Annual general report of the controller and - Parliament of Tanzania

8.1 Power purchase agreement by Songas Limited - TANESCO
Review of the power purchase agreement between
TANESCO and Songas Ltd revealed that TANESCO has the
right and hence was to review all the initial Songas project
costs to confirm that the project costs were as provided by
Songas. This finalization of project costs is still pending
while TANESCO continues to pay to Songas capacity charges
based on the original stated Songas project costs. This
constitutes a major concern in decision making since these
initial project costs form the basis of approximately US$ 5
million monthly capacity charges that continues to
significantly cripple TANESCO’s liquidity.
I am of of the opinion that management should
immediately review the Songas project cost to establish
the correct amount which should be paid by TANESCO.
8.2 Development of Dar es salaam water front by TPA -
Shs.433,837,547
A review made on the procurement processes and
contracting procedures for the agreement entered between
TPA and M/S CPCS Consultants for development of Dar es
Salaam water front at a contract price of Shs. 433,837,547
had the following anomalies:
S/N Item/Anomaly Description
1.
Evaluation of
expression of
interest
2. Informal
arrangements
There was no evaluation report
regarding the expression of interest on
development of water front instead the
report prepared by the PMU to the
tender board was used as an evaluation
report
Director of planning wrote to Director
General requesting approval for prefeasibility
study on the project and
stated to have conducted informal
consultancy and informally had
requested M/s CPCS Consultants to
perform the assignment.
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Office of the Controller and Auditor General PA&oBs 2007/08 138