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- Feb 11, 2007
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TICTS contract review out soon
2008-12-08 11:26:19
By Joyce Kisaka
The outcome of the review of the Tanzania International Container Services (TICTS) 25-year port services contract will be officially known this month, The Guardian has learnt.
However, it remains unclear whether the government will revoke the hotly dubious 15-years contract extension that was made before the original 10-year contract was over in 2010.
A government negotiating team comprising representatives of the ministary for Constitutional Affairs, Finance and Economic Affairs and Infrastructure Development has until the end of this month to complete its negotiations with TICTS officials.
The two parties have already agreed that the wharfage fees will now be directly collected by the Tanzania Ports Authority.
This will be a departure from the existing arrangement whereby TICTS collects the wharfage money then remits it to TPA.
The Guardian has been reliably informed that there are three sticking points which are still under hot discussion.
The Minister for Infrastructure Development, Dr Shukuru Kawambwa, in an exclusive interview with The Guardian, said the outcome of the discussions would determine whether the TICTS contract would be revoked or not .
He said the review seemed to be taking too long but the government had deliberately allowed a thorough review that would result into a beneficial contract.
`It is not secret that the contract has shortfalls. A lot of concentration is needed during the negotiations otherwise the government will end up as a loser,` he said.
The minister said that in January next year, the government would announce amendments on the TICTS contract.
Asked if the government would be ready to revoke the contract clause giving TICTS exclusive rights to handle cargo at Dar es Salaam port, the minister would not commit himself, but only said that a decision would be made after the contract review had been completed.
Dar es Salaam port cargo handling services were leased in 2000 by the government to the International Container Terminal Limited (ICTL) of Manila.
The ten year contract was to end in 2010, but government, in a questionable move, extended the contract for another 15 years.
The National Assembly has recommended the termination of the 2005 illegal contract extension.
The House recommendations were prompted by a public furore over a revelation made by the Comptroller and Auditor General that there was gross violation of the Public Procurement Act (PPA) of 2004 in the process of extending the TICTS contract from the initial 10 years to a whopping 25 years.
It has been alleged that the TICTS contract was illegally extended by former president Benjamin Mkapa towards the end of his second and final term in office in 2005.
According to the CAG`s report for the financial year that ended June 30, 2007, the dubious extension of the lease contract for the lucrative container terminal at the port of Dar es Salaam was unlawfully executed.
Prime Minister Mizengo Pinda, during direct discussions with editors on May 12, this year, revealed that the government had owned up to the fact that the TICTS contract was lopsided.
``The Government has already given notice to TICTS for terminating the contract in the year 2010 and the remaining two-year contract period would be pegged to performance,`` Pinda said.
He said the government had come to the conclusion that the 15-year extension of the TICTS contract after 2010 was wrong, and had notified TICTS to that effect.
``The government has rejected the 15-year TICTS contract extension. We have said no. We said we have to go back to the original terms of contract,`` said Pinda.
``The two parties to the contract (TICTS and the government) are now discussing the agreement,`` he added.
SOURCE: Guardian
2008-12-08 11:26:19
By Joyce Kisaka
The outcome of the review of the Tanzania International Container Services (TICTS) 25-year port services contract will be officially known this month, The Guardian has learnt.
However, it remains unclear whether the government will revoke the hotly dubious 15-years contract extension that was made before the original 10-year contract was over in 2010.
A government negotiating team comprising representatives of the ministary for Constitutional Affairs, Finance and Economic Affairs and Infrastructure Development has until the end of this month to complete its negotiations with TICTS officials.
The two parties have already agreed that the wharfage fees will now be directly collected by the Tanzania Ports Authority.
This will be a departure from the existing arrangement whereby TICTS collects the wharfage money then remits it to TPA.
The Guardian has been reliably informed that there are three sticking points which are still under hot discussion.
The Minister for Infrastructure Development, Dr Shukuru Kawambwa, in an exclusive interview with The Guardian, said the outcome of the discussions would determine whether the TICTS contract would be revoked or not .
He said the review seemed to be taking too long but the government had deliberately allowed a thorough review that would result into a beneficial contract.
`It is not secret that the contract has shortfalls. A lot of concentration is needed during the negotiations otherwise the government will end up as a loser,` he said.
The minister said that in January next year, the government would announce amendments on the TICTS contract.
Asked if the government would be ready to revoke the contract clause giving TICTS exclusive rights to handle cargo at Dar es Salaam port, the minister would not commit himself, but only said that a decision would be made after the contract review had been completed.
Dar es Salaam port cargo handling services were leased in 2000 by the government to the International Container Terminal Limited (ICTL) of Manila.
The ten year contract was to end in 2010, but government, in a questionable move, extended the contract for another 15 years.
The National Assembly has recommended the termination of the 2005 illegal contract extension.
The House recommendations were prompted by a public furore over a revelation made by the Comptroller and Auditor General that there was gross violation of the Public Procurement Act (PPA) of 2004 in the process of extending the TICTS contract from the initial 10 years to a whopping 25 years.
It has been alleged that the TICTS contract was illegally extended by former president Benjamin Mkapa towards the end of his second and final term in office in 2005.
According to the CAG`s report for the financial year that ended June 30, 2007, the dubious extension of the lease contract for the lucrative container terminal at the port of Dar es Salaam was unlawfully executed.
Prime Minister Mizengo Pinda, during direct discussions with editors on May 12, this year, revealed that the government had owned up to the fact that the TICTS contract was lopsided.
``The Government has already given notice to TICTS for terminating the contract in the year 2010 and the remaining two-year contract period would be pegged to performance,`` Pinda said.
He said the government had come to the conclusion that the 15-year extension of the TICTS contract after 2010 was wrong, and had notified TICTS to that effect.
``The government has rejected the 15-year TICTS contract extension. We have said no. We said we have to go back to the original terms of contract,`` said Pinda.
``The two parties to the contract (TICTS and the government) are now discussing the agreement,`` he added.
SOURCE: Guardian