities, the visual impacts of the line (the area affected) may extend well beyond
the ROW.
(a) Potential Aesthetic Impacts:

The overall aesthetic effect of a transmission line is likely to be negative to most
people, especially where proposed lines would cross natural landscapes and
private properties. New tall steel or wide H-frame structures may seem out of
proportion and not compatible with agricultural landscapes or residential
neighborhoods.
Some people however, do not notice transmission lines or do not find them
objectionable from an aesthetic perspective. To some, the lines or other utilities
may be viewed as part of the infrastructure necessary to sustain everyday lives and
activities.
For mitigation of Aesthetic Impacts electric transmission lines may be routed to

avoid areas considered scenic. Routes will be chosen that pass through
commercial/industrial areas or along land use boundaries.
The form, color, or texture of a line can be modified to somewhat minimize
aesthetic impacts. There are some choices available in transmission structure color
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and/or construction material. Structures constructed of wood or of rust brown
oxidized steel may blend better with wooded landscapes. Stronger conductors can
minimize line sag and provide a sleeker profile.
(b) Potential Impacts to Agricultural Lands:

Transmission lines can affect farm operations and increase costs for the farm
operator. Potential impacts depend on the transmission line design and the type
of farming.
The placement of transmission structures can cause the following agricultural
impacts:
• Create problems for turning field machinery and maintaining efficient
fieldwork patterns;
• Increase soil erosion by requiring the removal of windbreaks that were
planted along field edges or between fields;
• Create opportunities for weed and other pest encroachment;
• Compact soils and damage drain tiles;
• Result in safety hazards due to pole and guy wire placement;
• Hinder or prevent aerial spraying or seeding activities by planes or
helicopters.
For mitigation of Agricultural Impacts the Developer will work with agricultural
landowners as early in the design process to help identify potential impacts, well
in advance of construction. The Developer, working with landowners can:
• Avoid or minimize construction through sensitive farmland;
• Identify, address, and document concerns before construction begins;
• Find resolutions for anticipated impacts (e.g., payments to temporarily
suspend farming activities or the installation of a temporary fence).
Problems with pole placement can be mitigated to some extent if the utility works
with farmers to determine optimal pole locations. The following approaches might
be useful:
• Using single-pole structures instead of H-frame or other multiple-pole
structures so that there is less interference with farm machinery, less land
impacted, and weed encroachment issues;
• Locating the line along fence lines, field lines, or adjacent to roads so as to
minimize field impacts;
• Using transmission structures with longer spans to clear fields;
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• Orienting the structures with the plowing pattern to make farm equipment
less difficult to use;
• Minimizing the use of guy wires but where necessary, keeping the guy wires
out of crop and hay lands and placing highly visible shield guards on the guy
wires;
• Minimizing pole heights and installing markers on the shield wires above
the conductors in areas where aerial spraying and seeding are common;
• Locating new transmission lines along existing transmission line corridors;
• Using special transmission designs to span existing irrigation systems or if
necessary, reconfiguring the irrigation system at the utilities expense.
To minimize soil compaction during construction in low-lying areas, saturated soils,

and/or sensitive soils, low-impact machinery with wide tracks can be used.
When construction of the line is complete, the soil in the ROW in fields that were
accessed by heavy construction traffic should be checked for compaction with a
soil penetrometer and compared to penetrometer readings on soils outside of the
ROW. If compaction within the ROW is detected, appropriate equipment should
be used to restore the soil tilth.
(c) Electric and magnetic fields (EMF):

Electric and magnetic fields occur whenever and wherever electricity is used.
Starting in the late 1970s, researchers began to investigate the possibility that
exposure to magnetic fields might have an adverse effect on human health. Since
then, scientists have conducted many studies designed to determine whether or
not exposure to EMF affects human health. Scientists have uncovered only weak
and inconsistent epidemiological associations between exposure to transmission
line magnetic fields and adverse health effects. There is a growing consensus
within the scientific community that exposure to magnetic fields is not responsible
for human disease.
A common method to reduce magnetic fields is to bring conductors closer

together. The magnetic fields interfere with one another, producing a lower field.
The conductors can be brought closer together by using different types of
structures or double-circuiting two lines on the same structures. However, there
are electrical safety limits to how close together conductors can be placed.
Conductors must be far enough apart so that arcing cannot occur and so that utility
employees can safely work around them.
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22.6. Fuel Storage
Engineering design and construction of Fuel Terminal shall meet Tanzanian

