Hotel and hospitality industry stakeholders in Tanzania are expecting to see the end of erratic and expensive power supply to their establishments as multi-million dollar power generation and distribution projects launched.

Under the funding from Tanzanian government, the Tanzania Electric Supply Company is expecting to produce and increase power supply in key business ventures, including tourist hotels, mostly located in the capital city of Dar es Salaam.

Through the government funding of US$4 billion to boost electricity generation and supply in Tanzania between 2014 and 2016, big investment ventures including tourist hotels will be relieved from unreliable power supply.

Tanzania Electric Supply Company, a sole power generating and distribution entity had embarked on big power projects aimed to end power rationing or load shedding in key business ventures in Tanzania.

The utility company plans to invest big chunks of money to gas and coal power generation projects, targeting major business localities in Tanzania, the company’s managing director Mr. Felchesm Mramba said.

Increased gas supplies and new investments in the energy sector within Tanzania are expected to produce power surplus of 1,500 megawatts by 2015 providing the possibility to export electricity, Mr. Mramba said.

In total, Tanzania is expecting to generate 3,000 megawatts, making this country among top African countries boastful of adequate power supplies, Mr. Mramba said.

Despite pitfalls in power supply during the past 15 years, new projects targeting massive production of electricity through funding from various international financial institutions under agreements with the government of Tanzania.

“We are looking to see power shortage in Tanzania delve in archives and a history of the past,” Mr. Mramba told eTN.

On spot visit to power generation plants in Dar es Salaam justified the utility company’s plans to end power blues. Tanzania government is currently implementing a restructuring plan of the Tanzania Electric Supply company so as to make it more productive and competitive.

Members of the Hotel Association of Tanzania (HAT), an umbrella organization that oversees 80 leading and key hotels in Tanzania, had earlier decried over extra costs for fuel to run activities that needed power.

The hotel industry, just like the rest of the production sector, has been hurt in one way or the other by the power crisis during the past two years before the government took appropriate measures to rectify the situation.

Hotel industry stakeholders once said power shedding was damaging the image of tourism in Tanzania, taking into a reality that visitors don’t appreciate traffic lights not working on streets, elevator breakdowns, and no lights at hotel rooms and lacking laundry services.

Some hotels have once incurred extra operational costs of between US$1,000 to US$18,000 to foot fuel and maintenance costs for standing generators each day during power shedding hours.

It has been observed that the growth of hotels and restaurants in Tanzania will jump from 7.7 percent and 9.9 percent in 2015.

Other than big cities and towns, Tanzania Electric Supply Company is currently working with international institutions to supply electricity in most rural areas of Tanzania, including the Southern Highland areas where tourist projects are springing up.

Other such areas targeted for power supply projects are Lake Victoria and Central parts of Tanzania where key investment ventures are coming up.

After decades of dependence on hydro-power, now, the utility company is investing heavily power generation from natural gas and coal, the major sources of electricity generation in most European countries and South Africa, Mr. Mramba said.

Trillions of cubic liters of natural gas and millions of cubic meters of coal have been discovered in southern parts of Tanzania, bringing new hopes to see the end of power generation and supply in this African country.