tanzania electric supply company limited...

TANZANIA ELECTRIC SUPPLY COMPANY LIMITED BACKBONE TRANSMISSION INVESTMENT PROJECT {BTIP)

REPORT ANO FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2017

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TANZANIA ELECTRIC SUPPLY COMPANY LIMITED BACKBONE TRANSMISSION INVESTMENT PROJECT (BTIP)

REPORT AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2017

TABLE OF CONTENTS

Background information

Project implementation progress

Statement of management responsibilities

Declaration of the head of finance

Independent auditor's report

Financial statements:

• Statement of income and expenditure

• Notes

Appendix

Page No.

1 - 3

4-6

7

8

9 - 11

12

13 - 16

17 - 20


MANAGEMENT REPORT FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2017

1 BACKGROUND INFORMATION

1. 1 Background

Tanzania Backbone Transmission Investment Project {BTIP) was part of Tanzania Electric Supply Company Limited (TANESCO) National Grid reinforcement strategy which provides access to cost-efficient electricity essential for private sector development in the country.

The project comprised the construction and operation of a 670kms, 400kV AC double circuit transmission overhead line between lringa, Dodoma, Singida and Shinyanga. The link will transfer hydropower generated in the southern to northern Tanzania, currently experiencing strong economic growth and increased demand for electricity due to developing mining and industrial activities. Eventually the line will become part of the infrastructure connecting the East and Southern African Power Pools (EAPP and SAPP).

1.2 Project financing

The project was financed by International Development Association (IDA), African Development Bank (AfDB), Japan International Cooperation Agency (JICA), European Investment Bank (EIB), Korean Economic Development Cooperation Fund (EDCF) and the Government of United Republic of Tanzania/TAN ESCO.

International Development Association (IDA) financed lringa to Dodoma section of the line at an estimated cost of US$ 150 million, Dodoma to Singida section was co-financed by AfDB/JICA at an estimated cost of US$ 129.7 million, while Singida to Shinyanga section of the transmission line was financed by European Investment Bank {EIB) at an estimated cost of US$ 134.50 million. Substation expansion was financed by Korean Economic Development cooperation Fund (EDCF) at an estimated cost of US$ 36.416 million. Environmental, Social Safeguards and operations costs component of the project was co-financed by the Government of the United Republic of Tanzania and TANESCO at an estimated cost of US$ 18.18 million.

In addition, various development partners like Swedish International Development Agency (SIDA), NORAD and REA have shown interest in financing an electrification program that will support the electrification of cities, villages and towns along the proposed Backbone Transmission Line, as part of the social mitigation measures identified in the project's Environmental and Social Impact Assessment (ESIA).


MANAGEMENT REPORT (CONTINUED) FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2017

1. BACKGROUND INFORMATION (CONTINUED)

1.2 Project financing (Continued)

The details of the approved loans and associated funding so far released by the financiers to the project up to 301h June 2017 are as shown below:

Details

Approved amount 1DA-4780TA AfDB.2100150023196 JICA Loan P10 EIB Credit no. 25950 EDCF TZA-6 GOT/TANESCO

Disbursed amount 1DA-4780TA AfDB 2100150023196 JICA Loan P10

EIB Credit no. 25950 EDCF TZA-6 GOT/TAN ESCO

Approved but not disbursed

Loan Currency

SDR UA JY EURO KRW TZS

SOR UA JY

EURO KRW TZS

Amount

61,740,000 45,360,000

6,048,000,000 100,652,000

41,964,000,000 23,000,000,000

US$ Equivalent

94,000,000 68,870,000 64,850,000

134,500,000 36,416,000 18,180,000

416,816,000

60,566,379 29,159,382 30,635,111

57,582,475 31,964,443 17,788,669

227,696,459

189,119,541

The huge undisbursed amount in the Transmission line lots caused by higher estimated cost during the Feasibility Study compared to response of the market during bidding process. During bidding process the market responded with high competition which resulted to a very unusual low prices. However, from Feasibility Study the project was designed to be implemented in two phases due to economic reasons. Phase I included construction of 400kV transmission line and energized at 220kV level. The second phase of the project was to involve the construction of 400/220kV substations to the same regions. As per Feasibility Study implementation of Phase II was earmarked to be implemented by 2020. However, due to substantial savings in Phase I, it was decided to utilize savings for implementation of Phase II. This approach is of great advantage as it is in line with the current decision by the Government of United Republic of Tanzania which encouraging economic development through industrialization.