Environmental Law and environmental equivalence provisions, drafted by US
Environment Protection Agency (EPA). Below are general requirements (not
limited) for design, construction and operation of Fuel Terminal:
(a) For Design and Construction:
1. Tank farm shall be equipped by concrete dikes with volume equal to

capacity of tank(s) plus potential rainfall volume;
2. Measures for diked areas drainage and wastewater treatment;
3. Potential seismic impact;
4. Corrosion protection of tanks, pipes, pumps and valves;
5. Engineering of monitoring of overfill prevention;
6. Automatic Fire and Blowout protection.
(b) During Operation:
1. Periodic integrity testing and tanks inspection;

2. Periodic leakage testing of flange joints, locking of valves, catch pans,
pipeline supports;
3. Pre-loading inspection and Auto Cistern overflow monitoring;
4. Periodic testing of Fire Alarm System, Automatic Extinguishing systems and
providing a regular practice of the emergency procedures to be used in case
of fire.
22.7. Water Supply and Sanitation System
The purpose of this section is to provide brief analysis of environmental issues and
impacts to be anticipated during the implementation the proposed project of
Water Supply and Sanitation of Metropolitan City of Dodoma. It also covers
environmental baseline for scoping of further environmental studies to be
undertaken during the design phase and overview of measures to be taken to
minimize potential negative effect of this project.
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The positive impacts:
Commonly infrastructure development projects have both positive and negative

impacts. The impacts identified in this report are based on the size, technology and
duration of the construction. Positive social impacts will be regional in nature and
long term. The Metropolitan City of Dodoma and the peri-urban areas will have
reliable water supply and increased employment from the expansion of the water
based industries with subsequent increase of national income. At the institutional
level, the GOT will be able to meet its targets. These include full coverage of service
areas, progressive increase from community water supply delivery system to tap
in yard to full plumbing and reticulated sewerage.
The Negative impacts:
Negative environmental and social impacts will be direct, localized in nature and
short term as they will occur only during construction. The notable negative short-
term impacts during construction are listed in the table below:
Table 20-1. Negative Impacts and Mitigation Measures
Possible negative impacts related to

