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Tanzania Act or statute

Parliament of Tanzania

The Rural Energy Act, 2005

This section lists the short title, commencement, application, and interpretation headings, and introduces Part II on Principles of Rural Energy Development. This section is a heading for principl…

administrative conditionsagency administrationagency functionsagency mandateagency personnel liabilityagreement administrationannual accountsannual reportingapplication processingappointmentsapproval of paymentsaudited accountsbidding documentsboard authorityboard establishmentboard governanceboard meetingsboard membershipboard powersboard procedurebudget allocationbudgetingchairmanshipcommissioningcommittee formationcontract termscontractsdecision-makingdelegationdelegation of authoritydeveloper selectiondocument executioneligibilityemployment termsenergyenergy grantsenergy policyenergy servicesexternal auditfinancial assistancefinancial disbursementfinancial reportingfinancial yearfund administrationfund authorizationfund managementfundinggovernancegrant administrationgrant allocationgrant calculationgrant compliancegrant contract negotiationgrant contractsgrant disbursementgrant estimationgrant paymentsgrant supportgrantsgrants administrationinstitutional definitionsleviesBusiness registrationmeetingsnotice requirementsoperational supportpayment approvalpaymentspolicy formulationproject evaluationproject financingproject fundingproject monitoringproject paymentsproject supervisionproject verificationpublic administrationpublic noticespublic procurementpublic-private facilitationrecord keepingrecords managementregional allocationregulatory administrationregulatory guidanceremunerationrenewable energyreportingrural developmentrural energyrural energy developmentrural energy service provisionrural energy servicesservice procurementsignatory controlsstaffingtechnical assistancetender evaluationtender requirementstenderingtermination
Jurisdiction
Tanzania
Structure
68 provisions
Citation
The Rural Energy Act, 2005
Dates
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01

Purpose and legislative effect

“This section lists the short title, commencement, application, and interpretation headings, and introduces Part II on Principles of Rural Energy Development.”

This section lists the short title, commencement, application, and interpretation headings, and introduces Part II on Principles of Rural Energy Development. This section is a heading for principles of rural energy development, the Minister’s role, and the establishment of the Rural Energy Board. This section is about the establishment of the Board, its composition, criteria and appointment procedure, and the tenure of office of Board members. This text is a section heading about the Board’s meetings, procedures, powers, functions, autonomy, accountability, and the establishment of the Agency. This text is a section heading listing the Agency’s establishment, objectives, and functions, and introducing Part V on the Rural Energy Fund.

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Section 3

This section lists the short title, commencement, application, and interpretation headings, and introduces Part II on Principles of Rural Energy Development.

Section 3

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Showing 68 of 68 provisions

Provision 63Commencement 2Short titleAmendment
§ 3Section 3Short title

This section lists the short title, commencement, application, and interpretation headings, and introduces Part II on Principles of Rural Energy Development.

3. Short title and commencement. Application. Interpretation. PART II P r i n c i p l e s o f R u r a l E n e r g y D e v e l o p m e n t
Section 3Verify source

Part

PART II

§ 5Section 5Provision

This section is a heading for principles of rural energy development, the Minister’s role, and the establishment of the Rural Energy Board.

5. Principles o f Rural Energy Development. Role o f the Minister PART III E s t a b l i s h m e n t o f t h e R u r a l E n e r g y b o a r d
Section 5Verify source
§ 4Section 4Provision

This section sets out principles for rural energy development, emphasizing modern energy supply, private and community involvement, and Government acting mainly as a facilitator.

4. that- Principles o f Rural Energy Develop­ ment (a) modern energy supply to rural areas promotes growth in economic production and productivity as well as social welfare; (b) sustainable development shall be achieved when modern energy services in rural areas are promoted, facilitated and supported through private and community initiative and involvement; (c) the role of Government in rural energy service provision is that of a facilitator o f activities and investments made by private and community entities; (d) the fulfilment of Government’s role shall be best managed through an institution that is independent of, but accountable to, the central organs of Government; 481 No. 8 Rural Energy 2005 (e) the public institution designed to facilitate rural energy service provision shall have a small core administrative capacity, and shall rely on the technical and financial capacity of qualified private sector entities; and (f) facilitation of rural energy service provision shall take the form o f financial support for the capital costs of investments, technical assistance to project preparation, training and other forms of capacity building. Role o f the Minister
Section 4Verify source
§ 5(l) Subject to other relevant written laws of the UnitedAmendment

The Minister must perform specified duties for rural Mainland Tanzania energy policy, may appoint the Board, may consult and execute agreements to fund the Fund, may amend schedules, and may make regulations for the Act.

5.-(l) Subject to other relevant written laws of the United Republic, the duties of the Minister shall be: (a) to determine and ensure the formulation, co-ordination and application of, the national energy policy as relates to rural Mainland Tanzania; (b) to a p p o in t the Board in accordance with this Act; and (c) to provide guidance of a policy nature to the Board. (2) The Minister may, in consultation with the Minister of Finance, execute agreements for the purpose of providing resources to the Fund as provided for in sections 19 and 20 of this Act. (3) The Minister may amend the First and Second Schedules to this Act on the basis of recommendations made to him by the Board. (4) The Minister may make regulations for the carrying into effect the objects of this Act and for any matter or thing which by this Act is to be or may be provided for by regulations. PART III E s t a b l is h m e n t o f t h e R u r a l E n e r g y B o a r d The establish­ ment o f the Board
Section 5Verify source

Part

PART III

§ 9Section 9Provision

This section is about the establishment of the Board, its composition, criteria and appointment procedure, and the tenure of office of Board members.

9. Establishment of the Board. Composition of the Board. Criteria and Appointment Procedure. Tenure of Office o f Board Members. 477 No. 8 Rural Energy 2005
Section 9Verify source
§ 13Section 13Provision

This text is a section heading about the Board’s meetings, procedures, powers, functions, autonomy, accountability, and the establishment of the Agency.

13. Meetings and Procedures of the Board. Powers and Functions of the Board. Board’s Autonomy. Accountability o f the Board. PART IV E s t a b l i s h m e n t .o f t h e A g e n c y
Section 13Verify source
§ 6(l) There is hereby established a Board to be known as theProvision

A Rural Energy Board is established, and it must work to expand access to modern energy services in rural areas.

