Deal signed for major new hydro scheme in Tanzania

13 December 2018

The Government of Tanzania has signed deals with Eqyptian firms to build a 2115MW hydroelectric project in the country, Reuters has reported.

Representatives of state-run Tanzania Electric Supply Co signed the deals for the $3 billion project with Arab Contractors and El Sewedy Electric Co, in the presence of Tanzania’s President John Magufuli and Eqyptian Prime Minister Mostafa Madbouly on Wednesday. The JV between the two construction firms will see Arab Contractors hold a 55% stake and El Sewedy the remaining 45%.

The project will more than double power generation capacity in Tanzania, and is expected to come online in 2022.

There have been concerns raised by environmental groups due to the project’s location in a UNESCO world heritage site, with groups worried about impacts on the Selous Game Reserve.



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