Ministers Muhongo and Stubb celebrate Eltel project in Tanzania

Official groundbreaking of Eltel’s electricity project took place in Dar-Es-Salaam on May 24. “Power is economy” was a statement by Mr. Muhongo, Minister for Energy and Minerals. “Development aid is good for this kind of infrastructure projects”, said Mr. Stubb, Minister for Foreign Trade and EU of Finland.Ceremonies at a city site took place where a new substation is to be built in the next few months. Besides the ministers of both countries the whole top management of TANESCO was present. TANESCO is the state owned power company with generation, transmission and distribution systems and infrastructures. 

Mr Deklam Mahiki, Deputy Managing Director of Tanesco, said that ensuring power to the city that is growing at a very fast phase is very important. “Adequacy and reliability of power are very much needed. Good work of Hifab, the consultant, and Eltel is important.” 

Mr Alexander Stubb was on his first visit to Tanzania. His impression of the country and its people had been very positive. He also mentioned that this project is the biggest single aid project for Finland at present. Mr Stubb admitted: “I am a bad constructor myself. It is good that the work here is done by two Finnish companies Eltel and Hifab.” 

Mr Sospeter Muhongo made a reference to the his long personal and national level relationship between Finland and Tanzania, also with a reference to President Ahtisaari and his trainership in Tanzania in the 60’s. “We started to get development aid in the beginning of 60’s but we are still poor.” He also emphasized his trust that the Finnish companies will deliver the project on time. 

TANESCO and the Tanzanian government work together to reduce poverty. Today there are many power failures, unplanned outages and people frustrations. “Power is economy”, Mr. Muhongo said. “There are a lot of transmission problems, the ways of working in maintenance and repair are old. The new system to manage faults will be better.” The country should continue to invest in its energy sector. He also mentioned the energy efficiency and losses that need to be reduced in the next years. 

Eltel’s Power Transmission’s project in Dar-Es-Salaam consist of a SCADA system, substations and cabling. The total value is EUR 23 million and the project has a planned schedule of 24 months with completion in early 2015.

Photo: Ministers Muhongo and Stubb, top management of TANESCO, Ambassador Antila, Mr Antikainen of Hifab and Mr Tynkkynen of Eltel.

For more information:
Hannu Tynkkynen, Senior Vice President, Eltel Group Corporation
Tel: +358 40 311 4503, email:


Elin Otter +46 72 595 46 92