All set for start of the $3.6bn Stiegler’s Gorge power project

Dar es Salaam. The government has officially handed over the site for the construction of the $3.6 billion (about Sh8.5 trillion at the prevailing exchange rate) Stiegler’s Gorge hydroelectric dam project to Egypt contractors.

This paves the way for the contractors to start the job that will avail additional 2,100 Megawatts of electricity to the national power grid.

The site handover comes after preparatory work that included setting up infrastructure to simplify the bringing in of equipment for project commencement and development.

Now, the contractor will be required to start bringing in the required material for work to start. That task, the project managers say, should be completed within six months as the contract works on relevant permits, including insurance before actual construction starts.

The government set aside Sh700 billion locally sourced funds during the 2018/19 budget for start of implementation of the project.

With the site now in the hands of the contractors, Arab Contractors Company, working together with El Sewedy, they have up to 2022 to complete it.

The dam will be one of the largest in Africa and first among member states of the East African Community (EAC), according to Energy minister Medard Kalemani.

Speaking during the handing over ceremony, Dr Kalemani said the contractor was expected to build a dam for nine turbines, each producing 235MW.

The contractor, he said, was also expected to build a 400KW substation that will link the project to the national grid at Rufiji and later at Chalinze and Kibiti. Once completed and production of energy commences, there will no longer be power outages in Tanzania. “The project will also attract tourists who will be interested in viewing the dam and its turbines,” he said.

Holding 3.3 billion litres of water, the dam will also be used to promote irrigation farming.

“It will also push down the cost of electricity especially because water offers the cheapest option compared to all the other sources,” he argued.

Speaking on behalf of the two contractors, Mr Ibrahim Mabruki said the companies, together with the government of Egypt, were committed to ensuring that the project was completed on time and to the highest quality.

He noted that the project involves a lot of technical challenges, coupled with criticism similar to what was being witnessed during the construction of the Aswan High Dam in Egypt.

Earlier, the managing director of Tanzania Electric Supply Company, Dr Tito Mwinuka, said the two companies were picked after they met all tender requirements.