6.-(l) There is hereby established a Board to be known as the Rural Energy Board whose objective shall be to promote rural socio­ economic development by facilitating extended access to modern energy services for the productive economic uses, health and education, clean water, civil security and domestic applications. 482 No. 8 Rural Energy’ 2005 (2) The Board shall strive to achieve the objective stipulated in subsection (1) above by:- (a) supporting the provision of modern energy services through projects that are developed by private, public, entities, co-operatives and local community organisations; (b) facilitating the provision of technical assistance to qualified developers that contributes to the provision of modern energy services in rural areas; (c) allocating grants in an efficient and competitive manner, to subsidize the capital c o sts o f p rojects, taking into consideration a project’s social and economic benefits, regional equity in the allocation of funding resources, and the project’s sustainability.
Section 6Verify source
§ 7(l) The Board shall consist of the following membersProvision

The Board must consist of the listed members, and a member appointed under subsection (1)(g) has no voting power.

7.-(l) The Board shall consist of the following members- (a) a representative from the Ministry responsible for energy; Composi­ tion o f the Board (b) a representative from the Ministry of F in a n c e ; (c) a representative from the Ministry responsible for regional administration and local government; (d) a representative of the Private Sector; (e) a representative of the Tanzanian Bankers’ Association; (f) a representative of a civic society; (g) a representative of the Development Partners; (h) a representative of consumers. (2) There shall be no alternate members. (3) A member appointed under subsection (l)(g) shall have no voting power. 483 No, 8 Rural Energy 2005 Criteria and Appoint­ ment Procedure
Section 7Verify source
§ 8(l) Members of the Board shallProvision

Board members must meet suitability and conflict-of-interest requirements, and the Minister has specified appointment steps for board representatives and the Chair.

8.-(l) Members of the Board shall- (a) have a strong interest in making the activities o f the Board successful; (b) be able to mobilise institutional and public support for the activities o f the Board and Fund and have competence in rural development issues; (c) have autonomy from institutional or corporate influence; and (d) not have financial interests in any project supported by the Board. (2) The procedure for appointment of members o f the Board shall provide that- (a) the M inister shall invite recognized organizations and participants in the private and civic sectors to nominate their respective representative and the Minister shall select one each o f the nominees to be the private and respectively civic sectors representative; (b) the Development Partners representative shall be appointed from amongst the Development Partners active in the energy sector in Mainland Tanzania; and (c) the Minister shall invite recognised organisations in civil society with an interest in consumer protection to nominate the consumer representative on the Board, and the Minister shall select one such nom inee to be the consum er representative. (3) The Chairman o f the Board shall be appointed by the Minister after receiving recommendations from the Board. 484 2005 Tenure of office of Board Members No. 8 Rural Energy
Section 8Verify source
§ 9(1) A member of the Board shall hold officeOffence

Board members serve on the stated appointment terms, with an initial term up to 3 years and one re-appointment term up to 3 years. The Minister may suspend or terminate a member’s appointment on specified grounds.

9.-(1) A member of the Board shall hold office- (a) on such terms and conditions as may be specified in the instrument of his appointment and shall, in the first instance be for a period not exceeding three years; and (b) shall be eligible for re-appointment only for a subsequent period not exceeding three years. (2) The provisions of subsection (l)(a) and (b) notwithstanding, nothing shall preclude m em bers w ho hold office in their organisations beyond six years, from maintaining membership or being re-appointed to the Board. (3) The Minister may terminate or suspend the appointment of a member, including the Chairman- (a) for the member’s physical or mental inability to perform the functions o f his office; (b) for gross misbehaviour or incompetence; (c) if the member is convicted of a criminal offence; (d) if the member, in any particular case, fails to comply with the provisions of the Second Schedule to this Act relating to the disclosure of interest; or (e) if the member is declared bankrupt.
Section 9Verify source
§ 10(1) The provisions of the Second Schedule to this Act shallProvision

The Board has broad powers over its meetings, the Fund, and the Agency, and may co-opt people, delegate some functions, and create committees. Co-opted persons cannot vote, and Board members are entitled to honoraria and allowances approved by the Minister.

10.-(1) The provisions of the Second Schedule to this Act shall apply to the meetings of the Board and other matters provided for in that Schedule. Meetings and Procedural o f the Board (2) The Board may co-opt any person to participate in its deliberations, but a person so co-opted shall have no right to vote. (3) Members o f the Board shall be entitled to payment of honoraria and sitting and other allowances determined by the Board and approved by the Minister; and which shall be funded from the operational budget of the Agency. 485 No. 8 Rural Energy 2005 Powers and Functions o f the Board (4) The Board shall appoint the Director General to be Secretary to the Board who shall be responsible for arranging the business proceedings of the Board and such other duties as the Board may direct. ll.-(l) The Board shall— (a) direct the Director General to furnish it with any information, reports or other documents which the Board considers necessary for the performance of its functions; (b) review and approve reports prepared by the Agency, including the Annual Report of the Agency, and the annual and medium- term work plan and budget of the Agency, as referred to in Section 27; (c) approve criteria for eligibility of a developer of a project to apply for grants from the Fund; (d) approve guidelines for the Agency to contract technical assistance, training and promotional support to qualified developers; (e) execute grant contracts with qualified developers in accordance with the Second Schedule to this Act. (2) The Board shall be the governing body for the Fund and in that respect shall— (a) appoint a Trust Agent who shall be responsible for the administration of the Fund; (b) approve criteria for the eligibility of developers of projects to receive grants from the Fund; (c) approve and set terms and conditions for grants from the Fund to developers; (d) establish procedures for evaluation of projects eligible for grants from the Fund; (e) establish model documents for application and approval for grants from the Fund; 486 No. 8 Rural Energy 2005 (f) approve or reject applications from qualified developers seeking grants from the Fund, and determine the level of grants to be granted; (g) approve the annual budget of the Fund, including provisions for the operating expenses of the Agency; and (h) appoint the auditor of the Fund and approve the auditor’s reports. (3) The Board shall be the governing body for the Agency and in that respect shall— (a) approve the management, performance and operational policies of the Agency; (b) approve the annual and medium-term work plan and budget of the Agency; (c) approve general terms and conditions of employment for employees to the Agency; (d) direct the Director General to submit reports and accounts as may be reasonably required by the Board; (e) monitor the management and performance of the Agency and its staff; and (f) appoint the auditor of the Agency and approve the auditor’s reports. (4) The Board may delegate to any of its members its power and authority to carry out on its behalf such functions as the Board may determine provided that grant allocation shall not be subject of such delegation with the exception provided for in paragraph 7 of the First Schedule to this Act. (5) The Board may from time to time establish such number of committees to assist it to carry out its functions. 487 No. 8 B oard’s Autonomy Rural Energy 2005
Section 10Verify source
§ 12(1) The Minister may, after consultation with the Board,Provision

