By Michael Haonga 29th April 2011 Rufiji Basin Development Authority (RUBADA) and a Chinese firm known as SINOHYDRO yesterday signed a memorandum of understanding (MoU) for the development of a hydropower plant at Mpanga river falls in Morogoro Region. The plant expected on stream in two years time will generate some 165MW of power. The MoU was signed in Dar es Salaam by the RUBADA Board of Directors Chairman Professor Raphael Mwalyosi and the SINOHYDRO Regional Director Qin Chao. The function was witnessed by the Authority's Director General, Aloyce Masanja. The Mpanga river is a tributary of the Kilombero river starting from Kipengere Mountains enclosing a Catchment area of about 2,546 kilometres with a dam site located at a position encompassing a watershed area of some 2,020 square kilometres. Speaking to journalists shortly after signing the MoU, the RUBADA Director General said construction work is to cost USD427 million and that the power generated would be sold to TANESCO for the national grid. He said the Exim Bank of China had agreed to finance the construction of the project which will also generate other socio-economic developments such as agriculture as well as availing power to villagers close to the project.