Egyptian firms to build $3bn power plant on world heritage site

Tanzania has signed a deal with Egypt’s El Sewedy Electric and Arab Contractors to build a $3 billion hydroelectric plant on a World Heritage site in the country, that will more than double Tanzania’s power generation capacity.

The project has faced opposition from conservationists, who say the construction of a dam on a river that runs through the Tanzania’s Selous Game Reserve, known for its elephants, black rhinos and giraffes, as well as many other species, could affect the wildlife and their habitats.

Energy Minister Medard Kalemani, said in comments broadcast on state television on Wednesday that the plant would have a capacity of 2,115 megawatts, calling it “a very huge dam project.” fused to give us money but thanks to improved tax collection, we are able to finance this project using our own resources,” he said.

Arab Contractors will have a 55 percent stake in the project and El Sewedy 45 percent, El Sewedy said on Tuesday.

El Sewedy said that the Egyptian stock market had halted trading of its shares pending details on the deal it had signed.

Covering 50,000 square kilometers, the Selous Game Reserve is one of the largest protected areas in Africa, according to UNESCO.

The World Wildlife Fund conservation group said in a report in July last year that the proposed 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.”

Officials at the WWF Tanzania office were not immediately available to comment on Wednesday’s deal.