Croatian company Koncar – Engineering (KET), a subsidiary of Koncar Elektroindustrija, has signed a 3.1 million euro ($3.4 million) contract to reconstruct the 220 kV switchyard at the Kidatu hydro power plant in Tanzania. This is KET’s first project in Tanzania’s electricity transmission and distribution sector. The contract was signed on a turnkey basis with Tanzanian power company TANESCO.
Modernization and Replacement of Equipment
KET will modernize the facility at one of Tanzania’s most important power plants and one of the largest in the region. The works will also include the installation of Končar’s SCADA system, which is expected to improve the efficiency of the power plant. The project is scheduled to be completed in 12 months.
Successful Completion of Previous Projects
KET has already carried out the rehabilitation of one generator at HPP Kidatu in previous years, and the rehabilitation of a second one is underway, with an offer for a third generator currently being prepared. The main subcontractor for the works is Telenerg – Engineering, a Croatian power engineering company that KET acquired at the end of last year.
Positive Impact on the Company’s Shares
Following the announcement of the contract, Koncar Elektroindustrija’s shares traded 0.78% higher at 130 euro intraday on Friday on the Zagreb bourse. The contract is expected to have a positive impact on the company’s finances, as it increases their presence in the African market and opens up opportunities for further contracts in the region.
In overall, the recent contract secured by KET is a significant achievement for the Croatian company. With this new project in Tanzania’s electricity transmission and distribution sector, KET can expand its reach in the African market and open up further opportunities in the region. The modernization of the Kidatu hydro power plant will not only improve the plant’s efficiency but also enhance KET’s reputation as a reliable and competent service provider.