The Minister may give policy guidance to the Board after consulting it, and the Board must give that guidance due consideration.

12.-(1) The Minister may, after consultation with the Board, give guidance of a policy nature to the Board regarding the execution o f its functions, and it shall be the duty of the Board to give due consideration to such guidance. (2) The Board shall be independent in the performance o f its duties and functions, within the mandate provided for by this Act. A c c o u n ta ­ bility o f the Board
Section 12Verify source
§ 13(1) The Board shall, within three months after the close ofProvision

The Board must send an annual report to the Minister within three months after each financial year ends, and the Minister must lay copies before the National Assembly within two months of receipt or at its next meeting.

13.-(1) The Board shall, within three months after the close of each financial year, submit an annual report to the Minister, including an audited report on the operating expenditure incurred by the Board and Agency, revenues collected, grants approved and grant payments disbursed by the Fund. (2) The Minister shall cause copies of each annual report to be laid before the National Assembly within two months after he has received them or at the next meeting of the National Assembly. (3) The Board shall cause to be kept and maintained a full record indicating- (a) the names and number of persons in respect of grants awarded; (b) the number, size and purpose of grants awarded; and (c) where relevant, the period for which the grant is awarded. PART IV E s t a b l i s h m e n t o f t h e A g e n c y Establish­ ment of the Agency
Section 13Verify source

Part

PART IV

§ 16Section 16Provision

This text is a section heading listing the Agency’s establishment, objectives, and functions, and introducing Part V on the Rural Energy Fund.

16. Establishment of the Agency. Obj ecti ves o f the Agency. Functions o f the Agency. PART V . . . E s t a b l i s h m e n t o f t h e R u r a l E n e r g y F u n d
Section 16Verify source
§ 14(1) There is hereby established an agency to be known as theProvision

This section establishes the Rural Energy Agency and gives it corporate powers, including suing and being sued, borrowing money, and dealing with property.

14.-(1) There is hereby established an agency to be known as the Rural Energy Agency with the purpose of facilitating the provision o f modem energy services in rural areas o f Mainland Tanzania. (2) The Agency shall be a body corporate with perpetual succession and a common seal and shall be capable of suing and being sued in its corporate name and may borrow money, 488 No. 8 Rural Energy 2005 acquire and dispose of property and do all such other things as a body corporate may lawfully do. (3) The Agency shall be governed by a Board o f Directors otherwise known as the Rural Energy Board.
Section 14Verify source
§ 15The objective of the Agency shall be toProvision

The Agency must implement the Board’s strategies and decisions, and help provide technical assistance, research and development, training, and other capacity building for qualified developers.

15. The objective of the Agency shall be to- (a) implement the Board’s strategies and decisions in fulfilling the mandate of the Board; (b) facilitate provision o f technical assistance, research and developm ent, training and other forms o f capacity building to qualified developers by suitably qualified experts related to the planning and preparation o f a project prior to an application for a grant.
Section 15Verify source
§ 16(1) The Agency shallProvision

The Agency must carry out the listed administrative, financial, project-selection, grant, and environmental coordination functions for the Board and the Fund.

16.-(1) The Agency shall- Objectives of the Agency F u n c tio n s o f th e Agency (a) act as the executive body and Secretariat to the Board, and shall keep all records of the affairs and the m eetings o f the B oard and ensure the implementation o f its decisions and directives; (b) propose criteria for selecting the Trust Agent of the Fund in accordance with section 23 and recommend such an agent to the Board following a competitive selection process, (c) prepare and submit for B oard’s approval the application procedures, guidelines, selection criteria, standards and terms and conditions for grants. (2) The Agency shall select projects for evaluation, and shall contract suitably qualified persons to evaluate the social and economic impacts o f these projects. (3) The Agency shall recommend to the Board projects for approval. 489 No. 8 Rural Energy 2005 (4) The Agency shall establish an information system to capture and store information on approved and executed projects and without prejudice to the foregoing it shall- (a) prepare proposals to the Board for additional means and sources of finance to be used for the benefit of rural energy service provision; (b) ensure the timely collection and deposit of all the funds to be collected from sources specified under this legislation in the account of the Fund; (c) promote the Agency and the Fund to the appropriate local and national governm ent authorities, and facilitate the co-ordination o f the activities o f the Agency with other rural developm ent activities; (d) facilitate provision o f capacity building activities as appropriate in the preparation, installation, operation and management o f rural energy systems; (e) facilitate provision of technical assistance by qualified private entities related to technical design, management, financial analysis, project finance and sound business practices to qualified developers; (f) facilitate the preparation and appraisal by qualified private entities of projects applying for grants; (g) facilitate the preparation of bid documents for projects to be competitively tendered to prospective developers; and (h) recommend to the Board award of grants and execution of grant contracts in accordance with established criteria. (5) The Agency shall keep accounts and records of its transactions and affairs and shall ensure that all moneys received are properly brought to account and all payments out of its moneys are correctly made and properly authorized and adequate control is maintained over its property and over the incurring o f liabilities by the Agency. (6) The Agency in collaboration with the relevant authority shall ensure that the relevant applicable environmental standards, if any, are used in designing, constructing, operating and maintaining rural energy systems. 490 No. 8 Rural Energy 2005 PART V E s t a b l i s h m e n t o f t h e R u r a l E n e r g y F u n d
Section 16Verify source

Part

PART V

§ 28Section 28Provision

This section lists topics about the Fund, its management, accounts, staff, reports, and immunities.