the Design and Construction of the Mitigation Measures for Design Issues
Projects
1. Land acquisition for structures and Design of water supply system and location of structures and
pipelines and possibility for disputes over pipelines to be discussed with community from the planning
location of structures, pipe alignment and stage and agreement signed on the location of the structures and
location of discharge place of treated water alignments
Private property should be avoided as much as possible.
Where private property will be affected, negotiations be
undertaken with land owners prior to construction and where
land acquisition is necessary compensation will be effected.
Trenches traversing settlements should be deep enough to allow
for ploughing in the future without damaging the pipes.
2. Visual impact of water tanks Use of material that will blend with the natural environmental is
encouraged.
3. Location of structures and pipelines in Location of structures done in consultation with communities
sensitive areas resulting in erosion and and sensitive areas avoided where possible.
habitat destruction and loss of biodiversity, Construction of scour checks on sloping areas to protect against
protected species, medicinal plants, fuel erosion from pipe trenching included in specifications
wood and other socially and economically
important plants.
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4. Contamination of groundwater due to Mobile toilets should be provided for all teams working on site.
lack of sanitary facilities Sanitary facilities which complies with requirements of Public
Health Order should also be provided at the campsite.
5. Hostility of communities towards Contractor/s to be introduced to the local structures. Contractor
contractor/s should as far as possible recruit locals.
6. Social disruption due to influx of Continuous information dissemination to the community about
Contractor’s personnel developments relating to the project.
Regular site meetings including the community representatives
to proactively solve issues related to the Contractor’s personnel.
7. Increased HIV/AIDS risk due to influx of Contractor to provide HIV/AIDS method statement in line with
Contractor’s personnel Labor Act on HIV and AIDS management at workplace as well as
FIDIC HIV and AIDS Policy.
8. Health and safety of workers Contractor to provide:
• Safety equipment such as helmets, goggles and dust masks;
• Overall and freezer suits for appropriate weather;
• latrines and sanitation facilities for workers, dust bins and
ensure proper use of sanitation facilities and dustbins by staff
and village labor.
Contractor to provide on-site specific health and safety plan to
be approved by the Consultant
9. Gender inequality for job seekers Equal employment opportunities will be provided for both men
and women.
10. Soil erosion, loss of top soil, compaction The construction of trenches will be done in segments and
and crusting from construction of pipelines include construction of scour checks in sloping areas.
and structures resulting in increased All disturbed areas, i.e. excavation around and along all
sediment deposition in streams structures, should be backfilled, compacted and re- vegetated
with indigenous plants and grass to ensure that the land returns
to as close as possible, its original state if not better after
construction.
11. Inadequate restoration of excavated Topsoil shall be stripped and stock piled separately from sub soil
areas and rocky material
Top soil must be used as the final layer during filling of trenches
and around structures.
Cutting or felling of trees and bushes must be restricted to work
area
12. Safety of the community and animals Trenches shall be properly marked for communities and livestock
due to open trenches and access to such areas should be restricted. All open trenches
shall me marked with warning tapes installed on poles 60cm
above ground.
Open trenches should be closed as soon as possible for safety of
people and animals – specific timeframe for opening and closing
trenched should be included in the specifications
13. Dust generation due to construction Dust must be suppressed on construction sites according to site
activities specific mitigation of dust emissions. Mitigation measures
identified must be implemented.
14. Water Abstraction for construction of The provision of water for construction activities shall as far as
structures possible be provided by scheduling the construction work so
that water sources and pipelines are constructed first and used
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for providing water to the areas where the structures will be
constructed
15. Access to construction sites All construction related vehicles, including those of suppliers,
shall keep to the designated routes and shall observe road
traffic laws.
Existing routes should be utilized as much as possible to
minimize erosion.
16. River and stream water pollution Sand for construction shall be mined from approved areas and
through sand mining in consultation with the Local Authorities
17. Contamination from concrete mixing Concrete and mortar should not be mixed straight on the
activities ground as this does not only contaminate the soil, but also
presents a negative visual impact. Cement should be mixed on
impermeable surfaces or using concrete mixers.
Cement contaminated water must be disposed of at an
approved site
Used cement bags should be stored to prevent win blown
cement dust and water contamination.
18. Waste disposal at construction sites General waste be recycled and reused where possible, where it
cannot be reused the Contractors must provide waste bins for
storage of waste which shall be disposed at an approved
disposal site. There shall be no burning of waste.
19. Contamination due to mishandling of Workers should be inducted on handling of chlorine gas and
hazardous material including chlorine emergency preparedness and response plan should the
compiled for handling of chlorine.
All Chlorine houses should be fitted with scrubbers.
20. Disposal of water containing chlorine Method statement for flushing and disinfecting the water
from disinfection of tanks and pipelines supply at commissioning including the identification of the
disinfectant to be used. Ensure the flushing and disinfection is
scheduled when the client representative is present.
21. Inadequate site clearance All materials, waste, equipment and facilities used for
construction activities must be removed from site upon
completion and the site restored as close as possible to its
state before construction.
22. Disruption public infrastructure Cutting of public services like existing water distribution mains,
water reticulation pipes, electricity and telephone posts should
as fair as possible be avoided.
Arrangement should be with utility companies to repairs or
approve repair of disturbed infrastructure promptly.
Contractors should ensure that all access are opened for
property owner at the end of daily activities.
23. Destruction of places of cultural All places of cultural significance to be avoided. It the event that
significance chance finds of archaeological significance are found, the
contractor will be stopped for archaeological assessment.
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XXIII. INVESTMENT CLIMATE*
*Source: by the US Embassy reports
23.1. Overview
Tanzania has sustained an average rate of 6-7% economic growth since the late
1990s due to a relatively stable political environment, reasonable macroeconomic
policies, structural reforms, and a resiliency from external shocks and debt relief.
The IMF projects the economy will continue to grow around 7% in the medium-
term as both public and private investment accelerates and lower inflation boosts
consumption. Inflation has continued to decline due to crop production, lower
food prices, and lower oil prices.
The GOT continues to pursue economic policies to reduce poverty, encourage good
governance, and protect workers’ rights. These include some steps to encourage
private sector-led growth.
Best prospects in Tanzania include the energy and mining sector, given the
country’s deposits of coal, natural gas, and uranium. Tanzania's services sector is
also growing strongly, driven by telecommunications, banking, and trade.
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23.2. Attitude Toward Foreign Direct Investment
The GOT generally has a favorable attitude toward foreign direct investment (FDI)
and has had success in attracting FDI historically. The 2015 World Investment
Report of UN Conference on Trade and Development’s (UNCTAD) reported that
Tanzania attracted $2.142 billion of FDI inflows in 2014, a 14.5% increase from the
previous year, accumulating FDI stock of $14.86 billion, the highest in the East
Africa region.
The Tanzania Investment Center (TIC), established by the Tanzanian Investment

