1. 0 Introduction
1. 1 Background
The Directorate of Corporate Planning and Research (DCPR) which is herein after referred as a " Business Unit" is made up of two departments namely, Corporate Planning, and Research and Development. The principle purpose of the DCPR is to guide the company to achieve its mission. The company, having made its targets to achieve its objectives, must make sure that it is moving in the right direction by taking appropriate strategies and action plans which are executable. To accomplish its task the business unit depends on its manpower made up of Engineers, Economists, Statisticians, Accountants, Hydrologists, Geologists, Surveyors and other scientists.
To augment expertise deficiency, the unit does utilise consultancy services from outside the company. This business plan has been prepared after closely reviewing the last year's business plan covering the period 2000-2002. 1. 2 Mission The Corporate Mission is "to generate, transmit, distribute and supply electricity in the most, economical, safe, reliable and environmentally friendly manner." The Business Unit's Mission is to develop sound power system plan and undertake studies, research and environmental activities, to ensure that TANESCO meets its objectives as given in the Corporate Mission. As this is a review of the previous business plans, it was found that the mission statement is still valid. 1.
3 General Objectives of the Business Unit With the establishment of the Corporate Plan as a management tool in the Company, the unit's first major objective is to analyse the business environment, identify the strategic issues, and monitor the business planning and formulation of the Corporate Business Plan. The second major objective is undertake studies, research and environmental activities aimed at improving the company's performance, efficiency and cost effectiveness through the development of appropriate technologies, design specifications and applied methods for the generation, transmission and distribution systems. Specific objectives of the Business Unit: - Develop, guide and monitor the Corporate Business plan - Formulate and monitor the company's corporate strategic plans in accordance with acceptable commercial principles and taking into account the national energy policies as may be revised from time to time - Set effective and where possible quantitative Company performance targets - Identify long term internal and external factors and their potential effect on the company and appraise the Management on the Company's Strengths, Weaknesses, Opportunities and Threats (SWOT) - Establish a sound management information system and planning database for the effective monitoring of the Corporate Plans - Keep the company at all times aware of emergence of new technologies and other advances relevant to power production, transmission, distribution and suggest appropriate action to be taken as and when necessary as a way of improving the company's performance and cost effectiveness and efficiency. - To develop, monitor and update the company's power system master plan and advise management accordingly - Ensure projects are evaluated to adequately cover technical, environmental and socio-economic aspects and in accordance with set criteria and guidelines.
- Provide technical support (dam, reservoir monitoring and water management etc. ) to other business unit - Develop, institute and implement Environmental Management System (EMS) within the company - Provide expert services to external clients 2. 0 Review of the SWOT analysis. 2.
1 Strength The Directorate has over 10 years experience in planning and research activities. The business unit has been able to retain its qualified and experienced personnel. The availability of equipment was further enhanced by acquisition of new field investigation equipment, computers and software. Under the Master Plan Study, provision has been made to train counterpart staff and other members of planning staff on load forecasting techniques, hydrological and reservoir simulation analyses, system planning principles and criteria, economic / financial analyses and any other areas necessary to achieve relevant technology transfer to local personnel. The training will further build our internal capacity in power system planning. Our staffs attending have attended workshops and seminars in their relevant fields, thus improving their professional capabilities.
2. 2 Weakness A number of weaknesses that prevailed from the previous business plans still exist. These include: - Inadequate financial resources due to several years of load shedding and inefficient revenue collection from some consumers. - Inadequate office facilities and accommodation - Lack of appropriate incentive package. - Lack of clear company policy in areas of human resources development.
- Poor data quality from various sources within and from outside the company - Absence of reliable management information system for sound decision-making - Lack of transparency, proper directives, regulations and work procedures. - Inadequate training in the fields of tariff analysis and setting, PPA contract negotiations and commercial operations. 2. 3 Opportunities. The existing opportunities were not fully exploited. The donor community support that was previously seen as an opportunity has of recent been identified as a threat due to stringent terms and conditions.
