This archive report was first published on 24 July 2019.
On December 12, 2018, the Tanzanian government and Arab Contractors signed an agreement to construct the 2,115 Megawatts Stiegler's Gorge Hydropower project. The project, which is set to take place along the Rufiji River, south-east of the country's largest Selous Game Reserve, is estimated to take three years to complete.
According to a statement made by Tanzania's chief government spokesperson, Hassan Abbasi, on July 26, 2019, the $3 billion project will be launched by President John Magufuli. The project's implementation will be facilitated by a $737.5 million bank guarantee signed by Tanzania Electric Supply Company Limited (TANESCO) with Tanzania's CRDB Bank Plc and the United Bank of Africa – Tanzania.
On April 2019, the government made a $309.645 million payment, giving the green light for the commencement of the project. Dr. Hamis Mwiniyimvua, the Permanent Secretary in the ministry of energy, expressed confidence that the advance payment would enable the contractor to mobilize and begin implementation of the works.
The project is expected to stimulate industrialization by adding to the national grid, marking a major milestone in Tanzania's power generation sector. It will also employ an estimated 12,000 Tanzanians directly and boost the tourism industry through sport fishing, boat rides, and photographic safaris. Mr. Abbasi added that larger reservoirs will be constructed to aid in flood control, water supply, irrigation, fisheries, and recreation.
However, environmentalists have raised concerns about the viability of the project given the environmental threat it poses to the Selous game park ecosystem in the wake of global warming. The Selous Game Reserve is a UNESCO heritage site, and conservationists are calling for a comprehensive strategic environmental assessment.