Act of 1997, was created to be “the primary agency of the government to
coordinate, encourage, promote, and facilitate investment in Tanzania”. The
agency acts as a one stop facilitative center for investors, helping to obtain permits,
licenses, visas, and land access among other support.
TIC-approved projects receive TIC certificates of incentives which include VAT and
import duty exemptions and 100% repatriation of profits, dividends, and capital
after tax.
American investors have commented that while the business climate has generally
improved over the past decade, in certain sectors the legacy of socialist attitudes
has not fully dissipated, sometimes resulting in suspicion of foreign investors and
slow decision making.
In 2009, the GOT issued the Public-Private Partnership (PPP) Policy with the PPP
Act and PPP Regulations released in 2010 and 2011, respectively. The arrangement
covers all areas of investment including foreign investment, with an emphasis on
infrastructure development within sectors focusing on construction of roads, rails,
ports, airports, power generation and transmission, and agriculture. The Act was
amended in 2014, and was signed and published in the Gazette in December 2014,
and thus is now law.
23.3. Industrial Promotion
Tanzania established export processing zones (EPZs) and special economic zones
(SEZs) following the enactment of the Export Processing Act of 2002 and the
Special Economic Zone Act of 2006.
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Investment incentives in EPZs offers an exemption from corporate taxes for 10

years; an exemption from duties and taxes on capital goods and raw materials; an
exemption on VAT for utility services and on construction materials; an exemption
from withholding taxes on rent, dividends, and interests; and exemption from pre-
shipment or destination inspection requirements.
23.4. Screening of Foreign Direct Investments
Tanzania Investment Centre does not have specific criteria for screening projects
but considers factors such as: foreign exchange generation, import substitution,
employment creation, linkages to the local economy, technology transfer, and
expansion of production of goods and services. Currently, TIC does not require
companies to disclose proprietary information or meet standard fair competition
practices in order to be approved. Projects with all required documents submitted
are seldom rejected.
23.5. Competition Law
The GOT passed the Fair Competition Act of 2003 to “promote and protect
effective competition in trade and commerce and to protect consumers from
unfair and misleading market conduct.” The Fair Competition Commission (FCC),
established under the Act, is an independent government body mandated to
intervene, as necessary, to prevent significant market dominance, price fixing, and
extortion of monopoly rent to the detriment of the consumer, and market
instability in the country. The FCC deals with all issues of anti-competitive conduct
and has the authority to restrict mergers and acquisitions if the outcome is likely
to create dominance in the market or lead to uncompetitive behavior.
23.6. Conversion and Transfer Policies
Tanzanian regulations permit unconditional transfers through any authorized bank

in freely convertible currency of net profits, repayment of foreign loans, royalties,
fees charged for foreign technology, and remittance of proceeds. The only official
limit on transfers of foreign currency is on cash carried by individuals traveling
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abroad, which cannot exceed $10,000 over a period of 40 days. Shortages of
foreign exchange occur rarely.
Thus, the US Embassy is not aware of any recent complaints from investors
regarding delays in remitting returns and there have been no remittance policy
changes.
23.7. Expropriation and Compensation
Up to 1997 the GOT may expropriate property after due process for the purpose
of national interest. The Tanzanian Investment Law guarantees:
• Payment of fair, adequate, and prompt compensation.
• A right of access to the Court or a right to arbitration for the determination

of the investor’s interest or right and the amount of compensation.
• Any compensation shall be paid promptly and authorization for its

repatriation in convertible currency, where applicable, shall be issued.
The Tanzania Investment Act, adopted by the National Assembly on October 3,

1997, doesn't allow expropriation or nationalization a foreign property.
Since 1985, the Government of Tanzania has not expropriated any foreign
investments.
23.8. Dispute Settlement
The Tanzanian legal system is based on the English Common Law system.
The Court of Appeal of Tanzania, which handles all the appeals from Mainland
Tanzania and Zanzibar, is the highest ranking court in the Country, followed by the
High Court of Tanzania, which handles all types of civil and criminal cases and
commercial matters.
There are three specialized divisions within the High Courts: Commercial, Labor,
and Land. The Labor and Land divisions have exclusive jurisdiction over their
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respective matters, while the Commercial division is without exclusive jurisdiction.
The High Court of Tanzania and the District and Resident Magistrate Courts also
have original jurisdiction in commercial cases subject to specified financial
limitation.
Under Tanzanian regulations, disputes between a foreign investor and the