The government support is also diminishing due to budgetary constraints and limited resources. However, there are other opportunities, which the company could exploit, such as: - - Ongoing Power Sector reforms to allow the sector to operate commercially with the aim of setting appropriate tariffs to recover costs of supply. - Privatisation of non-core businesses of the company - Participation of IPP to augment installed power capacity in TANESCO power systems - The formation of the East African Co-operation which may facilitate power export / import to / from neighbouring countries. - Support from the government and donor community for institutions that wish to implement environment measures.
2. 4 Threats. Threats to the company's existence include the following: - Diminishing donor community financial support for external funding of TANESCO projects - Continued Government Control of TANESCO including commercial decision affecting the entire operations - Ongoing Power Sector reforms to restructure / privatize TANESCO and the emergence of other players in power generation - Poorly negotiated IPP contracts and Power Purchase Agreements - The state of suppressed demand in TANESCO's power systems throughout the country due to insufficient water in the reservoirs and / or poor conditions of generating units coupled with shortage of generating capacity - Tarnished image of TANESCO due to poor services to its customers and the general public. - With emergence of new companies and consulting firms providing better packages, Tanesco qualified and experienced staff may move across for greener pasture. - Some of the company activities which are sources of negative environmental impacts; such as thermal generation and construction works for power plants transmission and distribution lines.
3. 0 PERFORMANCE REVIEW OF 2001 BUSINESS PLAN In reviewing the 2001 business plan careful review of the strategies and action plan was undertaken. Strategies were directed towards the key performance areas as identified from the Corporate Plan, i. e. - Business focus - Sufficiency optimisation - Cost effectiveness - Customer focus - Culture change/Management style/Team Working. The review referred to activities such as studies, which are being co-ordinated by the company and assessment of the implementation of the action plans.
3. 1 Power Sector Master Plan study. The Power Sector Master Plan Study covering the period 1998-2025 was finalised in 1999. The least cost generation expansion plan considers two options in the medium term to long term. One of the salient features of the findings is that in both options, Ruhudji hydro power project comes in year 2010.
The Zambia-Tanzania Interconnection comes in the year 2004 if power is available at least less than US$ 0. 047 per kWh and year 2014 if power is available at US$ 0. 05/kWh or more. Otherwise, natural gas fired generation (SongoSongo gas) is competitive before Ruhudji Hydro project comes on stream in year 2010. The coal fired generation from Mchuchuma was found to be relative uneconomic due to high capital costs, high fuel (coal) price (estimated at US$35/tonne) and high transmission costs required to transmit the power from Mchuchuma to the main load area in the grid system. The 2000 Master Plan update covering the period 2000-2025 is in its final stages of completion.
Two significant new issues have arisen in connection with the Lower Kihansi project. They are the bypass flow requirements for environmental consideration and addition of two units. In addition the World Bank wants SongoSongo Project not to be treated as committed project. Preliminary results indicate that the bypass flow has significant impact on grid generation capability. They farther indicate that Lower Kihansi units 4 and 5 are not cost effective. 3.
2 Status of potential generation sources. 3. 2. 1 Songo Songo Gas-to-Power Project This project involves development of gas wells and gas processing facilities at Songo Songo, laying of gas pipeline from Songo Songo to Dar Es Salaam and gas supply to Ubu ngo gas turbines, the W azo Hill cement plant and villages / towns along the pipeline route. Finalisation of project documents is now in progress in preparation for financial closure in the year 2001. 3.
2. 2 Mnazi Bay Gas-to-Electricity Project This project consists of laying a pipeline from Mnazi Bay to Mtwara Township to feed a new 12 MW thermal power station. Also to be covered under the project is the rehabilitation of distribution and transmission lines. The project will be undertaken in phases. The first phase will include the construction of new thermal facility at Mtwara and construction of a new 66 kV transmission line to Lindi and rehabilitating the distribution networks in Lindi and Mtwara. A Consortium consisting of Tul low Oil and Cinergy was selected early this year to develop the gas well, construct the pipeline and the new power plant, construct the transmission line and take over operations in the area.
