High optimism as RUBADA receives a Stiegler’s Gorge Power Project proposal

The Chairman of the Rufiji Basin Development Authority (RUBADA) Board of Directors, Prof. Raphael Mwalyosi (second left) receiving a copy of a report and proposal of development of the Stiegler’s Gorge Power project from a Brazilian based Odebrecht International New Business Director, Mr. Fernando Soares in Dar es Salaam over the weekend.  At the centre is RUBADA Director General, Mr. Aloyce Masanja and the Brazilian Ambassador to Tanzania, Mr. Fransisco Luz (extreme left).

By a Correspondent, Dar es Salaam

Implementation of a huge Stiegler’s Gorge Power is becoming a reality after a report and proposal of development of the project has been completed and presented to the government.

The proposal presented over the weekend in Dar es Salaam follows a Memorandum of Understanding (MoU) of the long awaited project between the Rufiji Basin Development Authority (RUBADA) and Odebrecht International, a reputable dam construction company in the world six months ago.

“This is a very crucial stage,” the RUBADA Director General, Mr. Aloyce Masanja told journalists after receiving the proposal in an event that was witnessed by top Odebrecht staffs, some officials from the government of Tanzania and RUBADA’s management and members of the Board of Directors.

According to Masanja, the proposal will now give a clear picture on the implementation of the project.

The proposal touches mainly on Power Market Overview, Engineering Studies and Technical Proposal, Preliminary Social-Environmental Evaluation, Key Stakeholders, Stage 1 Risk Analysis and Financial Structure and Proposed Business Plan.

According to Mr. Masanja, the project financial requirement is at the tune of USD 2 billion but the figure may vary depending on the technology to be agreed at a later stage.

RUBADA, as a public institution is allowed by law to generate and supply hydroelectric power in the basin and will partner with Odebrecht, a private entity in a form of Public Private Partnership (PPP).

“The project is a multipurpose by nature in the sectors of agriculture, energy, fisheries, flood control and tourism,” he said.

Once completed, the project will have the potential to produce 2100 MW.

The Brazilian company reviewed Feasibility Studies that was earlier done by a Norwegian company, NORCONSULT in 1980 on the similar project but shelved later on.

The next stage after reviewing the proposal will be designing and doing Environmental Impact Assessment (EIA) while the third stage will be commencement of construction. 

On his part, the company’s New Business Director, Mr. Fernando Soares said that his company understands the importance of the project, not only for Tanzania but for the whole region.

“We are proud to be part of such important endeavor,” he said.

He said that Odebrecht can provide great value to their clients bringing the necessary engineering, and construction expertise, as well as proven local knowledge and motivation to pursue a well-balanced contractual relationship.

The Chairman of the RUBADA Board of Directors, Prof. Raphael Mwalyosi said the Brazilian company has done a great job.

“We are very happy, they have done a great job according to our expectations,” Prof. Mwalyosi said.

On his part, the Brazilian Ambassador to Tanzania, Mr. Fransisco Luz said that his country is very proud that Tanzania has decided to have a Brazilian experience in the area of dam construction.

It is estimated that the Stiegler’s electricity will be among the smallest production cost in Africa standing at 4 USD Cents per a kilowatt hour, including tax.

“There are more than enough reasons for stakeholders to support this project,” he said.

Odebrecht Company Limited is reputed to be involved in big and successful construction of big hydropower projects in the world.  It was involved in construction of the world’s second power project found in Brazil with the capacity to produce 14,000 MW.

The whole of the Rufiji Basin has the potential to produce 4,000 MW.

Brazil is said to have transformed her economy for the past 30 years from the low income country to a middle economy today.  More than 85 per cent of the country’s power comes from hydro sources.

Its portfolio includes more than 58,500 MW in construction works and services in the power sector.

With more than 65 years of experience, developing projects in 25 countries in 4 continents.  In Africa, Odebrecht has been working since 1984, employs more than 20,000 persons, has successfully delivered projects in 9 countries and has formed long lasting partnerships with various clients.

Odebrecht is ranked in 2012 as number 13 of the top 225 International Contractors and number 2 in Hydropower plants by ENR, one of the most prestigious engineering and construction publication in the World.

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