Tanzania to sign deal this week for $3 bln power plant with Egyptian companies

Reuters , Tuesday 11 Dec 2018

 John Magufuli
FILE PHOTO: Tanzania's President John Magufuli addresses a news conference during his official visit to Nairobi, Kenya October 31, 2016. REUTERS

Tanzania will sign a deal this week for the construction of a $3 billion hydroelectric power plant, the president said in remarks broadcast on state television on Tuesday.

President John Magufuli did not name the company awarded the contract for the power plant and dam to be built in the Selous Game Reserve, a U.N.-designated world heritage site in southern Tanzania. Government sources told Reuters the contract would be signed with Egypt’s Arab Contractors.

Magufuli said the East African country was moving ahead with the project due to improved revenue collection by the government, without giving details.

The 2,100 MW project would more than double the country’s power generation capacity. But the project’s location is in a World Heritage site and has faced opposition from conservationists. They have said the construction of a dam on a major river that runs through the Selous Game Reserve could affect wildlife and their habitats downstream.

The government invited bids in August last year for the project at Stiegler’s Gorge which is in the Selous Game Reserve.

Egypt’s El Sewedy Electric Co has said it will also participate in the construction of the dam.

Arab Contractors will have a 55 percent stake in the project and El Sewedy 45 percent, Ahmed Hassouna, El Sewedy’s head of marketing, said on Tuesday.

Covering 50,000 square km, the Selous Game Reserve is one of the largest protected areas in Africa, according to UNESCO. It is known for its elephants, black rhinos and giraffes, among many other species.

* This story has been edited by Ahram Online

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