Tanzanian Investment Center that are not settled through negotiations may be
submitted to arbitration through one of several options:
• Arbitration based on the arbitration laws of Tanzania;
• Arbitration in accordance with the rules of procedures of the International

Centre for Settlement of Investment Disputes (ICSID);
• Arbitration within the framework of any bilateral or multilateral agreement

on investment protection to which the government and the country of the
investor are parties;
• Arbitration in accordance with the World Bank's Multilateral Investment

Guarantee Agency (MIGA), to which Tanzania is a signatory.
• Arbitration in accordance with any other international machinery for

settlement of investment disputes agreed upon by the parties.
Tanzania is a member of both the International Centre for Settlement of

Investment Disputes (ICSID) and the Multilateral Investment Guarantee Agency
(MIGA). ICSID was established under the auspices of the World Bank by the
Convention on the Settlement of Investment Disputes between States and
Nationals of Other States. MIGA is also World Bank-affiliated and issues guarantees
against non-commercial risk to enterprises that invest in member countries.
Tanzania is a signatory to the New York Convention on the Recognition and

Enforcement of Arbitration Awards, though the Arbitration Act of Tanzania does
not give force of law in Tanzania to the provisions of the conventions. An
arbitration award will be recognized as binding once it is filed in a Tanzanian court
and will be enforceable as if it were a decree of the court, subject to the provisions
of the Arbitration Act of Tanzania.
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Tanzania moved to a computerized arbitration system aimed at solving business
related disputes within a short period of time, but backlogs remain.
23.9. Protection of Property Rights
Land ownership remains restrictive in Tanzania.

Under the Land Act of 1999, all land in Tanzania belongs to the State.
Foreign investors may occupy land for investment purposes through a

government-granted right of occupancy ("derivative rights" facilitated by TIC), or
through sub-leases through a granted right of occupancy.
Foreign investors can also partner with Tanzanian leaseholders to gain land access.
Under the Tanzania Investment Act 1997 and the Land Act of 1999, occupation of
land by non-citizen investors is restricted to lands for investment purposes.
Land can be leased for up to 99 years, but the law does not allow individual
Tanzanians to sell land to foreigners.
There are a number of opportunities for foreigners to lease land, including through
TIC, which has designated specific plots of land (a land bank) to be made available
to foreign investors. Foreign investors may also enter into joint ventures with
Tanzanians, in which case the Tanzanian provides the use of the land (but retains
ownership, i.e., the leasehold).
The GOT plans to expand TIC's land bank and modernize its land titling and
registration system, though both changes are long delayed in execution.
Secured interests in property, both movable and real, are recognized and enforced
under various laws in Tanzania.
The Ministry of Lands, Housing, and Human Settlements Development handles

registration of mortgages and rights of occupancies.
The Office of the Registrar of Titles is responsible for issuing titles and registering
mortgage deeds. Title deeds are recognized as a mortgage for securing loans from
banks.
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23.10. Money and Banking System
Although only 14% of the population participates in the formal banking sector,
most banks are considered to be well capitalized and liquidity is above regulatory
requirements, making the banking industry consistently profitable.
By the end of 2015, the banking sector was composed of thirty six fully fledged
commercial banks, six financial institutions and two financial leasing companies.
The banking sector is adequately capitalized and has limited reliance on foreign
borrowing.
Private sector companies have access to a variety of commercial credit instruments

including documentary credits (letters of credit), overdrafts, term loans, and
guarantees.
Foreign investors can open accounts and make deposits in registered private
commercial banks. Interest earned by non-residents or foreign investors from
deposits in banks registered by the Bank of Tanzania (BOT) is exempt from income
tax, in accordance with the Income Tax Act of 2004.
Foreign exchange regulations have been eliminated to attract investors and

simplify international transactions.
23.11. Responsible Business Conduct
Responsible business conduct (RBC) is generally practiced by large foreign firms in

the banking, mining, oil and gas, and telecommunications sectors and is generally
viewed favorably. Responsible conduct includes respecting human rights,
environmental protection, labor relations and financial accountability.
Most large foreign companies practice corporate social responsibility (CSR) and
they typically pay for media coverage of their charitable activities.
The GOT does not usually factor in RBC policies or practices into procurement
decisions, unless the law specifically necessitates otherwise.
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The GOT does enforce local laws, however, the media regularly reports on
corruption cases where offenders avoid legal liability. There have also been reports
where corporate entities in collaboration with local government security organs
carry out controversial undertakings that may not be in the best interest of the
local population.
Tanzania has guidelines on corporate governance for publicly listed companies.