2



1. BACKGROUND INFORMATION (CONTINUED)

1.2 Project financing (Continued)

Subsequent to the Project Completion date, TANESCO was able to renegotiate with international donors and signed new Agreements to utilize the undisbursed balances from Backbone Transmission investment project (Phase I) to be used for Backbone Transmission investment project (Phase II).

1.3 Management of the Project

Backbone Transmission Investment Project (BTIP) is headed by the Project Coordinator who reports to the Deputy Managing Director - Investment. The Project Coordinator is being assisted by five officials; one Project Manager responsible for the three transmission line (lots 1, 2 & 3) supported by nine Project Engineers; One Project Manager responsible for the substation expansion lot 4, supported by three Project Engineers; and one Project Manager for rural electrification supported by two Project Engineers; one financial specialist responsible for all financial issues of the project; and one procurement specialist responsible for all procurement issues of the project supported by a procurement officer.

2. PROJECT IMPLEMENTATION PROGRESS

2.1 Transmission line implementation status

Implementation of a 400kV Transmission Line (TL) 670 kms from lringa to Shinyanga commenced in December 2013 after three Engineering, Procurement, Construction (EPC) contracts signed in August 2013. Implementation of transmission line (TL) was divided into three Lots namely Lot 1 for a portion of 225 kms from lringa to Dodoma, Lot 2 is for 217 kms from Dodoma to Singida and Lot 3 is for the remaining 228 kms from Singida to Shinyanga. Construction in each lot stood as a separate contract which was executed by two Engineering, Procurement, Construction (EPC) Contractors, one having two contracts for Lot 1 & 3 parts. The constructed 400 kV TL from lringa to Shinyanga was through the extended substations in lringa, Dodoma, Singida and Shinyanga.

As of 30th June 2017, construction activities of TL from lringa to Shinyanga achieved 100% as the overall completion of works whereby 1,747 tower foundations cast which is 100% completed, 1,747 towers erected (100%) and stringing of conductors completed in 670 kms of the whole stretch of the line equivalent to 100%. Below are additional comments for each lot:

• Lot 1: Construction of TL in the portion from lringa to Dodoma is completed and commissioned on 29th August 2016 and the completion certificate has been issued;

• Lot 2: Construction of TL in the portion from Dodoma to Singida is completed and commissioned on 281h November 2016 and the completion certificate has been issued; and

• Lot 3: Construction of TL in the portion from Singida to Shinyanga is completed and commissioned on 061

h October 2016 and completion certificate issued.

3



2 PROJECT IMPLEMENTATION PROGRESS (CONTINUED)

2.2 Substation

2.2.1 Substation implementation status

The substation works involved extending the four (4) substations under Backbone Transmission investment project (BTIP) to facilitate interconnection of newly constructed 400kV transmission line and energized on 220kV to integrate the same into TANESCO 220kV Grid. This was achieved by extending the existing substation by relevant bays as contained in the contract.

On top of that compensating equipment, installation of new equipment to upgrade the existing substations into double bus bar, and changing substation control from conventional to digital are among the works carried out by the project. As of 301h June 2017, the implementation status is as shown below:-

• Engineering 100%; • Procurement 100%; and • Construction 100%

2.3 Achievements

The following were the project's impact and outcomes achieved based on targets sets at the beginning of the project.

Project Baseline 2012/2013 Planned target by Actual results as at ~mpact end of protect 3otr, June 2017 Contribution to Electrification rate in 4 Regions near the Project Area (lringa, Dodoma, hational Sinaida and Tabora): economic lringa: 9% lringa: 16% lringa: 40% development Dodoma: 8% Dodoma: 14% Dodoma: 24% hrough Singida: 5% Singida: 10% Singida: 22%

expansion of Shinyanga: 5% Shinyanga: 16% Shinyanga: 13% electricity orovision l=nhancement Consumable demand of the electricity: bf quality of lringa: 84,608 MWH lringa:124,645 MWH lringa: 139,373 MWH electricity Dodoma:18,598 MWH Dodoma: 26,290 Dodoma: 154,246 orovision Singida: 26,476 MWH MWH MWH

