Songas pays TZS 11 billion dividend to government
On 29 November 2017, Songas Limited, held a dividend presentation event at the Songas Ubungo Power Plant in Dar es Salaam. This was the first time Songas had hosted this event which was well attended by the Tanzanian Government’s Treasury Registrar, shareholders representatives, Songas staff and local media.
Whilst Globeleq is a majority owner of Songas, the company is also owned by Tanzania Petroleum Development Corporation (TPDC), Tanzania Electric Supply Company Limited (TANESCO) and Tanzania Development Finance Company Limited (TDFL).
Songas Limited Managing Director, Nigel Whittaker, said TANESCO will receive TZS 2.9billion (approx. US$ 1.29 billion) while TPDC will receive TZS 8.7 billion (approx. US$ 3.8 billion); both amounts being net of withholding tax. The amounts are determined by each entity’s shareholding in Songas.
“Since 2004, Songas has been helping to power Tanzania’s industrialisation by providing approximately 20% of reliable and cost-effective electricity to the national grid, in addition to supplying natural gas to various manufacturing operations in Dar es Salaam,” said Mr. Whittaker during the cheque handover to the Treasury Registrar, Dr Oswald Mashindano, in Dar es Salaam today. “Songas offers an alternative and affordable form of energy and positions the company as an important regional energy producer.”
Songas is currently the cheapest thermal generator of electricity in East Africa. By using domestic gas instead of imported fuel, TPDC estimates that since Songas began its operations in 2004, it has saved the Tanzanian economy more than US$ 5 billion.
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