Dar es Salaam — The government has reiterated its plan to reduce power tariffs upon completion of the 2,100MW Stiegler's Gorge power project on Rufiji River, along the Selous game reserve.
Addressing participants during the signing of the construction agreement between the government and Egyptian firm Arab Contractors - the proposed project operator - President John Magufuli said the current power tariffs were high and unaffordable to majority of Tanzanians.
"The current power tariffs, which are priced at 7 US dollar cents per unit, are very expensive," he said.
He added: "The completion of the project will help to reduce power tariffs."
Currently, around 57 per cent of Tanzania power utility Tanesco's installed generation capacity is made up of 696.3 MW of thermal gas and diesel power plants, with the remaining 43 per cent represented by 561.8 MW of hydropower. The company operates a further 52.2 MW of off-grid diesel plants.
The colourful event, which was broadcast live by local TV stations, was held at the State House in the city. It was also attended by top Egyptian officials and other various government officials including Vice President Samia Hassan and Prime Minister Kassim Majaliwa.