28. Establishment of the Fund. Mandate of the Fund. Funding Sources. Special Purpose Funds. Management of the Fund. Use o f the Fund. Trust Agent. Annual accounts. Appointment of Director General, Officers and Staff. Functions o f the Director General. Reports. Immunities. SCHEDULES 478 No. 8 Rural Energy 2005 THE UNITED REPUBLIC OF TANZANIA No. 8 o f 2005 , i A s s e n t , B e n j a m i n W i l l i a m M k a p a , President 6th June, 2005 An Act to establish the Rural Energy Board, Fund and Agency to be responsible for promotion of improved access to modern energy services in the rural areas of Mainland Tanzania and through a Fund within the Agency Board to provide for grants and subsidies to developers of rural energy projects and for related and consequential matters. * ,; . E n a c t e d by the Parliament of the United Republic of Tanzania. . r ' I......•.... ......... .......1 > PARTI P r e l i m i n a r y P r o v i s i o n s
Section 28Verify source
§ 17There shall be established a Fund to be known as the RuralProvision

A Rural Energy Fund is to be established to provide grants to qualified project developers.

17. There shall be established a Fund to be known as the Rural Energy Fund for the purpose o f providing grants to qualified developers o f projects. Establish­ ment of the Fund
Section 17Verify source
§ 18(1 )The Fund shall represent the funding mechanism by whichProvision

The Fund must provide resources for grants, technical assistance, training, capacity building, and financial assistance.

18.-(1 )The Fund shall represent the funding mechanism by which the Board shall fulfil its mandate to provide grants to subsidize the capital cost of projects that are developed by private and public entities, co-operatives, and local community organisations. Mandate o f the Fund (2) The Fund shall provide resources for - (a) grants towards the capital costs of projects implemented by private and public entities, co-operatives, and local community organisations; (b) the provision of technical assistance, training and other forms o f capacity building to qualified developers by qualified experts related to the planning and preparation of a project prior to an application for a grant; and (c) the provision of financial assistance.
Section 18Verify source
§ 19(1) All contributions and other payments required by thisProvision

The Board must set the size of the Fund in consultation with the Minister, and the Fund is financed from listed sources including government allocations, contributions, levies, and fees.

19.-(1) All contributions and other payments required by this Part shall be paid into the Fund, for the purposes o f the Fund and for making other payments required by this Act. Funding Sources (2) The Board shall, from time to time in consultation with the Minister, fix the size o f the Fund sufficient to achieve the objectives of this Act. (3) The sources of income for the Fund shall consist of monies as may be provided- (a) by Government in an annual budgetary allocation, to be deposited in the account of the Board at the beginning of every month or as may be determined by the Minister for Finance; 491 No. 8 Rural Energy 2005 (b) as contributions from international financial organisations, multilateral and bilateral agencies and other development partners; (c) from levies o f up to five percent on the commercial generation of electricity to the national grid, as determined by the Minister in consultation with the Minister o f Finance, to be deposited in the account o f the Fund at the end of every month; (d) from levies o f up to five percent on the generation of electricity in specified isolated systems, including systems for private consumption as determined by the Minister in consultation with the Minister of Finance, to be deposited in the account of the Fund at the end o f every month; (e) as fees in respect of programmes, publications, seminars, consultancy services and other services provided by the Agency. (4) The moneys constituting the Fund shall be placed in an account with a bank to be invested, in such manner as the Board shall deem appropriate, and any income from the investment shall be credited to the Fund. Special Purpose Fund
Section 19Verify source

Part

SCHEDULES

§ 1This Act may be cited as the Rural Energy Act, 2005 and shonCommencement

The Act may be cited as the Rural Energy Act, 2005, begins on a date appointed by the Minister by Gazette notice, and applies only to Mainland Tanzania.

1. This Act may be cited as the Rural Energy Act, 2005 and shon shall come into operation on such date as the Minister may, by notice published in the Gazette, appoint. . ncement This Act shall apply to Mainland Tanzania only.
Section 1Verify source
§ 3Section 3Provision

This section defines key terms used in the Act, including the Agency, Board, Director General, Fund, Grant, qualified developer, and rural area.

3. In this Act unless the context otherwise requires- ; " 1 fl'-V Applica- tjon Interprcla- 1 • ‘ tion “Agency” means the Rural-Energy Agency established under Section 14 of this Act; 479 No. 8 Rural Energy 2005 Act No. 9 o f 2001 “Annual Report” means the report on the operations of the Agency and Fund submitted by the Director General to the Board on an annual basis, and, once approved by the Board, submitted to the Minister; “Board” means the Board o f Directors established under Section 6 of this Act; “capital subsidy” means financial support given to developers to reduce costs of capital investments; “D evelopm ent P a rtn e r” means governm ents, national and internation al, bilateral and m ultilateral institutions and organisations contributing to Tanzanian’s Development; “Developer” means a developer of, or an investor in, or an operator o f a project, that shall be in the form o f a private or public entity, a co-operative, or a local community organisation; “Director General” means the Director General appointed under the provisions of Section 25(1) of this Act to be the chief executive officer of the Agency; “EW URA” means the Energy and Water Utility Regulatory Authority established under the Energy and Water Utilities Regulatory Authority Act, 2001; “Fund” means the Rural Energy Fund established under Section 17 o f this Act and includes financial resources set aside for rural energy development; “Grant contract” means a contract between the Board and a qualified developer for the provision of a grant; “Grant payments” means the set of payments as shall be stipulated in a Grant contract; “Grant” means an award o f money by the Fund to a qualified developer for the purpose of developing and implementing a project; “Member” means a member o f the Board and includes the Chairman; “Minister for Finance” means the Minister for the time being responsible for finance; “Minister” means the Minister for the time being responsible for energy; “M odern energy” means energy that is based on petroleum, electricity or any other energy forms that have commercialized market channels, a higher heating or energy content value than 480 No. 8 Rural Energy 2005 traditional biomass fuel, and that which may be easily transported stored and utilized; “Priority p rojects” means projects that are prioritised for development by the Agency in its work plans, as approved by the Board; “Project” means the activities and investments associated with the provision o f modern energy services in a locality in a rural area of Mainland Tanzania; “Qualified developer” means a developer that satisfies the criteria for qualification as established by the Board; “Rural area” means an area outside an urban authority; “Special Purpose Fund” means a fund established as a funding instrument under the Fund by special agreement between the Minister and Development Partners; “Trust Agent” means the agent appointed under the provisions of Section 23 of this Act. P r i n c i p l e s o f R u r a l E n e r g y D e v e l o p m e n t PART II The principles of Rural Energy Development shall be as follows
Section 3Verify source