Shinyanga:252,897 MWH Singida: 32,577 MWH Singida: 44,748 MWH Shinyanga: 337,365 Shinyanga: 483,307 MWH MWH

4



2. PROJECT IMPLEMENTATION PROGRESS (CONTINUED)

2.3 Achievements (Continued)

roject Outcome Baseline 201212013 Phmned target by end of ·" ect

Actual resmts as at ~June20f7

xtension of lectricity facility nd increase of fficiency of the acility in Project rea

Average transmission losses between lringa and Shinyanga per month:

24% 5.5% 5.9%

Transmission capacity between lrin a and Shinyanga** 206 MN 618 MN 279 MW

Number of consumers connected to electricity facilities between lrin a and Shin an a: lringa: 24,209 lringa: 35,665 Dodoma: 24,021 Dodoma: 33,957 Singida: 9,838 Singida: 12,445 Shin an a: 16,425 Shin an a: 21,911

4.4 trips per feeder 2 Trips per feeder

lringa: 72,509 Dodoma: 75,695 Singida: 30,509 Shin an a: 38, 111

0.3 trips per feeder

**The transmission capacity from lringa to Shinyanga is I OOOMW if the 220kV is fully charged ( or 2000MW if the 400kV is fully charged) as compared to the target of 61 SMW. However, currently an average of 279MW is been reported due to decrease consumer demand, especially the mining companies which are operating within the project zone as they exhibited a significant decline in mining production during the period.

5



2. PROJECT IMPLEMENTATION PROGRESS (CONTINUED)

2.4 Compensation and claims from project affected persons (PAPs)

The compensations for PAPs were paid under Environmental, Social Safeguards and operations costs component of the project. Items compensated mainly were properties (such as land, crops, houses, public offices and graves) which were required to leave way for transmission line. The payment were done based on evaluation performed by accredited government valuers from respective local government authorities (District and Municipal Councils) where the transmission line passed. The initial valuation was done before project implementation, and PAPs were duly compensated in the initial stage of project implementation. However, a number of complaints in relation to undervaluation and/or omission of some properties arose during the project implementation phase and thus, called for second evaluation and addition compensation payments.

Despite that, up to 301h June 2017 some PAPs were still complaining of either being under

compensated or completely overlooked. Thus, further PAPs payments are likely to be made subsequently once the due diligence review process as well as legal proceedings for these complains is completed. The table below present a summary of potential additional PAP compensation claims from each respective areas.

District

lgunga District lkungi District lramba District Mayoni District Singida District Substation Singida Municipal

Total in TZS

Total in US$ Equivalent

Number of PAPs** 12 6 10 5 13 12

** A detailed breakdown showing list of individual PAPs is provided under Appendix 1 ol this report

Dr. Alexander L. Kyaruzi Board Chairman - TANESCO

Amount to be paid (TZS) 45,670,682 43,297,949 21,264,790

1,680,000 27,221,936 39,239,637

178,374,994

79,989

2'2 / O'L l 'J.-0 (~ Date

6


STATEMENT OF MANAGEMENT RESPONSIBILITIES FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2017

The management of Backbone Transmission Investment Project is required to present financial statements for each financial period that are prepared in all material respect in accordance with the accounting policies described in Note 1 to the financial statements. Further, management is responsible for keeping proper accounting records that disclose, with reasonable accuracy at any time, the financial performance of the project. Management is also responsible for safeguarding the assets of the project and hence taking reasonable steps for the prevention and detection of fraud, errors and other irregularities.

Management accepts responsibility for the financial statements, which have been prepared using appropriate accounting policies and supported by reasonable and prudent judgments in conformity with the basis of preparation set out in Note 1 to the financial statements. Management is of the opinion that the project's financial statements have been prepared, in all material respects, in accordance with the accounting policies described in Note 1 to the financial statements. Management further accepts responsibility for the maintenance of accounting records that may be relied upon in the preparation of the project's financial statements, as well as designing, implementing and maintaining internal control relevant to the preparation and presentation of financial statements that are free from material misstatement whether due to fraud or error.

