The Energy and Water Utilities Regulatory Authority (EWURA) has drafted a model agreement for guiding all investments in the energy sector. According to the Director General of EWURA, Mr Felix Ngamlagosi, main objective of the model agreement is to create standard contracts for all investors in the energy sector. He added, “As a country, we ought to have these indicative agreements since many investors come up with their own contracts and this makes negotiations very length.”
“When negotiations take long, the costs of the projects increase and a lot of time is wasted. Tanesco has faced a number of challenges when dealing with contracts drafted by investors.”
Various investors mainly from foreign countries, come with their own intents and thus the need for indicative agreement to regulate the sector, he added, with the expectation that with the help of this model, the state-owned power utility Tanesco will be able to efficiently negotiate contracts with independent power producers wishing to invest in power generation. According to Ngamlagosi, the decreasing prices of oil in the world as well as in local markets will also lead to reduced water tariffs since costs of pumping water using fuel would fall.
“When negotiations take long, the costs of the projects increase and a lot of time is wasted. Tanesco has faced a number of challenges when dealing with contracts drafted by investors.”
Various investors mainly from foreign countries, come with their own intents and thus the need for indicative agreement to regulate the sector, he added, with the expectation that with the help of this model, the state-owned power utility Tanesco will be able to efficiently negotiate contracts with independent power producers wishing to invest in power generation. According to Ngamlagosi, the decreasing prices of oil in the world as well as in local markets will also lead to reduced water tariffs since costs of pumping water using fuel would fall.