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Tanzania signs $3 billion deal with Egypt for the construction of a hydroelectric power plant

Tanzania’s government has recently signed an agreement with the Egypt’s El Sewedy Electric Company for the construction of a hydroelectric power plant worth $3 billion.

According to Medard Kalemani, the minister of energy; the deal which was signed in the presence of President John Magufuli and Egyptian Prime Minister Mostafa Madbouly, involves the construction of the plant with an installed capacity of 2,115 megawatts (MW), which will more than double the country’s power generation capacity.

Medard who termed the project as a huga dam project revealed that it will be implemented by Egyptian firm Arab Contractor which has a 55 percent stake, with a joint venture with El Sewedy Electric with 45 percent stake in the project.

The Tanzanian president John Magufuli indicated that the project will be carried out due to improved revenue collection by the government, without giving details.

However, the project may affect several ecosystem services provided by Tanzania’s largest river. A July report released by the World Wildlife Fund conservation group revealed that the hydropower dam “puts protected areas of global importance, as well as the livelihoods of close to 200,000 people at risk”.

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