Signed on behalf of the management by:

Dr. Alexander L. Kyaruzi Board Chairman -TANESCO

Date I

7


DECLARATION OF THE HEAD OF FINANCE ON FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2017

The National Board of Accountants and Auditors (NBAA) according to the power conferred under the Auditors and Accountants (Registration) Act. No. 33 of 1972, as amended by Act No. 2 of 1995, requires financial statements to be accompanied with a declaration issued by the Head of Finance/Accounting responsible for the preparation of financial statements of the entity concerned.

It is the duty of a Professional Accountant to assist the management to discharge the responsibility of preparing financial statements of an entity showing true and fair view of the entity position and performance in accordance with applicable International Accounting Standards and statutory financial reporting requirements. Full legal responsibility for the preparation of financial statements rests with the management as per the statement of Management Responsibility on an earlier page.

I, Renata C. Ndege being the Chief Finance Officer of TANESCO hereby acknowledge my responsibility of ensuring that financial statements of Backbone Transmission Investment Project (BTIP) for the period 1st July 2016 to 30th June 2017 have been prepared in compliance with applicable accounting standards and statutory requirements.

I thus confirm that the financial statements give a true and fair view position of Backbone Transmission Investment Project (BTIP) as on that date and that they have been prepared based on properly maintained financial records.

Signed by:

'---" Position: Chief Finance Officer

NBAA Membership No: ACPA 1721

Date

8

INDEPENDENT AUDITOR'S REPORT

TO THE MANAGEMENT OF TANZANIA ELECTRIC SUPPLY COMPANY LIMITED IN RESPECT OF BACKBONE TRANSMISSION INVESTMENT PROJECT (BTIP) FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2017

Report on the audit of the financial statements

Our Opinion

In our opinion, the financial statements of Backbone Transmission Investment Project (the "Project") for the period 1st July 2016 to 30th June 2017 are prepared, in all material respects, in accordance with the basis of accounting described in Note 1 to the financial statements.

What we have audited

The financial statements of Backbone Transmission Investment Project are set out on pages 12 to 16 comprise:

• the statement of income and expenditure for the period then ended; and • the notes to the financial statements, which include a summary of significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Project in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) and other ethical requirements of the National Board of Accountants and Auditors (NBAA) that are relevant to our audit of the financial statements in Tanzania. We have fulfilled our other ethical responsibilities in accordance with the IESBA Code and the ethical requirements of the NBAA.

Emphasis of Matter - Basis of Accounting

We draw attention to Note 1 to the financial statements, which describes the basis of accounting. The financial statements are prepared in accordance with entity's own accounting policies to satisfy the financial information needs of the entity's members or users of the financial statements. As a result, the financial statements may not be suitable for another purpose. Our opinion is not modified in respect of this matter.

Other information

The management of Backbone Transmission Investment Project are responsible for the other information. The other information comprises of the management report, statement of management responsibilities and declaration of the head of finance on the financial statements. Other information does not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we do not and will not express an audit opinion or any form of assurance conclusion thereon.

9

INDEPENDENT AUDITOR'S REPORT (CONTINUED)


Report on the audit of the financial statements (Continued)

Other information (Continued)

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of management for the financial statements

The management are responsible for the preparation of the financial statements in accordance with the basis of accounting described in Note 1 and the requirements of the any other legal guidelines and for such internal control as the management determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the management are responsible for assessing the ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the management either intend to liquidate the Project or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.

10

INDEPENDENT AUDITOR'S REPORT (CONTINUED)


Report on the audit of the financial statements (continued)

Auditor's responsibilities for the audit of the financial statements (Continued)

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of the managements' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Project to cease to continue as a going concern.

We communicate with the management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify durin r audit.

For and on behalf of PricewaterhouseCoopers Certified Public Accountants Dar es Salaam

Date:

11


FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2017

STATEMENT OF INCOME AND EXPENDITURE Note 2017

US$ (000) Income Opening balance 3,251 Funds received from financiers 2 28,349

31,600

Expenditure Transmission line 3 24,320 Substation expansion 4 4,609 Technical assistance 2,138 Other costs 5 91 Refund to IDA 6 506

31,664

(Deficit)/Surplus for the period end (64)

Represented by:

IDA Designated bank account - CRDB GOT/TAN ESCO Designated bank account - CRDB Due to T ANES CO 7 (64)

(64)

2016 US$ (000)

3,954 51,025

54,979

36,317 12,376 2,397

638

51,728

3,251

3,217 34

3,251

The financial statements on ,rages 12 to 16 were approved for issue by TANESCO's Board of Directors on 2 ) t) l- \ 1,-o l ~ and signed on its behalf by:

Dr. Alexander L. Kyaruzi Board Chairman -TANESCO

12



NOTES

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of accounting

The financial statements have been prepared on a cash basis of accounting.

