The Tanzanian government granted a $309.6 million advance to the Egyptian company Arab Contractors for the construction of the Stiegler's Gorge hydroelectric plant. The plant is being constructed on the Rufiji River and will have a capacity of 2,115 MW.
The amount paid represents 15% of the total cost of construction the hydroelectric plant. According to the terms agreed by the parties, the project will be financed at 30% by the Tanzanian government and 70% by external financing.
"The amount we have paid today is 70% foreign investment. The government's participation in the project will be paid once the contractor has finalized all the formalities related to the file, "said Hamis Mwinyimvua, Permanent Secretary of the Tanzanian Ministry of Energy.
This advance allows the builder to complete the financial mobilization of the project and start the work.
When completed in 36 months, the plant will almost triple the country's current installed capacity of 1,605 MW. Tanzania's goal is to reach 10,000 MW by 2025.