The construction of the $800M Kandadji hydroelectric project in Niger has been halted by the Chinese contractor Gezhouba Group which claims that most of its funds have been frozen due to the current sanctions after the coup.
In a letter dated 7th August, the group said it would halt operations and lay off its workforce. They added that they will re-deploy workers again if finances are secured.
The dam, upon completion, is expected to boost the country’s grid by 50%.
Niger’s population has experienced a vast lack of electricity with only 4.3 million people having access to energy as 90% of its population uses wood as a source of energy.
The recent sanctions by the regional Economic Community of West African States ECOWAS has cripple Niger’s economy with donor and other multinational organizations cutting off their links.
The dam was also expected to help control the Niger River which will make downstream irrigation possible during the prolonged dry seasons.
Its construction was under discussion since the 1970s.
The dam was expected to be completed in March 2026 and produce over 130MW of electricity that would be distributed both internally and in the neighboring countries.