Sumitomo has started construction on the $312.6m Kinyerezi natural gas-fired combined cycle power plant in Tanzania.
Said to be the country's first natural gas-fired combined cycle power plant, the 240MW Kinyerezi facility is being built 30km south-west of Dar es Salaam, Tanzania.
Sumitomo is carrying out construction as part of an engineering, procurement and construction (EPC) contract it secured from the state-run Tanzania Electric Supply (Tanesco).
The power plant uses six Mitsubishi Hitachi Power Systems (MHPS) built H-25 gas turbines and generators to produce electricity that will be enough to serve nearly 20% of the country's total power needs.
Planned to be commissioned in early 2018, the power plant will be handed over to Tanesco in the following September.
Toshiba Plant Systems & Services will be responsible for the supply of heat recovery boilers, steam turbines and other equipment. It will also undertake civil and installation works, as well as coordinate technical matters.
The project is being backed by Sumitomo Mitsui Banking (SMBC) and Japan Bank for International.
It will help Tanzania meet the growing power needs as it faces a decline in hydroelectric power generation, the country's primary power source.
In addition, the project is expected to contribute to improving Tanzania's basic infrastructure as a part of the 'Partnership for Quality Infrastructure' initiative, which is being supported by the Japanese government with funding, insurance and technology.