Tanzania also has accounting standards compatible with international accounting
bodies. So far the GOT has not addressed any issues related to executive
compensation standards.
There are no requirements for public disclosure of RBC-related policies, procedure

or practices unless specifically required by law.
Listed companies have to comply with listing conditions including releasing legally
required information to shareholders and the general public.
Several local and foreign Non-Government Organizations (NGOs) monitor and

promote RBC issues in Tanzania, mostly in the extractive sector where foreign
owned companies operate in remote areas and at time come into direct
confrontation with the local population.
Some of these foreign companies have engaged NGOs to mitigate violent conflict
with the communities neighboring the extractive industries sites to avoid
adversarial confrontations.
23.12. Political Violence
Since gaining independence, Tanzania has enjoyed a relatively high degree of

peace and stability compared to its neighbors in the region.
Tanzania has held five national multi-party elections since 1995, the most recent
in 2015. Union government elections have been generally free of political violence.
Elections on the semi-autonomous Zanzibar, however, have been marred by
political violence several times since 1995.
The October 2015 general elections for the union government were conducted in
a largely open and transparent atmosphere. The elections in Zanzibar, however,
Page 234 of 240

were controversially annulled, and a heavily criticized re-run election was held on
March 20, 2016 despite an opposition boycott.
In March 2015, Tanzania expressed interest in creating a task force to prepare the
Country to join potentially the Voluntary Principles Initiative on Security and
Human Rights in the extractives industry, though no formal commitment has been
made by the government.
23.13. Corruption
Tanzania has several laws and institutions designed to combat corruption and illicit
practices. For example, the Prevention and Combating of Corruption Bureau
(PCCB) is a law enforcement institution established and mandated by the
Prevention and Combating of Corruption Act No. 11 of 2007 to prevent corruption,
educate the society on the effects of this problem, and enforce the law against
corruption.
Another example is the Ethics Secretariat (ES) which is an independent department

under President’s office entrusted with powers to monitor the ethical conduct of
public leaders.
The ES was established to enforce standards of ethical behavior and conduct, by
ensuring compliance with the Public Leadership Codes of Ethics Act 1995.
President Magufuli has been aggressively pursuing dishonest and corrupt officials
in the Government of Tanzania (GOT). Though some critics are skeptical as to how
long the reforms will last, in light of the difficult task of tackling deeper structural
issues that have allowed corruption to thrive for so long.
Companies/individuals seeking government tenders are required to submit a

written commitment to uphold anti-bribery policies and abide by a compliance
program. These steps are designed to ensure that company management complies
with anti-bribery polices.
While giving or receiving a bribe (including bribes to a foreign official) is a criminal

offense in Tanzania, enforcement of laws, regulations, and penalties to combat
corruption is largely ineffective.
Page 235 of 240

Corruption is endemic and measures to combat it are applied impartially to both
foreign and domestic investors.
The President of Tanzania, John Magufuli announced that the GOT is in the process
of forming special courts and has directed the judiciary to fast-track the
establishment of special courts to handle corruption and embezzlement cases.
23.14. OPIC and Other Investment Insurance Programs
The U.S. Overseas Private Investment Corporation (OPIC) signed an incentive

agreement with the GOT in December 1996.
While the number of U.S. subsidiaries and affiliated companies eligible for OPIC
financing remains small, a growing number of companies have received OPIC funds
for operations in Tanzania.
Tanzania is an active member of the Multilateral Investment Guarantee Agency

(MIGA), a member of the World Bank Group that promotes foreign direct
investment in developing countries by offering political risk insurance (guarantees)
to investors and lenders, and by providing technical assistance to help developing
countries attract and retain foreign investment.
XXIV. CONCLUSION
Proposed Project is by far the largest and most significant project in Africa for
today.
It is difficult to overestimate the importance of providing sufficient electricity,

drinking water and sanitation service for people in this developing region. The
most significant advantages of the Project are:
(A) Socio-economic benefits
Page 236 of 240