Negotiations with the government and the private developer are still going on and another round of negotiations is planned for early 2001. 3. 2. 3 Zambia-Tanzania Interconnection Project This project is aimed at interconnecting the electricity grids of Zambia and Tanzania to enable utilisation of excess power from the Zambian system. A report prepared by TANESCO, Z ESCO and ESKOM experts recommended construction of a 670 km of 33 OkV-transmission line from Pensulo in Zambia to Mbeya in Tanzania and 330/22 OkV step-down facilities. This project has featured in the least cost expansion plan with its timing depending on the final cost of the power delivered at Mbeya.
3. 3 Research and Development activities 3. 3. 1 Environmental issues Efforts were initiated by the business unit to implement an Environmental Management System (EMS) for TANESCO. The Terms of Reference for the EMS were prepared and draft proposal on development of EMS using internal resources was submitted to management for approval. The management has already granted approval.
The environmental monitoring programme for Pangani Falls Power Project continues with co-ordination of Pangani Water Basin Office. 3. 3. 2 Rural electrification and Mini hydro studies To increase access of electricity to a larger segment of the population especially those in rural areas, the unit conducted a number of studies to identify mini hydro potentials around the country.
Pilot studies are being carried out to establish rural power co-operatives as one of the ways to speed up rural electrification. U rambo and Mb inga are such pilot areas. Ka sulu and Ki bondo have been added to the list. 3. 3. 4 Studies and monitoring activities The unit provided technique support to other business units in the area of dam safety and surveillance, tower foundation monitoring, sediment survey and structure monitoring.
4. 0 BUSINESS PLAN 2000 4. 1 Assumptions and critical issues 4. 1. 1 Assumptions - The financial resources are made available as requested in the budget. - The IDA credit under Songosongo project will be available.
- The restructuring, retrenchment and privatisation of TANESCO do not have a major impact on responsibilities of the existing business unit's structure. 4. 1. 2 Critical issues - Restructuring and Privatisation of TANESCO - Monitoring strategic plan - Human Resource Development - Information Technology - Environment management - Access to electricity by a larger segment of the population 4. 2 Planned activities for 2000 The Directorate is charged on an ongoing basis with the responsibility of co-ordinating and advising management on issues pertaining to corporate planning, power systems performance reviews, preparation of future expansion plans on existing power systems and research related activities.
Issues related to environment, safety of facilities such as dams, access to electricity to more people especially in rural areas are the challenges being taken by the business unit. The activities of the unit have been grouped according to its two departments i. e Corporate Planning and Research Development. The following activities are at various stages of implementation: 4. 2.
1 Corporate Planning 4. 2. 1. 1 Preparation of the Corporate Plan The company launched its first Corporate Plan in 1996, and was later produced in 1997. Subsequent corporate plans will be carried out on annual basis. The main objective of the plan is to collectively assess and manage risks in aspiring to achieve organisational long-term goals.
It helps management to assess the company capacity to survive shocks, to adapt to sudden change, and to capture new opportunities. The Directorate has been assisting management to define its mission and vision, corporate goals and continuously monitors internal and external factors, which may affect the company. It continuously appraises corporate strengths, weaknesses, threats and risks. Monitoring and evaluation of the corporate plan is part of the process. Year 2003 Corporate Plan preparations are going on and the Business Units are assembling their Business Plans to be submitted to the Directorate by December, 2001. 4.
2. 1. 2 System Performance Review This is an ongoing activity and covers presentation of information (including statistical and comparative data) on the electrical power sector and assessment of impact of system performance of TANESCO's future development activities. Additionally most of the data are used as input to master plan studies and other studies such as feasibility studies, load forecasts, system losses monitoring, system generating capacity and hydrological conditions monitoring, impact of load shedding and its implication etc. A number of problems such as incomplete, inconsistent and non-availability of data have been encountered in this exercise. The intention is to utilise available monthly data to monitor operational performance against the set target.
