Post Evaluation of Pangani Falls Re-development

The Nordic countries have contributed to the development of Tanzania’s energy sector since mid 1960’s, with heavy emphasis on the building of hydroelectric power stations. In 1989, Norway, Finland and Sweden jointly decided to finance the Pangani Falls Redevelopment Project (PFRP) in Hale. The feasibility study for the Pangani Falls Redevelopment Project was prepared 1990, construction started in 1991 and the project was officially commissioned in 1995. The power production (of an anticipated 66MW) in Pangani started 1994-95 and gives an important power contribution to the national grid (1995 of about 17% while by 2004 about 10%).

The Pangani Falls Power Station is located downstream of a large dam (Nyumba ya Mungu) and in a river basin area characterized by conflicts over water rights and use. The power station had been operating below capacity due to lack of water and this affected the post-evaluation. The technical efficiency of the plant was confirmed to be completely acceptable, but the efficiency of the original investment is called into question by the unresolved water use conflicts.