(b) Income

Income comprises of funds received from financiers and direct payments made by financiers to suppliers/consultants. Income from financiers is recognized in the books of account when received (that is when credited in the BTIP's designated bank accounts). Direct payments made by financiers to suppliers/consultants are also recognized as income when paid to third parties and confirmed in writing by the financiers.

(c) Expenditure

Expenditure in respect of goods and services is recognized in the books of account when paid for. Direct payments made by financiers to suppliers/consultants are also recognized when the expenditure is paid for.

(d) Plant and equipment

Plant and equipment purchased under this financing facility are capitalized in the books of accounts of Tanzania Electric Supply Company Limited and are accounted for as expenditures in these special purpose financial statements in the period of acquisition. Asset disposals are recognized as income at the time of sale.

(e) Cash at bank and in hand

This comprises cash in hand and at bank.

(f) Foreign currency translation

The financial statements are presented in United States Dollars which is the project's presentation currency. Transactions denominated in other currencies are translated into United States Dollar using the exchange rates prevailing at the dates of the transactions. Balances in other currencies at the period end are translated into United States Dollar at the rate ruling at that date.

13



NOTES (CONTINUED)

2017 2016 US$'000 US$'000

2 FUNDS RECEIVED FROM FINANCERS

International Development Association (IDA) 4,232 8,004 African Development Bank (AfDB) 5,975 6,150 Japan International Cooperation Agency (JICA) 4,255 11,861 European Investment Bank (EIS) 9,278 12,407 Economic Development Cooperation Fund (EDCF) 4,609 12,376 Government of Tanzania ("GoT")/TANESCO 227

28,349 51,025

3 TRANSMISSION LINE

lringa to Dodoma Section (IDA) 4,790 5,964 Dodoma to Singida Section (AfDB) 5,975 6,085 Dodoma to Singida Section (JICA) 4,277 11,861 Singida to Shinyaga Section (EIS) 9,278 12,407

24,320 36,317

4 SUBSTATION EXPANSION

lringa and Dodoma Substation (EDCF) 2,532 6,188 Singida and Shinyanga (EDCF) 2,077 6,188

4,609 12,376

5 OTHER COSTS

Environmental and Social Issues (GoT/TANESCO) 42 390 TANESCO Project Management (GoT/TANESCO) 49 248

91 638

14



NOTES (CONTINUED)

6 REFUND TO IDA

Bank Transfer - IDA designated bank account

2017 US$'000

506

2016 US$'000

The amount relates to the residual cash balance which was held in the project designated bank account of which all transfer from IDA were deposited to facilitate payments that were made to third parties by project management during the course of project implementation. Following the completion of the project, the balance was refunded to IDA on 29th June 2017.

7 DUE TO TANESCO

As at 30th June 2017, Japan International Cooperation Agency (JICA) was yet to disburse Japanese ¥ 7,179,897 (Equivalent to US$ 63,539) for the final project implementation costs paid on its behalf by TANESCO. The amount was subsequently disbursed and received by TANESCO on 7th July 2017.

8. DETAILS OF SUBCOMPONENT ASSIGNMENTS OF THE PROJECT

Transmission line

(i} lringa to Dodoma section (Lot 1}

This was a sub component of the proposed overhead 400kV double circuit Backbone Transmission Investment Project which consists of supply and installation contract related to transmission line including a Fiber Optic Communication Line (FOCL). M/s KEC International Ltd, INDIA implemented this component at a contract price of US$ 53,334,446 and TZS 17,295,604,693 respectively. The cumulative amount which has been spent under this component up to 30th June 2017 is US$ 53,619,000 (2016: US$ 48,829,000)

(ii} Dodoma to Singida section (Lot 2)

