Electricity (Procurement of Power Projects and Approval of Power Purchase Agreements) Rules, 2018.
Country
Type of law
Regulation
Abstract
These Regulations, consisting of 49 Sections, govern the regulatory processes related to the initiation and procurement process of power projects and the approval of power purchase agreements in Mainland Tanzania and not apply to (a) the procurement of electricity transmission or distribution infrastructure, unless directly related to purchase of power; (b) procurement and approval of power purchase agreements related to small power projects; (c) procurement of generation projects that are wholly owned and operated by a purchasing licensee; (d) sale of electricity to eligible customers; or (e) electricity purchase and sale in markets determined by the Authority to be competitive.
The procurement of power projects is governed by a structured process that begins with Normal Procurement. This method requires approval from the Energy and Water Utilities Regulatory Authority (EWURA), which conducts a thorough evaluation of a project's feasibility and risks. EWURA can then approve, reject, or send the application back for revision. For Competitive Procurement, the process involves issuing a Request for Qualifications (RFQ) followed by a Request for Proposals (RFP). Bids are evaluated on both price and technical capacity, and preferred bidders are required to post bonds before completing the necessary project development steps. Additionally, the Regulations allow for Unsolicited Proposals as long as their costs and risks are deemed reasonable and major project components are put up for competitive tender. In the event of a declared emergency, Emergency Procurement allows for expedited approval and procurement processes. However, even in these cases, Power Purchase Agreements (PPAs) must still meet all regulatory standards and receive EWURA approval. All Power Purchase Agreements (PPAs), whether from normal or emergency procurement, must be negotiated and submitted to EWURA for final approval. The Authority evaluates each PPA based on its cost, fairness, and overall economic impact. Once approved, these agreements can be factored into regulated tariffs. The Regulations also include measures for accountability, with penalties for violations that can lead to fines or imprisonment. Disagreements can be settled through a formal dispute resolution process, with appeals directed to the Public Procurement Appeals Authority or the Fair Competition Tribunal.
When the Minister declares a power sector emergency, a purchasing licensee can apply to EWURA for emergency procurement. The application must include the Minister's declaration and project details. EWURA will then approve, reject, or refer the application. If approved, the licensee can proceed. EWURA may also grant a six-month provisional approval, contingent on a progress report. Finally, to start the procurement process for a new power project, written applications to the Authority must include all relevant project information, such as feasibility studies, environmental and social impact assessments, and site appraisals.
The procurement of power projects is governed by a structured process that begins with Normal Procurement. This method requires approval from the Energy and Water Utilities Regulatory Authority (EWURA), which conducts a thorough evaluation of a project's feasibility and risks. EWURA can then approve, reject, or send the application back for revision. For Competitive Procurement, the process involves issuing a Request for Qualifications (RFQ) followed by a Request for Proposals (RFP). Bids are evaluated on both price and technical capacity, and preferred bidders are required to post bonds before completing the necessary project development steps. Additionally, the Regulations allow for Unsolicited Proposals as long as their costs and risks are deemed reasonable and major project components are put up for competitive tender. In the event of a declared emergency, Emergency Procurement allows for expedited approval and procurement processes. However, even in these cases, Power Purchase Agreements (PPAs) must still meet all regulatory standards and receive EWURA approval. All Power Purchase Agreements (PPAs), whether from normal or emergency procurement, must be negotiated and submitted to EWURA for final approval. The Authority evaluates each PPA based on its cost, fairness, and overall economic impact. Once approved, these agreements can be factored into regulated tariffs. The Regulations also include measures for accountability, with penalties for violations that can lead to fines or imprisonment. Disagreements can be settled through a formal dispute resolution process, with appeals directed to the Public Procurement Appeals Authority or the Fair Competition Tribunal.
When the Minister declares a power sector emergency, a purchasing licensee can apply to EWURA for emergency procurement. The application must include the Minister's declaration and project details. EWURA will then approve, reject, or refer the application. If approved, the licensee can proceed. EWURA may also grant a six-month provisional approval, contingent on a progress report. Finally, to start the procurement process for a new power project, written applications to the Authority must include all relevant project information, such as feasibility studies, environmental and social impact assessments, and site appraisals.
Attached files
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Date of text
Repealed
No
Source language
English
Legislation Amendment
No