Electricity Utility Management Contract in Africa: Lessons and Experience from the Tanesco-NETGroup Solutions Management Contract in Tanzania, 2002-06

This paper reviews the context in which the management contract for Tanesco took place, the goals of the contract, and the evolution of key performance indicators under the contract. The paper draws the key lessons of this experience which include successful outcomes from this type of contracts depend on broader power sector reform, effective regulation, reducing information asymmetry between the government and the contractor, adequate cost-effective generation planning ad procurement, and contract incentives need to reflect not only financial and technical goals but also customer service and access.