A Joint Venture (JV) between Elsewedy Electric and Arab Contractors, Osman Ahmed Osman & Co, has signed a $2.9bn contract with the Tanzanian Government for a new hydropower plant in Tanzania.
The JV will see the construction of a new dam and hydropower plant on Rufiji river on an engineering, procurement and construction (EPC) basis.
The project, which is located nearly 200km west-south of Dar es Salaam, is financed through direct funding by the Government of Tanzania and is expected to become operational by April 2022.
The hydropower plant in Tanzania, which will be completed under one integrated project management organisation, will be carried out by the joint venture, where the Arab Contractors will hold a 55% stake and Elsewedy Electric will retain remaining 45% share.
Elsewedy Electric president and CEO Ahmed Elsewedy said: “With this unprecedented contract, Elsewedy Electric and its partner are supporting Tanzania’s economic development by exploiting the country water resources to build an affordable, reliable and sustainable energy mix for Tanzania’s future.
“The Tanzanian People can count on the Egyptian JV. This has been also strongly committed by the Egyptian leadership, and it shall remain, as it has always been, the commitment of Elsewedy Electric in all its operation in its mother continent.”
The scope of the project includes construction of a roller compacted concrete (RCC) gravity dam with a height of 131m, a spillway, an RCC saddle dam, three gravity saddle dams, a diversion tunnel, a water-conveying system with three power tunnels, a powerhouse, a 400kV switchyard, and a bridge on Rufiji river.
With an installed capacity of 2,115MW, the project is expected to double the power generation capacity of Tanzania.