Stiegler’s Gorge, two other projects to gobble up Sh1.9 trillion in Tanzania’s 2019/20 budget

Tuesday May 28 2019

Minister for Energy, Dr Medard Kalemani

Minister for Energy, Dr Medard Kalemani 

By Ibrahim Yamola @TheCitizenTZ

Dodoma. The Minister for Energy, Dr Medard Kalemani, asked the Parliament to approve a total of Sh2.142 trillion for his ministry for the financial year 2019/20 on Tuesday, May 28, 2019, saying 95.1 per cent of the cash will be spent on three strategic projects.

The amount sought for approval during the 2019/20 financial year is an increase from the Sh1.69 trillion that was endorsed during the 2018/19 budget.

The three strategic projects include: the Stiegler’s Gorge Hydroelectric Dam, the third phase of the Rural Electrification Agency (Rea) and extension of the Kinyerezi 1 gas-to-power project.

A joint venture, comprising Egyptian firms Arab Contractors and Elsewedy Electric, is currently building the $2.95 billion (Sh6.6 trillion) Stiegler’s Gorge Hydroelectric Dam which will add a total of 2,100MW to the national grid upon completion.

Last month, the project received a boost when CRDB Bank Plc and United Bank for Africa (Tanzania) joined Africa Export-Import Bank (Afreximbank) and some Egyptian lenders to provide $737.5 million in bank guarantees to Tanzania Electric Supply Company (Tanesco), paving the way for the project execution.

And speaking in Parliament on Tuesday, Dr Kalemani said the three projects will consume Sh1.86 trillion in total during the coming financial year.


The breakdowns show that the Stiegler’s Gorge Project will consume Sh1.44 trillion. The Rea project will cost Sh363.11 billion while the remaining Sh60 billion will be spent on Kinyerezi 1 Extension.

Dr Kalemani, who doubles as Member of Parliament (MP) for Chato, said in total Sh2.11 trillion will be spent as development expenditure during the coming financial year.

Out of the money, Sh1.95 trillion will be sourced locally while only Sh160 billion will come from foreign sources.

Only Sh26.33 billion, equivalent to 1.2 per cent of the budget will be for recurrent expenditure.