Sao Tome government buying power station

26 June 2006

Sao Tome and Principe, 26 June – The government of Sao Tome and Principe is to buy a new thermal power station and will invest nearly euros 700,000 in the rehabilitation of energy infrastructures in an effort to tackle a shortfall in production of electricity, officials have said.

Negotiations for the purchase of the new generating plant, which will run on oil and gas, will be concluded in coming weeks in a short-term solution to Sao Tome’s energy shortages that will also allow power tariffs to eventually be reduced, the archipelago’s energy minister has said.

The 20 Mwatt plant will run on oil to begin with and gas will later by used, given the lower cost of this fuel, said the minister, adding that state power and water utility EMAE would have to initially revise its electricity charges in line with increasing fuel costs.

The Sao Tome government has also authorized investment of euros 700,000 to repair three generators at the country’s sole thermal power plant, said the minister, adding that the energy shortage would only be resolved when the Contador hydroelectric dam comes back on stream soon after months of maintenance repairs. (macauhub)