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Tanzania Issues Biggest Ever Down Payment For Rufiji Hydro Power Project


 Staff Writer, Dar es Salaam
This week, history has been written in Tanzania; the government has issued the biggest ever down payments worth Tsh. 688.651 billion (over USD 309.64m) to construct the 2,115 megawatts and biggest hydro power plant in East Africa and the 4th in Africa at Stigler’s Gorge along Rufiji river.
The project which is financed solely from taxpayers’ money is expected to be completed by 2022. Upon its completion the project which has the reservoir length of 100 sq. km and covering an area of about 1,350 square km will provide sufficient power for the country’s emerging industries and exporting the surplus to other East African Countries  
Handing over the dummy check to the Egyptian consortium, Arab Contractors and El Sewedy Electric Company which is constructing the project, the Permanent Secretary in the Ministry of Finance and Planning, Mr. Doto James said, “It was the first time for the government of Tanzania to provide such huge amount of money as down payments to finance its developmental projects like this one.”
Mr. Doto thanked President John Magufuli’s commitment of fulfilling the dreams of the late Father of the Nation, Mwalimu Julius Nyerere, who was the pioneer of the project which will cost about Tsh. 6.5 trillion upon its completion.     
Furthermore, Mr. Doto has said that project would act as a solution to all power woes in the country and urged the contractors to watch the agreed standards to ensure the project’s durability and timely completion.
“The government expects to see all projects completed on time, so the contractors have to walk the talk. The government will provide all necessities to have the work done,” said Mr Doto.
Speaking at the event, the Permanent secretary in the Ministry of Energy Dr. Hamis Mwinyimvua said according to article 14.2 of the contract, the first batch of the payments is 15 percent where 70 and 30 of that amount is paid in US dollars and Tanzanian shillings respectively.
On his part, TANESCO Board Chairman Dr. Alexander Kyaruzi said that the installed electricity generation capacity in Tanzania from hydro-power plants, natural gas and independent power producers which uses heavy furnace oil currently stands at just 1,600 megawatts and the 2,115 megawatts Rufiji plant is slated to further boost power generation
Commenting on the historical event the project’s contractor representative Eng. Mohamed Hassan thanked the government and Tanzanians for their cooperation towards implementing the historical project.
Recently, President John Magufuli and the Prime Minister of Egypt, Mostafa Madbouly, witnessed the signing of an agreement for implementation of the project between Tanesco and the Egyptian consortium, Arab Contractors and Elsewedy Electric, at the State House in Dar es Salaam.
Upon the project completion in the next three years, Tanzania will become the leading power producer and supplier in East Africa, with Rufiji project becoming the fourth biggest dam in Africa.
Africa’s largest dam is Ethiopia’s Renaissance, which is under construction, with 6,450MW expected upon completion in 2022. Mambira Dam in Nigeria, follows second with 3,050MW ahead of Ethiopian Shaika Dam that produces 2,160 MW. The Aswan Dam in Egypt, with 2,100MW comes fifth in the ranking, beating Raula Dam in Angola, which produces 2,066M.

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