• The project will provide millions of people with decent living and comfort
conditions, sharply reduce morbidity and mortality, including infant
mortality;
• The Project will create thousands of jobs for the local population, which
will significantly increase people's purchasing power, which in turn
stimulates the development of other industries and creation of a network
of small- and medium-sized enterprises;
• Increasing living comfort, the prospects for education and employment

will incentive young people not to replenish the army of refugees and will
not encourage their escape to developed countries;
• The availability of water, sewage and treatment facilities will prevent the
spread of epidemics, in particular, cholera;
• A successful implementation of the Energy Complex will provide a

powerful impulse for development international projects, such as Crude
Oil Pipeline (TOTAL), Trans-continental Railway, Ferrous Metallurgy and for
creation of new, and development of large mining and processing
enterprises, which will cause the further inflow of investments into the
country. The export of electricity and gas to landlocked countries will
significantly raise cash flow to the national budget.
(B) Benefits for right use of great natural resources
Potentially Tanzania is the second largest natural gas producer (after

Mozambique), which will successfully use for large-scale power generation and
electricity exporting. Tanzania have a huge water resources for providing
population of drinking water and for irrigation. Despite the large investment to
the pipeline from Lake Victoria, the social advantages of the Project are immense.
(C) Using of innovative technologies, proper construction sequence and the

shortest possible construction time
There are the most advanced technologies, high-efficiency equipment,

Worldwide equipment producers and top-quality EPC Contractors will be
Page 237 of 240

involved in the Project, such as "MAN TURBO & DIESEL", "SIEMENS", "WORLEY
PARSONS", etc.
In order to provide power supply to the primary construction projects, the 450
MW dual-fuel power plant will be built primarily. Taking into account the short
construction period of the first power block (18 months) and the lack of gas for
supply, within the initial period of operation the generator will operate on cheap
heavy fuel, to be delivered by road tankers from Dar-es-Salaam.
At the same time, the HV transmission lines and gas pipeline should be under
construction.
This will allow to produce the power and starting to generate revenue within the
shortest period.
All of the Project Components will use the most advanced monitoring systems
(e.g. SCADA) for provide reliable remote control for all systems.
For cartography, 3D modelling, construction process monitoring and supervision,

as well as for environment monitoring, the UAV (drones) will be actively used.
(D) Project profitability
Proposed Project is profitable and have a guaranteed net income, which is

ensured by the following:
• Pretty high electricity sale price: US$.12 per kW;
• Acceptable gas purchase price: 3.2 US$/MMBtu at the Injection Station,

fixed during 10 years;
• Acceptable gas sale price: from 8,50 US$/MMBtu (for residence) to 10.50
US$/MMBtu (for industry);
• Highest possibly water and sanitation service sale prices, 1.95 $/1000L and
.78 $/m3 accordingly;
• A 3% of power and gas purchase prices escalation every year;
Page 238 of 240

• Tax exemption for 10 years of operation;
• High-efficiency technology (Combined-cycle generation) and high-quality

of equipment provided by leading German and American producers;
• Shortest possibly completion period.
Each Project Component, except Water/Sanitation Project, have a good

profitability, acceptable ROI and pretty short pay-back period from 4.5 to 6.5
years from the date of first investment. The entire Project, as an integral and
solid entity, have a pay-back period 6.5 years only.
The requested investment of $14.0 billion into Energy Complex, and $15.8 for
entire Project will bring average net income $5.5 and 5.6 billion (before tax)
every year accordingly. Estimated investment return is (in million US dollars):
Project Balance (before tax)

Project Investment 2025 2027
Energy Complex $13,979 4,603 15,613
Water & Sewerage 2,935 0,000 304
Entire Project 15,784 1,836 13,150
(E) Investment protection and Government support
Despite Tanzania, as the most of African Countries, have a pretty low Sovereign
credit rate, the Government of Tanzania have not a negative history of
investment retention, defaults or foreign property expropriation. Tanzania is
inching closer to join the middle-income countries groups thanks to sustained
economic growth that has lowered poverty rate and boosted people's income.
The GOT, and particularly the President, is very anxious to implementing the
Project as well as entire program, targeted to shifting the Capital from Dar-es-
Salaam to Dodoma, and provide Developer the following incentives and benefits:
• Adopted the highest possible purchase prices for electricity, gas, water
and sanitation service:
Page 239 of 240

• Accepted the Project without tender;
• Awarded Developer the status of Strategic Investor, provided tax

exemptions and immigration privileges;
• Provided the State Warranty which is to guarantee payments for electricity

generated, gas and water delivered;
• Agrees for full or, partial prepayment for electricity, gas, water and other
service;
• Have proposed a further energy project extension.
Conclusion: Proposed Project is financially viable. While the investment is

significant, it will bring the great benefits to both Investors and Tanzanians.
On behalf of PETROVILLAGE AG team:
Leonid KHALFINE,
Chairman
Page 240 of 240

