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TPSF on gas policy: We'll exert more pressure
By Sylivester Domasa
3rd September 2013
Chairman of the Tanzania Private Sector Foundation (TPSF) board Dr Reginald Mengi (L) speaks at a press conference in Dsm yesterday. With him is TPSF Executive Director, Godfrey Simbeye.
The Tanzania Private Sector Foundation (TPSF) yesterday said it will continue to put more pressure on the government to see that it suspends plan to auction natural gas blocks slated for October this year.
It instead stressed the importance of expediting the process of putting in place the natural gas policy which will enable Tanzanians to participate in the gas economy.
The resolve follows a recent statement issued by the Energy and Minerals minister Prof Sospeter Muhongo which suggested among other things that Tanzanians were yet to ‘have the capacity and knowledge' to bid in the auctioning of the blocks.
TPSF maintains that the availability of the document would ultimately enable Tanzanians to take part in overseeing and owning this key natural resource.
Speaking in Dar es Salaam yesterday the new TPSF Board Chairperson, Dr Reginald Mengi, said "TPSF is not opposed to foreign investors participation; we need investors who can help the locals benefit economically from this crucial resource."
According to the chairman, TPSF is optimistic that the government will listen to its nationals and that it doesn't believe in the theory that the country's economy will be in the hands of foreign investors.
The chairperson said: "It is surprising to see a minister being happy with the situation that most of Tanzanians can only invest in fruit processing plants and not natural resources."
"We're very disappointed by this statement issued by the minister," he said, adding: "The minister has reiterated his decision not to meet with any Tanzanian to discuss the matter on grounds that he will be wasting his time."
He appealed to members of parliament to also exert pressure on the government to have the policy in place to ensure that Tanzanians benefit from the resource.
Seconding Dr Mengi, TPSF Executive Director Godfrey Simbeye said the foundation plans to write Energy and Minerals minister to express the need to discuss the matter for the country's benefit.
Citing experience of Mozambique and Nigeria, the director said both had put in place statutory documents before the bidding process started. They had also put in place a framework that allowed citizen participation in the sector.
While Tanzania has in place 43 trillion cubic feet (tcf) of offshore natural gas reserves, he said, Mozambique has discovered 200 trillion cubic feet of natural gas reserves. It was also putting in place mechanisms to ensure its nationals can participate in the sector.
"Nigeria has managed to have regulations (Nigerian Oil and Gas Industry Content Development Bill, 2010) to enable nationals to participate fully in oil and gas exploration," he noted.
The director explained that TPSF is concerned about how Tanzanians can take part in the entire process given that there is no guiding document.
On development of the sector, the chairperson said participation of Tanzanians in the gas industry should not be undermined.
He said the minister should support nationals to take part in the process instead of ‘discouraging' them by saying that their ‘capacity and knowledge' lies in investing in soft drinks.
"No country in the globe sidelines its nationals in the investment process. It must instead give them priority … We don't need to feel ashamed of having a document that gives Tanzanians priority. We will be ashamed if we lack such a document," he explained.
Last week, TPSF came out expressly urging the government to expedite the process of formulating the natural gas policy instead of proceeding to auction the country's blocks that have the resource.
The auctioning process is slated for October this year. The foundation said that if the ministry was keen on securing local participation in the bidding process, it had better halt the exercise.
Expressing dismay that offshore gas exploration in the southern parts of the country has predominantly been awarded to foreign firms instead of local ones; it said the latter had not been given priority.
SOURCE: THE GUARDIAN
