International power developer Symbion Power filed an application for arbitration to the International Court of Arbitration in Paris earlier this month, claiming USD 561 to the Tanzania Electric Supply Company Limited (TANESCO).
The filing follows a dispute over the validity of a power purchase agreement between the power producer and the state-owned utility company, signed in December 2015.
When contacted by TanzaniaInvest, Symbion spokeswoman Ms. Julie Foster explained that after trying to resolve the dispute about the 15 years Power Purchase Agreement in a friendly manner for more than a year, the company ran out of options.
“The Power Purchase Agreement has been terminated and the amount claimed is USD 561 million USD. Since the case is a very simple case to adjudicate, we hope that it will not take too long for the arbitration to come to a conclusion,” Ms. Foster clarified.
SYMBION POWER IN TANZANIA
Following widespread power shortages in Tanzania since 2011, the country approved a program to import and install more than 400 MW of diesel-fired temporary generators.
Since then, Symbion has operated three on-grid plants in Tanzania: two emergency power plants and the 120MW Ubungo gas power plant.
However, Ms. Foster explains that while Symbion operated the power plant, it have always been owed huge amounts of money by TANESCO.
When contacted by media, TANESCO declined to comment on the matter.
