Friday, April 11, 2008

BWM special economic zone, a slow moving economic investment project

TANZANIAN government is currently constructing a multi billion worth of an economic project zone which on its completion, will be hired to the prospective investors to run their businesses and later earns the government with money.

The project by the name of ‘Benjamin William Mkapa’s Special Economic Zone’ (BWM) is under the Ministry of Planning and Economic Empowerment. It was named after the President of the third phase government whose term ended in December 2005.

The project is located at Mabibo suburb on the outskirts of the city of Dar es Salaam and is expected to create several job opportunities for Tanzanians on its completion, and between 3,000 and 5,000 people are expected to be employed.

The project was established with the objectives to contribute to the acceleration of the growth of Tanzania’s economy to at least to the tune of between 8 and 10 percent increase respectively.

In early February this year, the Parliamentary Accounts Committee visited the site to see for its development. After having checked the important documents in files, the committee found that the project had spent over Tshs. 24 billion (US$ 22 million) against its initial budget the government had set aside of Tshs. 14 billion (US$ 12 million). This was for the first phase construction which was earlier on expected to be finished after 18 months’ time, but due to some inconveniences the construction process had been extended than it was earlier expected.

Despite of the excessive use of the money which is said to have been spent on this project up to now, and a report issued to the Parliamentary Accounts Committee, it was later discovered that, its development had slowed down due to misappropriation of funds targeted mainly through illegal purchase of the building materials and other things. This issue has not yet been made open to the general public as well as in parliamentary debate chambers.

However, one member of the Parliamentary Accounts Committee, Hon. Dr. Abdallah Kigoda (an MP for Handeni constituency), ordered the responsible persons and the assigned contractor to state truthfully about the expenditure incurred in this project. But it’s surprising to note that, the matter has been kept in drawing boards up to now.

Work in progress at Benjamin Mkapa economic zone at Mabibo in Dar-es-Salaam.

Dr. Kigoda was the former Minister of State responsible for Economic Planning and Privatization of the third phase government and who engineered the development of this project while in his capacity.

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