In 1998 the African Development Bank approved funding for a feasibility study that was conducted by the German consulting firm Lahmeyer.

In August 2002 the government decided by Decree to go ahead with the project, which was from that time called the Kandadji Ecosystems Regeneration and Niger Valley Development Programme.

The Local Development Plan was designed to facilitate the economic transition of displaced persons in order to restore their standard of living or even enhance it, beyond mere resettlement.

Gudzenchuk, announced "For the first time a Russian company is involved in building such a large project in West Africa at the expense of foreign investors.

The hydroelectric plant will have a capacity of 130 megawatt, and a 132 kilovolt high voltage line will be built over 188 km to Niamey.

According to the Prime Minister at the time of initiating construction, Seyni Oumarou, "no other development project will have sparked so much long term interest or such high expectations".

Niger imports almost half of its electricity consumption of 440 million kilowatt-hours (1.6×109 MJ) (2007) from neighboring Nigeria, which itself suffers frequent power cuts.

[21] Other expected benefits are related to "drinking water supply, sanitation, improved flood recession cropping, grazing and fishery".

[22] The financial costs of the broader project, including the infrastructure for irrigation and drinking water supply, were estimated at US$670 million by one source in 2007.

[30] However, according to the 2008 environmental assessment of the project, the "modifications of the quantities of water flowing into the Niger River as a result of the Kandadji dam will be minimal in Nigeria".

The resultant economic sanctions imposed by the European Union, the World Bank and ECOWAS made it impossible for CGGC to pay its subcontractors and its workers.