4. 2. 1. 3 Update of the Power Sector Master Plan To keep abreast with changes in the power system and the economy in general, the master plan will be updated every year. The load forecast and the generation plan will be updated.
The main activities will be to carry out a power market survey, update hydrological data, costs, and operational status of the power plants. 4. 2. 2. Research and development Research and development department is involved in a range of activities geared towards ensuring that the company's operations are environmentally safe. The other activities is as given below while the details of the activities to be undertaken is as given in Appendix B attached.
4. 2. 2. 1 Environment Management System (EMS) The EMS will be established and implemented to include formulation of environment policy and guidelines training of key personnel. Also included is the creation of awareness at all levels and strengthening of the environmental unit at TANESCO.
With the EMS in place it is expected that the company activities will be implemented in environmentally friendly manner. 4. 2. 2. 2 Studies and monitoring activities Water is a major source of electricity generated in our system. Monitoring of hydrology is an important task to ensure sustainability of power generation.
Identifying mini hydro potential as sources of rural power supply is a task, which needs attention if rural development is to be given priority. Monitoring of existing dam structures is important to ensure their safety. 4. 2. 2. 3 Access to Electricity.
The country population with access to electricity is less than 10% of the total. Efforts to increase access have encompassed rural power co-operatives and rural electrification strategy. More studies on rural power co-operatives will be conducted. These will be efforts to establish the impact of the strategies and open up new areas when necessary. 4. 2.
2. 4 Demand side management Energy conservation is essential to cut energy cost for residential commercial and industrial energy users. It also helps to control sharp peaks, which may be costly to satisfy. There will be more studies conducted for consumers who need the services. 4.
3 Strategies. To be able to carry out the above listed activities effectively, the business unit has adopted strategies centered on four key areas of human resources, research and development, technology and customer service. 4. 3.
1 Human resources. - To plan our personnel requirements make sure that we have qualified personnel. - Retain and improve the existing manpower through training and periodically evaluate their performance. 4. 3. 2 Research and Development - Increase research in areas that can lead to cost saving, generation investments time factor and areas to invest, for the benefit of the company.
- Establish policies related to new research findings. 4. 3. 3 Technology - Look into existing technology and innovations likely to occur that will affect our customer service and other operations. 4. 3.
4 Customer Service - To ensure that our customer service is improving. 4. 3. 5 Environmental Awareness - To promote environmental awareness in all of our operations 4. 4 Action Plans 4. 4.
1 Human resources - Check on the effectiveness of the pay system to see if it is competitive. - Evaluate the performance of each staff - Prepare a selection or recruitment criteria - Check on the effectiveness of each training program attended by the staff. - Prepare manning level requirements for the directorate. - Lease with DPA on devising suitable performance- based incentive Scheme 4. 4.
2 Research and Development - Increase the level of Research and Development by putting in more resources in this area. 4. 4. 3 Technology - Compare the technology we are using against the available technology and that used by other utilities.
- Acquire, adopt and apply appropriate technology from other countries. 4. 4. 4 Customer Service - Check on the customers preference /rating on our service. - Look on the expected government regulations that may present either threats or opportunities. - Check on the economic trends likely to affect our customer service.
4. 4. 5 Environmental Awareness Implement an Environment Management System for TANESCO Strengthen Environment unit in DCPR. The detailed action plan is herewith attached as appendix C 5.
0 RESPONSIBILITY The action plan shows the hierarchy of responsibility in executing the business plans and the actual activities that are envisaged to take place during year 2001. Appendix C and presents action plans, costs, responsibility and the time frame for activities. 6. 0 Conclusion The main task of the unit will be to monitor performance according to the strategic plan.
Marketing, environment and access to electricity are all critical to achieving the corporate mission. The action plans prepared will go all the way to achieve the desired objectives.