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METROPOLITAN CITY OF DODOMA

UNITED REPUBLIC OF TANZANIA

ENERGY COMPLEX AND WATER SUPPLY

PRESENTED BY: JSC “PETROVILLAGE AG”

IV. COUNTRY PROFILE……………………………………………………....……………………………..……………..16

5.1. Scope of Works and Estimated Construction Cost………………………………….….………...20

VI. POWER GENERATION OVERVIEW……………….……………………………………………………..…..…..23

6.1. Government’s Strategy………………………………………………………….…………………..………..23

6.2. Power Demand Forecast………………………………………………….………………………..…….....24

6.3. Load Factor…………………………………………………………………………………………………..……..26

6.4. Tanzania Energy Potential…………………………………………….……………………………………..28

6.5. Retirement of Existing Generators…………………………………………….…..………………..….30

7.2. Advanced Technology…………………………………………………….……………………………....…..31

7.3. Power Plant Solutions………………………………………………………..……………………….…..…..34

7.4. Site Selection………………………………………………………………….……………………………..…....36

7.5. Estimated Project Budget and Operation Expenses………….………………………………..…38

8.2. Scope of Supply…………………………………………………………………………………………..………44

8.3. Description of Basic Equipment……………………………………..……………………………..…….45

8.4. Plant Layout……………………………………………………………………….…………………………..…..49

8.5. Estimated Project Budget and Operation Cost……………………………….………………..….50

9.2. Power Plant Solution……………………………………………………………………………..…………….55

9.3. Estimated Project Budget and Operation Expenses………………………………………………56

X. GAS PRODUCTION OVERWIEV………………………………………………………………….……………….….60

10.1. Natural Gas Reserves……………………………………………………..…………………….…………….60

10.2. Gas Production…………………………………………………………………………….……………………..62

10.3. Gas Demand……………………………………………………………………………………………………….65

XI. PHASE 1 & PHASE 2. DIVISION “B”. NATURAL GAS PIPELINES….…………………………….….…66

11.2. Technical Description of the Project……………………………………………………………………70

11.3. Methodology. Basic Technical Parameters……………………………………………………....…77

11.4. Estimated Project Budget and Operation Cost………………………………….…………….…..80

XII. PHASE 1 & PHASE 2. DIVISION “D”. HIGH-VOLTAGE TRANSMISSION LINES…….…….……..86

12.1. Existing Grid System…………………………………………………………………….…………………….86

12.2. Development of Grid Interconnections………………………………………..…………………….88

12.3. Project Solutions……………………………………………………………………………………….……….89

12.4. Applied Technology……………………………………….……………………………………………..…...91

12.5. HVDC Power System…………………………………………………………………………..………………92

12.6. AC and DC Technology Comparison………………………………………………..………………..101

12.7. The Project Component Construction Cost……………………………………………….….…..105

12.8. Net Transmission Cost……………………………………………………………………………………...109

XIII. PHASE 1. DIVISION “E”. STRATEGIC FUEL STORAGE…………………………………………..……..111

13.2. Fuel Market…………………………………………………………………………….………….……….…..112

13.3. Fuel Prices……………………………………………………………………………………………….…..…..113

13.4. Project Solution………………………………………………………………………………………..………114

13.5. Selection of Construction Site and Environment Protection………........................119

13.6. Terminal Operations………………………………………………………………………………………...119

13.8. Annual Turnover and Operation Cost……………………………………………………………....124

13.9. The Project Construction Cost………………………………………………………………………....126

XIV. POTABLE WATER SUPPLY AND SANITATION SYSTEMS………………………………………….…..128

14.1. Existing Situation……………………………………………………………………………………………..128

14.2. Population Growth and Water consumption………………………………………………...…130

14.3. The Project Solution………………………………………………………………………………………...132

14.4. Pipeline Hydraulics and Pipe Diameter Selection……………………………..……………….135

14.5. Pipeline Construction……………………………………………………………….......................…140

14.7. Water Treatment Technology……………………………………………………….………………....143

14.8. Water Towers………………………………………………………………………………….…………….…146

14.9. Water Storage…………………………………………………………………………………………….…...147

14.10. Water Purification System………………………………………………………………………….…..148

14.11. Water Intake, Treatment and Distribution Cost……………..………………………..…....148

14.12. Sewage Treatment Plants…………………………………………………………………………….…150