Part

Part shall be paid into the Fund, for the purposes o f the Fund and

§ 20(1) The Minister may, in consultation with the Minister forProvision

The Minister may consult the Minister for Finance and make agreements with development partners to set up Special Purpose Funds for rural energy.

20.-(1) The Minister may, in consultation with the Minister for Finance, execute agreements with development partners setting up Special Purpose Funds for rural energy detailing separate financing arrangements for the Fund. (2) The agreements made in subsection (1) above shall define the specific modalities for administering the Special Purpose Funds. (3) The modalities set out under the agreements made under this section shall not be contrary to the general principles established in the First Schedule o f this Act for the use o f the Fund. 492 No. 8 Rural Energy 2005
Section 20Verify source
§ 21(1) The Board shall be responsible for policy formulation inProvision

The Board is responsible for Fund policy and governance, must approve payments from the Fund, and may take necessary steps to reduce risk or avert threatened loss. The Agency must provide facilities and officers needed for the Fund’s work.

21.-(1) The Board shall be responsible for policy formulation in connection with the Fund and for governance of the Fund. Manage­ ment of the Fund (2) Funds to be paid out of the Fund shall be so paid only with the approval of the Board. (3) The Agency shall make available to the Fund such facilities and services of such officers as are necessary for the proper and efficient exercise o f the functions o f the Fund. (4) Where it considers it desirable to reduce risk or avert threatened loss to the Fund, the Board may take any steps it considers necessary on such terms and conditions as it may prescribe.
Section 21Verify source
§ 22(l) The resources of the Fund shall be applied towardsProvision

The Fund must use its resources for grants to qualified developers, Agency/Board expenses and obligations, and remuneration or allowances for Board members and Agency employees.

22.-(l) The resources of the Fund shall be applied towards- (a) grants to qualified developers; Use of the Fund (b) payment or discharge o f the expenses or obligations incurred in connection with the performance o f the functions o f the Agency and the Board; and (c) payment of any remuneration or allowances to the members of the Board and employees of the Agency. (2) Grants made by the Fund to qualified developers may be used to co-finance- (a) training and other forms of capacity building of qualified developers; (b) the provision of technical assistance by suitably qualified experts related to the planning and preparation o f a project prior to an application for a grant, including pre-investment studies for projects; . (c) the capital costs of a project implemented by a qualified developer; and No. 8 Rural Energy 2005 (d) investments in innovative pilot and demonstration projects and applications for renewable energy when development partners make special purpose funds available for that purpose. (3) The Fund may not make grants towards the operating or debt service costs of any project or developer. Trust Agent
Section 22Verify source
§ 23(1) The Board shall appoint a Trust Agent who shall beProvision

The Board must appoint a Trust Agent to handle grant payment disbursement and administration, and the Trust Agent must meet specified selection and reporting requirements.

23.-(1) The Board shall appoint a Trust Agent who shall be responsible for disbursement o f grant payments from the Fund and ensuring that any pre-conditions set by the Board for making a grant payment are met by the developer. (2) The Trust Agent shall be contracted by the Board through public tender for the procurement of the service where - (a) banks, accounting firms or similar institutions acceptable to the Board may participate in the tender; and (b) the contract with the Trust Agent shall not exceed a period of three years at a time. (3) The Trust Agent shall be responsible for the administration of grant payments, including financial disbursement, verification and monitoring activities. (4) Details o f activities, manner, terms and conditions of grant payments shall be specified in the directives to be issued by the Board and contract documents establishing the relation of the Board and the Trust Agent. (5) Selection of the Trust Agent shall ensure that the Trust Agent- (a) is in a position to provide services with a wide geographic coverage across the Mainland Tanzania; (b) has good knowledge o f project finance, including rural financing issues, as well as means to deliver, track and monitor finances; 494 No. 8 Rural Energy 2005 (c) is able to make disbursements effectively, while ensuring proper use of funds, with ability to monitor the use of funds in an effective and transparent manner; (d) is able to work closely with the Agency under the direction of the Agency and its delegated representatives; (e) is able to set up and operate a management information system that enables key parties to access that information to track progress on disbursement and utilisation of funds. (6) The Trust Agent shall be paid for its services by the Board. (7) The Trust Agent shall be independent of the Fund, and shall prepare periodic financial reports at the request of the Director General.
Section 23Verify source
§ 24(1) The annual accounts of the Fund, including expendituresCommencement

The Fund’s annual accounts, including the Agency’s expenditures, must be audited by an external auditor appointed by the Board after a recommendation from the Auditor General.

24.-(1) The annual accounts of the Fund, including expenditures of the Agency, shall be audited by a competent and qualified external auditor appointed by the Board after receiving a recommendation from the Auditor General. Annual Accounts (2) Donors to the Fund may appoint an auditor of their own choice and at their own expense to audit the accounts of the Fund and Agency if they have a provision of that effect in their agreements to fund the Fund. (3) The financial year of the Fund shall commence on the first day of July and shall end on the thirtieth day of June the following year. (4) The financial year of the Agency shall be the same as the financial year of the Fund. 495 No. 8 Rural Energy 2005 A p p o i n t m e n t o f D i r e c t o r G e n e r a l , O f f ic e r s a n d S t a f f PART VI Appoint­ ment of Director- General Officers, and Staff
Section 24Verify source

Part

PART VI

§ 25(l) The Director General of the Agency shall be appointedProvision

The Board appoints the Director General, using competitive selection, and also appoints other staff. The Director General serves as chief executive officer under the Board’s direction and has limited power to appoint staff under regulations.

