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China, Tanzania Sign Energy & Housing Contracts Worth $1.7 Billion

China, Tanzania Sign Energy & Housing Contracts Worth $1.7 Billion

China’s largest power transformers manufacturer, Tebian Electric Apparatus Stock Co Ltd., will earn a substantial chunk of the $1.7 billion in energy contracts recently signed by Tanzania and China, Reuters reported.

“The government has today signed seven agreements with six Chinese companies worth $1.7 billion, which will be invested in power plants and construction of residential and commercial housing projects,” Mizengo Pinda, Tanzania’s Prime Minister said in a statement outlined in the article.

For $692.7 million, Tebian Electric will take on the task of constructing a 400 kV power transmission line in Tanzania. In addition, the China Poly Group Corporation and China Railway Jianchang Engineering Company Ltd (CRJE) have signed contracts worth $700 million to carry out commercial property development.

According to Reuters, China — which has had significant involvement in Tanzania’s oil and gas — will also be spearheading the construction of a 330-mile natural gas pipeline spanning the distance between Dar es Salaam and the country’s south eastern region.

In July, China Power Investment (CPI) and Tanzania power company Tanesco signed a $300 million power deal which will support the Dar es Salaam-based Kinyerezi plant III, set to generate 600MW of energy, according to IPP Media.

“Our government is aware of the problem facing Tanzania that is why we have decided to enter into agreement to generate power,” Lu Quizhou, CPI president said in the report. Officials hope that the plant will stabilize power reliance across the country.

Aside from power plants, China may soon invest in natural gas exploration blocks ultimately to develop more projects, the Reuters report said. Sichuan Hongda Co. Ltd of China is currently working through a mining contract implemented in 2011.