* Japanese firm to build $414 mln power plant in Tanzania
* Project to be jointly financed by other Japanese institutions
DAR ES SALAAM May 31 (Reuters) - Tanzania has signed an agreement with Japan-based Sumitomo Corp to build a 240-megawatt natural gas-fired power plant, the Tanzanian president's office said, as the east African pushes to alleviate power problems.
The office said Sumitomo will set up the plant on the outskirts of Tanzania's commercial capital Dar es Salaam, at a cost of 675 billion Tanzanian shillings ($413.4 million).
Sumitomo will implement the project jointly with other Japanese companies, including Japan Bank for International Cooperation, Nippon Export and Investment Insurance and Sumitomo Mitsui Banking Corp.
Although Tanzania has vast deposits of natural gas, it has been plagued by frequent power outages, which led to a slowdown in economic growth in 2011/12. ($1 = 1633.0000 Tanzanian shillings) (Reporting by Fumbuka Ng'wanakilala; Editing by George Obulutsa and David Holmes)