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Kagera Power Project Hits a Snag

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by Invisible, Aug 18, 2009.

  1. Invisible

    Invisible Admin Staff Member

    #1
    Aug 18, 2009
    Joined: Feb 11, 2006
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    Written by Esther Nakkazi

    Land and taxation issues are delaying a cross-border hydropower project between Uganda and Tanzania.

    This could set an ominous precedent for investments promoted under the East African Community.

    The 10MW Kikagati hydropower project on River Kagera at Kikagati in Uganda will serve Murongo in Tanzania. But it has stalled for lack of appropriate land laws and double taxation on the investor.

    "We have done everything to enable the investor go ahead with the project. Our Tanzanian counterparts came up with some issues that we are sorting out," said Henry Bidasala, Assistant Commissioner in Uganda's Ministry of Energy and Mineral Development.

    Tanzania wants an environmental impact assessment on its side of the Kagera. Also, the investor has to have a water rights permit and the land has to be demarcated properly. An environmental impact study was carried out only on the Ugandan side.

    Ministry of Energy officials in Uganda say Tanzania needs to give land for both a temporary road and a water dam, as well as permission to use the Kagera bridge to transport construction materials.

    About 100 square metres are needed for the road and 4,000 square metres for the dam.

    The dam will guard against flooding and displacement of the surrounding community.

    But this is not possible, as all land in Tanzania belongs to the government and is held in trust by the President -- in this case President Jakaya Kikwete. To get the land, the investor has to go through the Tanzania Investment Authority and, if the project is above $300,00, pay taxes.

    The cost of the project has already doubled to $25 million, and the delay is affecting over 2 million people who stand to benefit.

    "This project was captured in Uganda and the investor has already paid taxes there. This will be double taxation," said Mr Bidasala. The Chinese company Shan Sheng International is the investor.

    Elaine Kiew, the manager of Shan Sheng, has been rpursue the project for four years now.

    She could not be reached for comment but officials say she has carried out the demarcation and environmental impact study on the Tanzanian side.

    Technical teams from Tanzania are supposed to approve the data.

    Sources in Tanzania said they have no appropriate law in place to enable the investor get a permit.

    This raises questions on the cross-border projects promoted by the EAC.

    Under the EAC cross-border electrification programme, all countries in the community that have electricity on border towns are obliged to supply the other side of the border.

    Border towns can access electricity from the nearest grid.

    Tanzania is supplied by Kenya at Namanga and Kenya by Tanzania at Lunga Lunga.

    Officials of the EAC said the Secretariat tried to accelerate the project by designing a memorandum of understanding to be signed by the two ministers in charge of East African affairs for Uganda and Tanzania.

    Uganda signed the MOU in April last year but Tanzania is yet to do so. The EAC is in the process of developing a regional policy on cross border electrification. A preliminary draft policy is already in place.

    Uganda has a number of other regional interconnections waiting for co-financing.

    They include the Mbarara-Mirama Hills-Birembo (Kigali), Bujagali-Tororo-Lessoss (Kenya), Nkenda-Mpondwe-Beni-Bunia (Democratic Republic of Congo) and Masaka-Mwanza (Tanzania).

    Under the rural electrification programme, Uganda has constructed small hydropower dams at Bugoye (13mw) in Kasese, Mpanga (18kw) in Kamwenge and Buseruka (10mw) in Hoima. Ishasha (5mw in Kanungu, is in progress.

    As a result, the level of rural access to electricity is up 6 per cent from 1 per cent when the programme started in 2001.



    Source:

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  2. K

    Koba JF-Expert Member

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    Aug 19, 2009
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    sad news indeed,hope wahusika wata solve hii haraka sana maana haihitaji FEDHA ZA KIGENI!
     
  3. MaxShimba

    MaxShimba JF-Expert Member

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    Aug 19, 2009
    Joined: Apr 11, 2008
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    But this is not possible, as all land in Tanzania belongs to the government and is held in trust by the President -- in this case President Jakaya Kikwete. To get the land, the investor has to go through the Tanzania Investment Authority and, if the project is above $300,00, pay taxes.

    Did you know about all land in TZ belongs to the Gov and is held in trust by the President?

    Tanzania Investment Authority, this is where the trouble and all bureaucracy is.
     
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