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Tanzania, Brazil plan US2billion hydropower plant

Tanzania is planning with Brazil to construct a US$2 billion hydropower plant in Tanzania, wire services reported.

Officials from Tanzania held talks with their Brazilian counterparts in Sao Paolo earlier in 2010 on the construction of the proposed 2,100-MW Stiegler's Gorge hydropower station, Reuters reported.

The plant would be a source of cheap, abundant energy at a cost of around 2 U.S cents per kilowatt hour. It would help control flooding in the Rufiji area and create a reservoir with a total capacity of 34 billion cubic meters to supply the commercial capital Dar es Salaam and other regions, wire reports indicate.

The government is considering funding options for the project, including concessional loans, private investment or state financing, reports indicate.

Brazil will provide the technology to build the plant, Reuters reported.

The project's current timetable calls for the feasibility study to be updated next year and for the first of three 700-MW turbines to be installed in 2012, media reports indicate. Full project completion is projected for 2015.

Recently, the government of Tanzania signed a deal with Russia-based Borodino for the construction of the $700 million Rumakali hydropower plant in Tanzania's Iringa region.

Construction of the 222-MW hydropower station will begin by 2013, and the plant is expected to come online by 2018, according to reports.

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