Stiegler’s Gorge contractors get 688bn/- advance payment

25Apr 2019
Getrude Mbago
The Guardian
Stiegler’s Gorge contractors get 688bn/- advance payment

THE government yesterday released 688.65bn/- in advance payment to the contractor of the 2100-MW Stiegler's Gorge hydroelectric power station ahead of the start of construction in June.

To be implemented jointly by Arab Contractors and Elsewedy Electric Co., the project is now in mobilization stage which includes setting up of enabling infrastructure such as houses, roads and water prior to its official commencement.

Speaking during the handing over event yesterday in Dar es Salaam, Treasury Permanent Secretary Doto James said that payment was part of an estimated $3 billion (equivalent to 6.5tri/-)  to be wholly funded by the government.

“The issuance of the advance payment marks a crucial milestone towards commencement of the implementation of the project which upon completion will play a pivotal role towards realization of Tanzania’s industrialization strategy and attainment of middle income status by 2025,” he declared.

The project will also improve irrigation agriculture, water supply in Dar es Salaam and Coast regions as well as enhancing tourist activities in the Selous Game Reserve.

For his part, Energy Permanent Secretary Dr Hamisi Mwinyimvua said the project which will be implemented in 36 months to generate 2,115MW represents a greater power source than all electricity generated from all other sources in the country, which currently stands at 1,602MW.

He assured the contractors of full government support, urging them to work hard and with due diligence to ensure quality work.

Mohammed Hassan, the deputy project director of Arab Contractors commended the government for its solid commitment towards the implementation of the project. The consortium shall work to ensure that they provide quality work and within the set timeframe.

“We appreciate the government of Tanzania for paying us on time. Our job now is to produce quality work,” he told the gathering.

Last week, CRDB Bank Plc and the United Bank for Africa (UBA) signed a $737.5 million bank guarantee to the Tanzania Electric Supply Co. Ltd (Tanesco) for the implementation of the massive hydropower project.

On December 12, 2018, the government signed a $3billion landmark deal with Arab Contractors to implement the project.

The signing of the deal was witnessed by President John Magufuli and Egyptian Prime Minister Mostafa Madbouly in Dar es Salaam.

Speaking shortly after the agreement was signed, President Magufuli reiterated his rejection of exaggerated environmental concerns, saying the project will instead be eco-friendly.

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