TZ Advances Power Generation Ambitions

The Government of Tanzania has announced an advance payment of Sh688 billion to the company contracted to construct the Stiegler’s Gorge Hydropower Project, Egypt’s Arab Contractors.

The total value of the contract for the 2,115MW facility stands at S6.558 trillion, which will be fully funded by the Government. The advance payment represents just 15 per cent of the total cost. 70 per cent payment has been made in foreign currency, while a further 30 per cent will be paid in local currency following the finalization of contractual processes.

Arab Contractors will deliver the project in partnership with joint venture partner Elsewedy Electric Company. However, conservationists have opposed the project given its location in a world heritage site. There are also concerns that the costs involved could more than triple before completion. 

The project is expected to take 36 months. In addition to the addition of 2,115MW of capacity, it is also expected to result in the creation of 6,000 direct jobs. Current capacity stands at just 1,602MW.

Earlier this week the government stated that it aims to have 10,000MW of power generation capacity by 2025, with plans to export surplus electricity to neighbours in the East and Southern African region.