Tanzania’s Stiegler’s Gorge Dam, due to be built on a UNESCO World Heritage site, will cost more than double the government’s estimates, an independent study showed last week. In December, Tanzania signed a deal with two Egyptian companies, El Sewedy Electric Co and Arab Contractors, to build the Sh300 billion ($3 billion) hydroelectric plant.
Joerg Hartmann, an independent expert, and assessor on the sustainability of hydropower projects said the dam was likely to cost Sh758 billion ($7.58 billion) once financing and other costs were taken into account, rising to Sh985 billion ($9.85 billion) on account of cost overruns associated with such projects.