This was a sub component of the proposed overhead 400kV double circuit Backbone Transmission Investment Project which consists of supply and installation contract related to transmission line including a Fiber Optic Communication Line (FOCL). M/s JYOTI Structures Ltd, INDIA implemented this component at a contract price of US$ 51,879,058 and TZS 22,130,024,433 respectively. The cumulative amount which has been spent under this component up to 30th June 2017 is US$ 44,324,000 (2016: US$ 34,072,000)

15



NOTES (CONTINUED)

8 DETAILS OF SUBCOMPONENT ASSIGNMENTS OF THE PROJECT (CONTINUED)

(iii) Singida to Shinyanga section (Lot 3)

This was a sub component of the proposed overhead 400kV double circuit Backbone Transmission Investment Project which consists of supply and installation contract related to transmission line including a Fiber Optic Communication Line (FOCL). M/s KEC International Ltd, INDIA implemented this component at a contract price of US$ 63,258,868. The cumulative amount which has been spent under this component up to 30th June 2017 is US$ 57,583,000 (2016: US$ 48,305,000)

Substations expansion

Expansion of lringa/Dodoma/Singida/Shinyanga substations (Lot 4)

This was a sub component of the proposed overhead 400kV double circuit Backbone Transmission Investment Project which consists of the upgrading of 220kV substation of lringa, Dodoma, Singida and Shinyanga, including additional feeders, shunt reactor compensation equipment and disconnections. A Consortium of GS Engineering & Construction Corporation and Hyosung, KOREA implemented this component at Contract price of US$ 31,262,644. The Contract price was amended following approval of procurement contract amendment No,2 to use the contingency fund not exceeding USO 454,476 to finance the option work of integrating the SVC and shunt reactor bays into the double busbar system at both Shinyanga and Singida substations respectively. The new Contract price is USO 31,717, 120. The cumulative amount which has been spent under this component up to 30th June 2017 is US$ 31,615,537 (2016: US$ 27,006,537).

Other costs

(i) Environmental and social issues

This was a sub activity of the proposed overhead 400kV double circuit Backbone Transmission Investment Project which dealt with the compensation and environmental mitigation costs. Mis Tanzania Electric Supply Company Limited, TANZANIA implemented this component at a total cost of TZS 23,000,000,000 equivalent to US$ 18,180,000. The cumulative amount which has been spent under this component up to 30th June 2017 is US$ 15,496,000 (2016: US$ 15,454,000)

(ii) TANESCO project management

This was a sub activity of the proposed overhead 400kV double circuit Backbone Transmission Investment Project relating to project management operations costs for Project Implementing Unit (PIU). It included letter of credit charges for the facilities provided by IDA and EDCF, consultant fees for the feasibility study relating to the project, consultant fees for provision of education and awareness to project affected people and travel allowances to the sites by T ANESCO's staff. Mis Tanzania Electric Supply Company Limited, Tanzania financed these costs. The cumulative cost incurred for this component up to 30th June 2017 is US$ 297,395 (2016: US$ 248,395).

16


APPENDICES

Appendix 1: List of potential additional PAPs claims

SIN Claimant's Name District Description of claim

1 Amani Husein Masusu lramba Graves compensation 2 Nakomola Petro Mazuli Graves compensation 3 Serikali ya Kiiiii Kitukutu House compensation and disturbance allowances 4 Nazaino Emanuel Kitalama Crops compensation and disturbance allowances 5 Wilred Musa Kisengo House, graves and crops compensation; disturbance,

transport and accommodation allowances 6 Kitundu Nasolwa Shila Land and graves compensation; disturbance allowance 7 Lutha Kiula Nkango Graves compensation 8 Mkoma Natenowa Charles Graves comoensation 9 Halmashauri ya Kijiji - Kyenyenge House compensation and disturbance allowances

10 Yohana Emael Kitundu Land, house, and crops compensation; disturbance, transport and accommodation allowances

11 Andrea Mdede Maseda Manyoni Graves compensation 12 Emelda Mlaya Fute Graves compensation 13 Ptrick Mkunanowa Mwimba Graves compensation 14 Linda Robert Mnama Graves compensation 15 Josephina James Mlalichi Graves compensation 16 Jumanne Suku Kinanda lkungi House and crops compensation; disturbance, transport

and accommodation allowances 17 ldd Ally Chima Land and crops compensation, and disturbance

allowances 18 Shaban Omary Mohamed Graves compensation 19 Halmashauri va kiiiii lcihuka House comoensation and disturbance allowances 20 Halmashauri ya kijiji -Nkuhi Land compensation and disturbance allowances 21 Jonas Martin Bahali Land compensation and disturbance allowances

