UNITED REPUBLIC OF TANZANIA Mini by pengtt

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									UNITED REPUBLIC OF TANZANIA
Ministry of Energy and Minerals
 RURAL ENERGY AGENCY (REA)
              INTRODUCTION
• The Rural Energy Agency (REA) was established
  by the Act of Parliament in 2005 as an
  autonomous institutions to promote and
  facilitate access to modern energy services in
  rural areas.
• The main functions of REA is to promote
  development of rural energy projects by
  providing grants and subsidies as well as working
  with private sector, NGOs, CBO, Development
  Partners and Government institutions .
 ENERGY SITUATION IN TANZANIA
• The majority of rural Tanzanians have no
  access to modern energy services including
  electricity supplies
• About 12 percent of households in Tanzania
  are connected to the electricity grid, with rural
  coverage of only 2.5 percent in 2007
     RURAL ENERGY FUND (REF)
• The Rural Energy Fund (REF) was established
  by The Rural Energy Act, 2005 for the purpose
  of providing grants to qualified project
  developers;
• The REF provides capital subsidies to rural
  energy projects through a trust agent;
• The REF provides training, capacity building
  and technical assistance to project developers.
          SOURCES OF FUNDS
• Government annual budgetary allocation;
• Contribution from international financial
  organization, multilateral and bilateral
  agencies and other Development Partners;
• Levy of up to five percent on the commercial
  generation of electricity;
• Interest or return on investment;
               CHALLENGES
• Inadequate funds. For instance electricity
  projects which have been identified are
  estimated to cost about Tsh. 1.2 trillion (US$
  1bn);
• Private sector in Tanzania has a very limited
  capability to invest in rural energy project
  which requires substantial capital investment;
• Low purchasing power of rural communities.

								
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