25 July 2006 - Wärtsilä Corporation has signed and confirmed an EPC (engineering, procurement and construction) contract for the delivery of a 100 MWe gas fired power generating plant at Ubungo in Dar es Salaam, United Republic of Tanzania.

The customer is the public utility Tanzania Electric Supply Company Limited (TANESCO) and the contract is valued at approximately €57m ($72m).

Wärtsilä will equip the plant with twelve 20-cylinder 34SG generating sets, running on natural gas. The plant is scheduled to start producing power for the national grid in May 2007.

The plant will use natural gas from Songo Songo Island and will help in reducing the current power problems facing Tanzania by meeting about half of the electricity demand in Dar es Salaam.

"Africa is a growing power plant market for Wärtsilä. The interest shown towards our gas power plants is of particular significance. This order for a gas power plant in Tanzania is a major opportunity alongside traditional oil power plant projects," says Christoph Vitzthum, Group Vice President, Wärtsilä Power Plants.

Wärtsilä 34SG gas engines are proving popular for industrial and local power plants in many countries having supplies of natural gas. With unit power outputs up to 9 MW at 750 rpm, they are the most powerful gas engines on the market today and they are recognised as cost-effective alternatives to gas turbines.