US$ 10bn Bagamoyo Port contract not signed yet


JF-Expert Member
Aug 2, 2010
December 21

A contract for the construction of a mega sea port that includes an export processing zone and industrial town in Bagamoyo to be funded by a 10 billion US dollars Chinese government loan has not yet been signed.

Minister for Transport, Dr Harrison Mwakyembe

Transport Minister, Dr Harrison Mwakyembe told Parliament on Thursday evening while responding to lawmakers’ observations which questioned validity of the project against the expansion of
Dar es Salaam Port and Construction of berths 13 and 14 at the prime port.

“We are still negotiating the 10 billion US dollar project,” Dr Mwakyembe pointed out. He dismissed arguments by legislators that it’s not wise to invest money in development of the new port while neglecting Dar port’s over 500 million US dollars expansion project.

“This project is not feasible and was clouded in a veil of corruption,” Dr Mwakyembe argued saying the ambitious project would have meant confiscating 160 meters of Kigamboni headland, shifting Kurasini Oil Jetty and disturbing undersea infrastructure near the port.

Dr Mwakyembe, however, revealed that construction work of berths 13 and 14 is currently in progress but the Chinese company contracted to do the work was dismissed. “I have officially written the Chinese

Embassy to inform them that their company will no longer implement the project,” the Kyela lawmaker noted.

Parliamentary Infrastructure Committee Chairman, Peter Serukamba questioned government’s commitment to improve Dar es Salaam port saying construction of berths 13 and 14 is long overdue. “We have ditched a 700 million US dollars project to expand Dar es Salaam Port and are now focusing on a 10 billion US dollars project,” Mr Serukamba commented.

Meanwhile, Parliament has been advised to send a delegation to Zambia to meet with their counterparts and discuss ways of improving the
Tanzania Zambia Railways Authority (TAZARA) which requires massive investment. Dr Mwakyembe informed Parliament on Thursday evening while responding to suggestions that TAZARA needs extra funding to be revived.

Dr Mwakyembe pointed out that his ministry and TAZARA’s management are collecting debts.

“We have so far collected 1.2 million US dollars in debts and we are still following outstanding payments from the Democratic Republic of Congo Railways, Zambia Railways and National Food Reserve Agency (NFRA).

“TAZARA needs massive capitalisation as its annual tonnage has dropped from 54 tonnes to 23 tonnes per annum,” the Kyela legislator stated.

Source Tanzania Daily News

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