Russian company invests US$700m in Tanzania’s hydro sector

Russian power and construction company Zarubezhstroy Corp (ZARS) is investing US$700m in a hydropower plant southern Tanzania. The five-year undertaking will see the construction of a hydropower complex in Rumakali, Iringa Region, which is expected to meet 20-25% of the country’s hydroelectricity requirement. Initially, the Rumakali facility will feed around 222MW directly into the national grid. Upon completion, the project is understood to become the largest independent hydropower venture in Tanzania.

Tanzania remains over-dependent on hydropower generation, resulting in acute power shortages as droughts affect power production. However, moves are afoot to reduce this dependency as the country is currently seeking investors to fund wind farm projects such as Makambako.

ZARS has power generation operations in a number of African countries, including Uganda and Libya.