25.-(l) The Director General of the Agency shall be appointed by the Board. (2) The recruitment o f the Director General by the Board shall be on the basis of competitive selection. (3) The Director General shall, subject to the overall direction of the Board, be the chief executive officer of the Agency and of the Fund. (4) The Board shall appoint other officers and staff as may be required for the performance of the functions of the Agency and on such terms and conditions as it may determine, provided that the Director General shall subject to terms and conditions set by the Board, have power to appoint staff of the Agency identified under such regulations. (5) The Board shall ensure that the remuneration of the Agency personnel is competitive with that offered by the private sector for comparable responsibilities and shall not be bound by the terms established under the public service structure. Functions o f the Director General
Section 25Verify source
§ 26(l) Without prejudice to the generality of the foregoing theProvision

The Director General must carry out the Agency’s functions, manage its budget, personnel and property, and represent the Fund in dealings with third parties. The Director General may also delegate authority to Agency employees when necessary for efficient performance.

26.-(l) Without prejudice to the generality of the foregoing the Director General shall- (a) exercise the functions of the Agency provided for under section 16 o f this Act; (b) manage the budget, personnel and property of the Agency; and (c) represent the Fund in its dealings with third parties. (2) The Director General may delegate his authority to employees o f the Agency wherever he deems necessary for the efficient performance of the Agency’s activities. 496 No. 8 Rural Energy 2005
Section 26Verify source
§ 27(1) The Director General shall keep all records of the affairs ReportsProvision

The Director General must keep records, implement Board decisions, and submit reports, plans, budgets, and other requested reports to the Board on set schedules.

27.-(1) The Director General shall keep all records of the affairs Reports and the meetings of the Board and shall ensure the implementation of its decisions and directives. (2) The Director General shall submit to the Board quarterly reports in respect of the revenue received and expenditure incurred by the Fund, incorporating expenditures incurred by the Agency. (3) The Director General shall, within three months after the end of each financial year submit to the Board an Annual Report in respect of that year, containing:- (a) audited financial statements of the Fund, incorporating the expenditures of the Agency; (b) performance indicators and any other related information; (c) a report on the activities and operations of the Agency; and (d) such other information as the Board may, before or after the completion of the annual report, direct. (4) The Director General shall, not later than three months before the end o f each financial year, prepare and submit to the Board for its approval, a work plan and budget containing- (a) identification o f priority projects that the Agency should include in its work plans; (b) a short-term work plan setting out the principal activities of the Agency planned for the coming year; (c) a medium-term work plan setting out the expected activities of the Agency for the coming three years; (d) estimates o f the expenditures of the Agency for the coming year; (e) estimates of the grant allocations to be made from the Fund, including all known commitments, anticipated commitments for the com ing year, and estim ates o f longer term commitments; and 497 No. 8 Rural Energy 2005 (f) estimates o f the income o f the Fund for the coming three years. (5) The Director General shall at any time before the end of a financial year, prepare and submit to the Board for approval any estimates supplementary to the budget. (6) The D irector General shall prepare such financial and technical reports as requested by the Board. i m m u n i ­ ties
Section 27Verify source
§ 28Section 28Provision

An Agency employee is exempt from civil or criminal liability for acts or omissions done in good faith while performing functions under this Act.

28. An employee of the Agency shall not, in his personal capacity, be liable in civil or criminal proceedings in respect of any act or omission done in good faith in the performance of his functions under this Act. FIRST SCHEDULE (Made Under section 21) G u i d e l i n e s f o r M a n a g e m e n t o f t h e F u n d Procedures and principles fo r fun d allocation
Section 28Verify source
§ 1Authorization o f the use o f the Fund by the Board shall be as followsProvision

The Fund may be used only through specified signatures and co-signatures by Board and Agency officials.

1. Authorization o f the use o f the Fund by the Board shall be as follows- (a) financial commitments from the Fund shall be made by signature o f the Chairman o f the Board co-signed by one other member o f the Board and the Director General; (b) financial commitments o f the Agency within the annual budget shall be made by signature o f the Director General co-signed by the officer o f the Agency in charge o f the accounting function.
Section 1Verify source
§ 2The selection o f projects for funding and the calculation of the level o f grant to aProvision

Project selection and grant levels must be based on published criteria at the start of each financial year.

2. The selection o f projects for funding and the calculation of the level o f grant to a project shall be done on the basis o f published criteria at the beginning o f each financial year, indicating:- (i) schedules o f grants for different categories o f investments; (ii) project and developer eligibility criteria; and (iii) the procedures for the submission and processing o f applications to the Fund.
Section 2Verify source
§ 3For purposes o f regional equity, the Board may differentiate grants by region andProvision

The Board may differentiate grants by region and location for regional equity.

3. For purposes o f regional equity, the Board may differentiate grants by region and location. 498 No. 8 Rural Energy 2005 Processing o f Fund applications front locally initiated projects
Section 3Verify source
§ 4At the beginning o f each financial year, the Agency shall issue a notice by way ofProvision

Each financial year, the Agency must publish an advertisement-style notice inviting developers to apply for grant support for projects.

4. At the beginning o f each financial year, the Agency shall issue a notice by way of advertisement inviting developers to submit applications for grant support for projects.
Section 4Verify source
§ 5The applications shall be assessed by the Agency against the published eligibilityProvision

The Agency must assess applications against the published eligibility criteria and recommendations on grant funding and grant amounts.

5. The applications shall be assessed by the Agency against the published eligibility criteria and recommendations prepared on eligibility for grant funding and the level of grant that may be awarded.
Section 5Verify source
§ 6The results o f the assessment made under paragraph 5 above together with theProvision

The assessment results and the Agency’s recommendations must be submitted to the Board for approval.

6. The results o f the assessment made under paragraph 5 above together with the Agency’s recommendations, shall be submitted to the Board for approval.
Section 6Verify source
§ 7The Board may delegate its authority with respect to grant allocations to theProvision

The Board may delegate grant-allocation authority to the Director-General for grants below a Board-set level that is revised annually.