Additional Claim (TZS)

240,000 240,000

1,620,000 43,200

5,843,078

1,773,632 480,000 240,000 648,000

10,136,879

240,000 240,000 240,000 480,000 480,000

7,939,766

687,183

1,920,000 5,940,000

10,854,000 15,957,000

17


APPENDICES (CONTINUED)

Appendix 1: List of potential additional PAPs claims (Continued)

SIN Claimant's Name District Description of claim

22 Mariam Mohamed Maenvi Singida Land compensation and disturbance allowances 23 Jafari Athumani Mwangu Municipal Land compensation and disturbance allowances

--24 Juma Mohamed Kiranqa Graves compensation 25 Mohamedi Hamisi Dafi Land comoensation and disturbance allowances 26 Yaasini ldd Hamasi Land, qraves and crops compensation, and disturbance allowances 27 Jumanne Manqwe Masuda Graves compensation 28 Lissu Ally Musa Land and crops compensation, and disturbance allowances 29 Adija Ramadhani Makita Graves comQensation 30 Joeli Saturn Mkvota House comoensation and disturbance allowances 31 Elias Mwanko N'aui Graves compensation 32 Alloyce Mtipa Mtandu House compensation and disturbance allowances 33 Seleman Rajah Graves compensation 34 Athumani Omary Kholo Graves comoensation 35 Alfred Nkuwi Nooi House compensation and disturbance allowances 36 ShabaniNkunga Crops compensation and disturbance allowances 37 Tatu Athumani Chima Graves comoensation 38 Esta Andrea Kiianaa Graves comoensation 39 Vicent Rajabu Mjengi Land, house and crops compensation; and disturbance allowance 40 Hawa Rajabu Ng'amu Land and crops compensation, and disturbance allowance

-~

41 Santorin Daud Malya Crops compensation and disturbance allowances 42 Bakari Hamisi Wima Land, house and crops compensation; and disturbance allowance 43 Wilbard James Mushi Land and house compensation, and disturbance allowance 44 Dorothea Mdanku Francis Land compensation and disturbance allowance 45 Agnes Assey Gasper Land compensation and disturbance allowance 46 Nunu Daudi lsaya Land and house compensation, and disturbance allowance

Additional Claim {TZS)

4,698,000 1,458,000 1,440,000 8,532,000 1,047,000

240,000 2,206,808

480,000 2,834,028

480,000 3,086,100

480,000 240,000 432,000 529,200

1,440,000 960,000

7,194,136 7,715,426

145,800 15,018,391

485,745 1,023,178 1,548,847 2,746,915

18


APPENDICES (CONTINUED)

Appendix 1: List of potential additional PAPs claims (Continued)

S/N Claimant's Name District Description of claim

47 Saidi Jidamabi Manyandeshi lgunga Land and crops compensation, and disturbance allowances 48 Chama cha Mapinduzi Land and crops compensation, and disturbance allowances 49 Masala Nana Handi Land and croos comoensation, and disturbance allowances 50 Kulwa Gibe Mpoya Land compensation and disturbance allowances 51 NQemelo Nyashi Gisamagale Land compensation and disturbance allowances 52 Amos Shimba Masania Land and croos comoensation, and disturbance allowances 53 Emmanuel Mange Nyau Land compensation and disturbance allowances 54 Jumanne Mohamed Mwandu Land comoensation and disturbance allowances 55 Charles Chaba Mwandu Land compensation and disturbance allowances 56 Richard Zenoo Kamwezi Land compensation and disturbance allowances 57 Luteremela Bunzali Land compensation and disturbance allowances 58 Daudi Kasubi Kwinyena House compensation; disturbance, transport and

accommodation allowances

Total in TZS ------------~ ~-

USO Equivalent

Additional Claim (TZS)

10,492,200 3,438,720 8,624,880

100,170 862,380 123,525

1,764,720 89,100

289,170 8,051,400 7,560,000 4,274,417

178,374,99!_

79,989

19

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