Tanzania, China Sign 4.8trn(3billion $)/- Pacts


JF-Expert Member
Aug 2, 2010
Thu, Sep 22nd, 2011
| Tanzania


NDC board chairman Chrisant Mzindakaya (R) exchanges documents with National People`s Congress of China official Liu Canglong after signing a joint venture agreement between NDC and Sichuan Hongda for implementing Mchuchuma and Liganga iron and coal projects.

and China have agreed on the implementation of a coal-fired power project at Mchuchuma and an iron and steel one at Liganga in Ludewa District, Iringa Region, worth a combined US $3 billion (about 4.8trl/-).

The agreement to that effect was signed at a ceremony held in Dar es Salaamyesterday at which National Development Corporation (NDC) board chairman Dr Chrisant Mzindakaya representedTanzania and his Sichuan Hongda Group counterpart, Liu Canglod, China.

Vice President Dr Mohammed Gharib Bilal, who graced the event, said implementation of the two projects was sure to accelerate
Tanzania’s economic development and uplift the people from poverty as envisaged in the country’s Vision 2025.

Other prominent people at the function included Chinese Ambassador Liu Xinsheng, Members of Parliament, ministers, several other government officials and a Chinese government delegation.

Dr Bilal expressed hope that the projects to substantially boost and stabilise power generation and supply in Tanzania and unlock the country’s mineral potential.

He noted that the iron ore extraction said, would mainly seek to produce iron and ultimately expedite the growth of the country’s steel industry.

“The production of electricity and iron and steel from these projects will also lead to the development of key infrastructure, including Mtwara Port, the Mtwara-to-Mchuchuma railway and the erection of more power transmission lines,” he said.

The Vice President urged NDC and all other relevant authorities to draw up a strategy to ensure that the infrastructure was developed in a synchronised fashion to maximise the benefits arising from exploitation of the resources.

Alongside serving the projects, he said, the infrastructure so developed would help to spur the further development of other economic activities along the Mtwara Corridor.

“That will definitely make the long-envisioned Mtwara Corridor a reality and a bustling economic region in Tanzania,” he noted, adding that the government would do all its best to facilitate implementation of the projects.

Retracing relations between Tanzania and the People’s Republic of China, Dr Bilal talked of “a long history with major accomplishments”.

He said the main vivid symbol was the Tanzania Zambia Railway Authority (Tazara), with the others including Urafiki (Friendship) Textile Mill, Ubungo Farm Implements, Kiwira Coal Mine and the recently completed ultramodern National Stadium in
Dar es Salaam.

Sichuan Hongda Group board chairman Liu Canglond said his company would start work on the two projects “soon after completion of the preparatory activities”, adding that it has already set aside USD600m as funding for the initial stages of the projects.

“We are sure to produce enough iron and steel for local consumption, sustainable and reliable power for domestic and industrial use while also supporting technology transfer, creating employment opportunities and stimulating the development of infrastructure,” he noted.

Dr Mzindakaya meanwhile explained that work on the projects would start in three years’ time at the latest with the generation of at least 600MW, adding that more than 40 companies bid for the projects following a tender floated in 2007.

He revealed that implementation of the power project would run in four 150-MW phases.

In earlier remarks, Industry and Trade minister Dr
Cyril Chami said implementation of the project was expected to provide enough power and coal for the extraction of iron ore.

He added that the ministry had the responsibility of industrialising Tanzania and making sure that the industrial sector contributed more significantly to the national economy.

The country’s industrial sector currently grows at an annual 9 per cent, while Vision 2025 wants this to rise to 15 per cent.

Experts say Tanzania has coal reserves which could be extracted for more than 300 years.

NDC and Sichuan Hongda have also formed a joint venture company known as Tanzania China International Mineral Resources to oversee all these operations in Tanzania.

By Felix Andrew, The Guardian

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