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Tanzania issues US$310m advance payment for Stiegler Gorge hydro project

The Tanzanian government has issued an advance payment worth approximately US$310m to the Egyptian company- Arab Contractors for the construction of he 2,096 MW (2,140 MW gross) Rufiji dam and the associated power plant in Stiegler’s Gorge, Tanzania. The project was officially launched and handed over to the contractor in February 2019.

In December 2018, the government signed a contract with a joint venture (JV) of the Arab Contractors Company and the Egyptian state-run utility Elsewedy Electric Company, which will respectively own 55% and 45% in the project. Construction is slated to take 42 months and commissioning is scheduled for April 2022. The project was also approved by the Tanzanian National Environmental Management Council (NEMC) on grounds that it will comply with all the relevant environmental protection measures and will have no impact on the local wildlife even though it will be located in the Selous Game Reserve - a World Heritage site renowned for its animal populations. 

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