REA Embarks On 12bn/- Worth Project To Facilitate Construction Of Minor Fuel Stations In Rural Areas -

By STAFF REPORTER

RURAL Energy Agency (REA) has embarked on the implementation of the 12bn/- worth project to facilitate the establishment of small –scale fuel (Petrol and Diesel) stations in rural areas of the country.

In the implementation of the key project, REA is rolling out capital loans, ranging from 50m/- to 75m/- towards potential and eligible investors who wish to take part in the project which focuses to extend fuel services in the remote areas of the country.

Speaking here during a press conference,the Director General (DG) of the Rural Energy Agency (REA), Eng. Hassan Saidy said doors are still open for the eligible local investors to dispatch their application at the Agency for the construction of the much-needed fuel refilling stations.

“Deadline for the submission of the applications has been set for this Friday, August 25th, 2023, thus those who wish to take part in the project should work to beat the deadline,” he expressed.

And, he unveiled that the applicants will pass through professional screening in order to find the proper ones who will implement the projects at the desired standards and by reflecting the value for money.

“The money to be borrowed to the eligible applicants will be refunded with a patriotic interest rate of only five percent,” he communicated.

Eng. Saidy infomed that the Agency has decided to venture into the project due to an array of reasons, but chiefly to help contain a spate of poor availability and handling of the potential fuels, Petrol and Diesel, in most rural areas across the country.

“In most of the rural areas diesel and petrol are available at high prices compared to the indicative prices, and above that, the high chemicals-fuel are poorly preserved in gallons, the situation which damages environment and soil,” he added.

Implementation of the project, according to him, will go in sync with a series of other projects that the state-owned Agency has planned to execute in the current fiscal year.

The initiative entails the project for the promotion of use of natural gas and other alternative power across the country in order to discourage vast consumption of charcoal.

He said a total of 18.5bn/- has been set aside to support a great initiative to disseminate natural gas services in the country’s rural areas.

“In implementing the envisaged project, we’re partnering with the Tanzania Petroleum Development Corporation ( TPDC), and the project will benefit the citizens dwelling in some coastal areas, including Mtwara and Dar es Salaam regions ” he unveiled.

Together with that, he expressed that the other project will major into national -wide provision of Liquefied petroleum gas (LPG or LP) cylinder, whereby each region will freely be distributed with at least 2700 cylinder tanks.

“This project, which in its second phase will see provision of a total of 500,000 gas-tanks, among others, targets to heighten use of the environmentally-friendly source of power in the country,” he informed.

Rural Energy Agency (REA) is an autonomous body under the Ministry of Energy and Minerals of the United Republic of Tanzania. Its main role is to promote and facilitate improved access to modern energy services in rural areas of Mainland Tanzania. REA became operational in October 2007.