Tanzania appeals to AfDB for financing of grand hydropower project

DAR ES SALAAM, April 28 (Xinhua) -- Tanzanian President John Magufuli has appealed to the African Development Bank (AfDB) to assist in the financing of the 2,100-megawatt (MW) Stiegler's Gorge hydroelectric plant in the Selous Game Reserve, the Ministry of Finance said on Saturday.

Tanzanian authorities say the power project in the game reserve, a World Heritage Site renowned for its animal populations, was vital in its bid to diversify its energy mix and end chronic electricity shortages.

The Ministry of Finance and Planning said in a statement that President Magufuli, who is personally pushing the long-delayed project, made the financing request directly to AfDB President Akinwumi Adesina during talks in the capital Dodoma over the weekend.

The AfDB confirmed that it was reviewing Magufuli's request for financing the power project, according to the statement.

"President Magufuli is very committed to ensure that the country industrializes, but you cannot industrialize unless you have access to electricity," Adesina told a news conference after he had concluded talks with President Magufuli.

"The president is very keen to talk to us about the Stiegler's Gorge project ... he mentioned that to us and we are going to be looking at that with him and the government, but also we are very keen to look at other alternative sources of energy," said the AfDB president.

Adesina said the AfDB would also work with the government of Tanzania to develop integrated power projects in Tanzania with the private sector.

Finance and Planning Minister Philip Mpango said the government was also seeking a 200-million-U.S.-dollar loan from the AfDB to build a new international airport in Dodoma, plus additional financing for construction of ring roads in the nation's capital.

The government invited bids in August last year for the Stiegler's Gorge project and hopes construction work will begin as early as July this year.

Magufuli said previously that his government has already set aside funds as a down payment for the project.

The project was expected to more than double the country's current power generation capacity of around 1,500 MW.

Covering 50,000 square kilometres, the Selous reserve is one of the largest protected areas in Africa, according to UNESCO. It is known for its elephants, black rhinoceroses and giraffes, among many other species.

The WWF conservation group warned in a report in July last year that the proposed large-scale hydropower dam "puts protected areas of global importance, as well as the livelihoods of over 200,000 people who depend upon the environment, at risk." Enditem