7. The Board may delegate its authority with respect to grant allocations to the Director-General for award o f grants below a level that is specified by the Board and revised on an annual basis.
Section 7Verify source
§ 8Within five days o f the Board entering into a grant contract with a Developer, theProvision

The Director General must, within five days after the Board enters a grant contract with a Developer, send a copy to the Trust Agent and instruct the Trust Agent to make grant payments.

8. Within five days o f the Board entering into a grant contract with a Developer, the Director General shall send a copy thereof to the Trust Agent instructing the Trust Agent to make grant payments to the project developer in accordance with conditions set out in the grant contract. Tenders fo r National Priority Rural Energy Projects
Section 8Verify source
§ 9The Agency shall prepare pre-feasibility studies for priority projects identifiedProvision

The Agency must prepare pre-feasibility studies for priority projects identified by the Board.

9. The Agency shall prepare pre-feasibility studies for priority projects identified by the Board.
Section 9Verify source
§ 10The anticipated grant for a priority project shall be estimated by the Agency onProvision

The Agency must estimate the anticipated grant for a priority project using the project’s pre-feasibility investment programme and the year’s adopted grant schedule.

10. The anticipated grant for a priority project shall be estimated by the Agency on the basis o f the investment programme defined in the pre-feasibility study and the adopted schedule of grants for the particular year.
Section 10Verify source
§ 11Priority projects shall be tendered to potential developers through an open andProvision

Priority projects must be tendered to potential developers through an open and competitive tender process.

11. Priority projects shall be tendered to potential developers through an open and competitive tender process in which the evaluation criteria are specified in the tender documents.
Section 11Verify source
§ 12The required investment program shall be included in the bidding documentsProvision

The required investment program must be included in the bidding documents for the tender.

12. The required investment program shall be included in the bidding documents for the tender.
Section 12Verify source
§ 13The Agency shall review all proposals received from potential developers, andProvision

The Agency must review proposals from potential developers, evaluate them against the criteria in the tender documents, and submit a recommendation on the selected developer to the Board.

13. The Agency shall review all proposals received from potential developers, and shall evaluate these proposals against the evaluation criteria published in the tender documents; and shall submit a recommendation on the selected developer to the Board.
Section 13Verify source
§ 14Subject to the Boards approval, the Agency shall negotiate a grant contract withProvision

The Agency must negotiate a grant contract with the preferred developer, but only if the Board approves.

14. Subject to the Boards approval, the Agency shall negotiate a grant contract with the preferred developer. The Grant Contract
Section 14Verify source
§ 15The content o f a grant contract shall be in accordance with any conditionsProvision

Grant contract content must follow any conditions set by the Board.

15. The content o f a grant contract shall be in accordance with any conditions established by the Board.
Section 15Verify source
§ 16The information to be included in a grant contract shall include but not beProvision

A grant contract must include specified project, financing, supervision, transfer, and non-fulfilment details.

16. The information to be included in a grant contract shall include but not be limited to - (a) a description o f the project; 499 No. 8 Rural Energy 2005 (b) the place o f execution of the project; (c) a report on the financial status o f the developer; (d) anticipated financing arrangements for the project including the developer’s own equity contribution and sources and conditions o f loan finance; (e) the disbursement schedule for grant payments set against project development milestones; (f) mechanisms for project supervision and control, including regular reporting requirements during the implementation o f the investment programme; (g) specification o f any guarantees as required by the Board; (h) a mechanism and process to transfer the grant contract to another entity where the ownership o f the project is transferred to another entity during the period in which the grant contract is valid; (i) description o f consequences and procedures in case o f non-fulfilment o f the investment programme.
Section 16Verify source
§ 17Where the developer is required to obtain a licence or authorisation fromProvision

If the developer needs an EWURA licence or authorisation, the grant contract must make that licence or authorisation a condition precedent. If the developer’s licence is withdrawn or suspended, the Board does not have to make grant payments.

17. Where the developer is required to obtain a licence or authorisation from EWURA, the grant contract shall have the award o f such a licence or authorisation as a co n d itio n precedent; and the Board shall be absolved from making any grant payments should the developer’s licence be w ith d ra w n or suspended. Procedures fo r the Trust Agent
Section 17Verify source
§ 18The Trust Agent shall disburse payments according to the schedules establishedProvision

The Trust Agent must disburse payments according to the schedules set in the grant contracts.

18. The Trust Agent shall disburse payments according to the schedules established in the grant contracts.
Section 18Verify source
§ 19The Trust Agent shall employ its own staff or consultants to verify the progressProvision

The Trust Agent must use its own staff or consultants to check project progress against the grant contract milestones before funds are disbursed to the developer.

19. The Trust Agent shall employ its own staff or consultants to verify the progress o f the project against the milestones established in the grant contract for disbursement o f funds to the developer.
Section 19Verify source
§ 20The Trust Agent shall verify that the equipment, materials, installations andProvision

The Trust Agent must verify that specified grant-contract equipment, materials, installations, and activities have been installed and meet the contract’s terms, conditions, and standards.

20. The Trust Agent shall verify that the equipment, materials, installations and other activities set out in the grant contract have been installed and are in accordance with any terms, conditions and standards as set out in the grant contract. Verification by the Agency
Section 20Verify source
§ 21Where directed by the Board, the Trust Agent shall undertake an independentProvision

If directed by the Board, the Trust Agent must independently verify project completion at commissioning and check compliance with the grant contract.

21. Where directed by the Board, the Trust Agent shall undertake an independent verification o f project completion at the time o f commissioning and shall verify that the project is in compliance with any terms, conditions and standards set out in the grant contract. 500 No. 8 Rural Energy 2005 SECOND SCHEDULE (Made under section 10(1)) P r o c e e d in g s o f M e e t i n g s o f t h e B o a r d M eetings
Section 21Verify source
§ 1The Board shall meet at least four times a year and at such other times as may beProvision

The Board must meet at least four times a year, and it may also meet whenever necessary or expedient for its business.

1. The Board shall meet at least four times a year and at such other times as may be necessary or expedient for the transaction o f its business.
Section 1Verify source
§ 2All meetings o f the Board shall be convened by the Secretary to the Board orProvision

The Secretary to the Board must convene all Board meetings; if the Secretary is incapacitated, the Chairman appoints the meeting time, place, and date.

