Impact of Power Rationing On the Tanzanian Economy 20 April 2006

Quantification of Impact Based on TANESCO 1980 study Cost of “un-served” energy is US$1.0 per kWh A 2004 study result was US$2.0 per kWh Reflecting increased electricity use in the economy Source: World Bank - Tanzania

World Bank Shortage Estimate Source: World Bank - Tanzania

World Bank Shortage Estimate Source: World Bank - Tanzania

Estimated Cost to the Economy Source: World Bank - Tanzania

Estimated Cost to the Economy Source: World Bank - Tanzania

Impact on Estimated GDP Tanzania GDP for 2006 estimated at $614.9 million without power rationing 5% reduction - assuming cost impact of US$1.1 per un-served kWh 9% reduction – assuming cost impact of US$2.0 per un-served kWh Source: World Bank - Tanzania