TALKS between the governments of Tanzania and Dubai for identifying areas for investments in Tanzania’s ports are expected to end in December, this year, the Parliament was told.
The ongoing talks came after the two governments signed the Intergovernmental Agreement (IGA) on October 25, 2022.
Deputy Minister for Works and Transport, Mr Atupele Mwakibete, told the august House on Friday, during the question-answer session, that the implementation of the commercial contract was in different phases.
The first step was to sign the IGA between the two countries, which had already been signed.
Signing of the agreement created grounds for the two parts to start discussion over area for investments.
“After signing of the agreement, talks will continue while observing laws, regulations and the country’s procedures in ensuring that the envisaged investments are beneficial,” Mr Mwakibete stated.
His explanation was a response to Mlalo MP Rashid Shangazi (CCM)’s question who wanted to know when the implementation of the agreement entered between the government through the Tanzania Ports Authority (TPA) and the Dubai Port World would be carried out.
The TPA and DP World signed the Memorandum of Understanding (MoU) in February this year, followed by the IGA last October.
The DP World, an Emirati multinational Logistics Company based in Dubai, United Arab Emirates, signed the MoU worth 500 million US dollars with the TPA to finance various projects aimed at improving efficiency of the country’s ports.
The company specialises in cargo logistics, port terminal operations, maritime services and free trade zones.
The agreement for the grant was signed at the Dubai Expo 2020 between TPA Director General Eric Hamissi and DP World Chief Executive Officer Sultan Ahmed Bin Sulayem.
Meanwhile, Deputy Minister Mwakibete responded to a question by Eric Shigongo (Buchosa-CCM) who sought to know when the government would construct, at tarmac level, the Sengerema – Nyamazugo–Nyehunge-Nkome road section.
In his explanation, Mr Mwakibete said the government, through the Tanzania National Roads Agency (TANROADS), was at a stage of obtaining a contractor for constructing the said 54.4-kilometre road section at the tarmac level.
The tender was opened on August 30, 2022 and the analysis of the tender was ongoing and the contract for construction works is expected to be signed late this month.
Again, the deputy minister informed the House over the development on the Kigoma port expansion project which is funded by the European Investment Bank (EIB) and the government.
He said the project stalled because the EIB delayed issuing ‘No objection’ certificate so as to acquire a contractor to implement the project.
“The funder has now already given the No Objection for the project to begin. Currently, the draft of the contract is in the office of the Attorney General for vetting,” he noted.
Upon the vetting and signing of the contract the construction works will start.