President John Magufuli has witnessed the signing of contract to construct Rufiji Hydropower plant project at State House in Dar es Salaam early Wednesday.
The project is expected to produce more than 2100MW of electricity compared to the current 1560 MW produced from various sources.
The project worth 2.9bn USD equivalent to 6.5trn/- and will be implemented in the next 36 months by the Egyptian Arab Contractors Company.
President Magufuli said the project will be a great milestone to the government's vision to become a middle income country since the project is expected to boost industrial sector.
He noted that the project is friendly to environment conservation since it will reduce deforestation rate for domestic charcoal and firewood consumption in the country.
"Those who say this project isn't environmental friendly are lying; this project will actually help in preserving environment by cutting down current rate of 92pc of charcoal usage especially in urban areas including Dar es Salaam," he added.
He added that the project will create thousands of employment opportunities and increase industrial production hence pave way to penetrate in the international market.