2. All meetings o f the Board shall be convened by the Secretary to the Board or where the Secretary is incapacitated, the Chairman, who shall appoint a suitable time, place and date for the holding o f each meeting.
Section 2Verify source
§ 3The Secretary shall convene a special meeting o f the Board on a request inProvision

The Secretary must call a special Board meeting when at least five Board members sign a written request, and the meeting must be held within 21 days of receipt of that request.

3. The Secretary shall convene a special meeting o f the Board on a request in writing signed by not less than five members o f the Board for such a meeting and shall cause the meeting to be held within twenty-one days o f the receipt by him o f such request.
Section 3Verify source
§ 4Except in the case o f a special meeting, a Board meeting shall be convened withProvision

Except for special meetings, a Board meeting must be called with at least five days’ written notice that states the business to be transacted, and every Board member must receive written notice of the meeting.

4. Except in the case o f a special meeting, a Board meeting shall be convened with at least five days notice in writing, specifying the business to be transacted at the meeting, and written notice o f the convening o f the meeting shall be given to every member o f the Board.
Section 4Verify source
§ 5Any m e m b e r o f the Board with a Commercial interest in any business to beProvision

A Board member with a commercial interest in business being discussed at the meeting must notify the Chairman and Secretary and leave that part of the meeting.

5. Any m e m b e r o f the Board with a Commercial interest in any business to be transacted at the meeting shall notify the Chairman and Secretary to the Board and shall excuse himself from that portion o f the meeting where that business is discussed.
Section 5Verify source
§ 6The Chairman shall preside at the meeting o f the Board and in the absence o f theProvision

The Chairman must preside at Board meetings. If the Chairman is absent, the members present must elect one of their number to act as interim Chairman.

6. The Chairman shall preside at the meeting o f the Board and in the absence o f the Chairman the members present at the meeting shall elect one o f their number to be an interim Chairman.
Section 6Verify source
§ 7Minutes in proper form o f each meeting o f the Board shall be kept and shall beProvision

Minutes of each Board meeting must be kept, confirmed at the next meeting, and signed by the Chairman of the meeting.

7. Minutes in proper form o f each meeting o f the Board shall be kept and shall be confirmed by the Board at its next meeting and signed by the Chairman o f the meeting. Quorum and decision making
Section 7Verify source
§ 8Five members o f the Board shall constitute a quorum at any meetingProvision

A quorum at any meeting is constituted by five members of the Board.

8. Five members o f the Board shall constitute a quorum at any meeting.
Section 8Verify source
§ 9All acts, matters and items authorised by the Board shall be decided by resolutionProvision

The Board must decide all acts, matters, and items it authorises by resolution at a Board meeting with a quorum.

9. All acts, matters and items authorised by the Board shall be decided by resolution at a meeting o f the Board at which there is a quorum.
Section 9Verify source
§ 10A decision approved by voting by the majority o f members present at a meetingProvision

A board decision approved by a majority vote of members present at a meeting is treated as a decision of the Board.

10. A decision approved by voting by the majority o f members present at a meeting o f the Board shall be deemed to be a decision o f the Board.
Section 10Verify source
§ 11Every member o f the Board, excluding ex-ofificio members, shall have one voteProvision

Board members (other than ex-officio members) each have one vote, and the meeting chairman gets a casting vote if votes are equal.

11. Every member o f the Board, excluding ex-ofificio members, shall have one vote and in the event o f an equality o f votes the Chairman o f the meeting shall have a second or casting vote in addition to his deliberative vote. 501 Rural Energy 2005
Section 11Verify source
§ 12Notwithstanding the provisions o f this Schedule, where the Chairman so directsProvision

If the Chairman directs it, the Board may decide a matter without meeting by circulating papers and written views. Any member may require the decision to be deferred until the matter is considered at a Board meeting.

12. Notwithstanding the provisions o f this Schedule, where the Chairman so directs a decision may be made by the Board without a meeting by circulation o f the relevant papers among all the members and the expression in writing o f their views, but any member shall be entitled to require that any such decision be deferred until the subject matter shall be considered at a meeting o f the Board.
Section 12Verify source
§ 13Subject to the provisions o f this Schedule relating to quorum, the Board mayProvision

The Board may act even if there is a vacancy in its membership, and its acts are not invalid just because a member’s appointment is defective. It also has power to regulate procedure.

13. Subject to the provisions o f this Schedule relating to quorum, the Board may act notwithstanding any vacancy in the membership thereof and no act or proceeding o f the Board shall be invalid by reason only o f some defect in the appointment o f a member or a person who purports to be a member. Power to regulate procedure
Section 13Verify source
§ 14The Board shall have power to regulate its own procedure and may from time toProvision

The Board may regulate its own procedure and may make standing orders about Board meetings and the conduct of its business.

14. The Board shall have power to regulate its own procedure and may from time to time make standing orders providing for all matters relating to the meetings o f the Board and the proper conduct o f its business. Agency seal
Section 14Verify source
§ 15All deeds, instruments, contracts and other documents shall be deemed to beProvision

Documents are treated as duly executed for the Board if they are sealed and signed in one of the listed ways.

15. All deeds, instruments, contracts and other documents shall be deemed to be duly executed by or on behalf o f the Board - (a ) it sealed with the seal o f the Board and signed by the Chairman and the Secretary o f the Board; or (b ) if sealed with the seal o f the Board and signed by the Director General and two members o f the Board; or (c) if sealed with the seal o f the Board and signed by one member o f the Board and the Secretary both o f whom have been authorised by the Board for the purpose. Passed in the National Assembly on the 18th April, 2005. D a m ia n S . F o k a , Clerk o f the National Assembly 502
Section 15Verify source

Legislative relationships

4 referenced instruments

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

A–F

2 instruments

  • Agency provided for under section 16 o f this Act

    Section 26

  • First and Second Schedules to this Act

    Section 5

N–S

2 instruments

  • Second Schedule to this Act

    Sections 9, 10

  • Section 25(1) of this Act

    Section 3

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