JK outlines projects for Mtwara, Lindi

President Jakaya Kikwete has outlined projects to be implemented in Mtwara and Lindi regions, saying residents of the two regions don’t need to panic and wreck havoc. He mentioned projects to be implemented as including power station, Mtwara and Lindi Ports, fertilizer and cement factories, roads projects, gas processing plant as well as some education programmes. In his end-of the month address to the nation the president was forced to speak at length on the development projects in the regions to appease the anger of southerners following incidents of chaos that culminated in deaths and destruction of property worth billions of shillings. The residents of the two regions are demanding a fair share from gas proceeds. They are protesting against the government decision to build a gas pipeline from Mtwara to Dar es Salaam to boost power generation as well as other uses. In his speech yesterday President Kikwete said only 16 per cent of the gas extracted in Mtwara would be ferried to Dar es Saalam via the gas pipe line while the remaining 84 per cent would remain in Mtwara for various uses, including exportation. He also notes that, it is not true that, his government does not pay attention nor having an interest to develop southern regions. Secondly that his government’s intention to construct a gas pipeline from Mtwara to Dar es Salaam does not deny an opportunity for southern regions to benefit from the discovered natural gas. He said plans are underway for the expansion of Mtwara port so that it might be able to serve the need of gas exploration at the sea, and also it should be in a position to serve various economic development related gas activities in the region. After he had negotiated with gas drilling companies and had realized there was a need to have Mtwara port expanded and rebuilt later to serve the purpose. He said adding that, the port authorities assured him of the implementation as directly ordered. In order to facilitate the move, the President has assured that, already there is an areas which has been added to facilitate the expansion program from hectares of land from 70.68 to 2,693.68. He further clarified that, there is also another free space for the Dangote company and those for other gas companies currently doing exploration. Either he said there is a process of expansion of the current port which would involve the construction of new gate to another area of Msanga Mkuu which is in various stage of preparations and implementation. On the side of Lindi region the President noted that plans by his government to expand its port side has developed tremendously, quoting Deputy Minister for Transport Dr. Charles Tizeba to have confirmed the ongoing progress of the project at the port as well as that of Kilwa both of which are in good progress. He also noted that, in Lindi one of the companies which had discovered gas at the sea have decided to build the port and a centre for purifying gas and later to be transported out in other regions as it in Mtwara region. On the side of the cement processing plant which is expected to be built by Dangote company had asked for an area more than what it had acquired. Their views was that, an added area had better good raw material to be used for the manufacturing of cement, and in view of this, they had to wait to get full ownership. On the side of Fertilizer processing plant, many investors have emerged since 2008 up to now. There has been a process of scrutinizing better investors with good qualifications thatbwould be recogniosed. Two things have delayed the whole process to start. The President noted that, one is the investors and the Artumas company whicgh had entered into partnership with the National Petroleum Development Cooperation (TPDC) by then which had failed on contractual terms on the purchase of the gas. Investors wanted the price of the gas to be reduced for them, but the Artumas and TPDC companies were not ready to reduce the intended price more than what they had already reduced, which the investors still had seen was not enough to run the production of required fertilizer. Another reason cited was on the financial constraint following the global economic collapse in 2008/2009 whereby the Artumnas company was affected and as a result of this was forced to sell all its shares to another investor. Either he said that was not ready to allow anybody in his government to repudiate the needs of the people of the Lindi and Mtwara and other southern regions as it would not be fair to do so for the national interest. Instead the President has reminded them to take time to remind their causal responsibility to enlighten the public on matters.

President Jakaya Kikwete of the United Republic of Tanzania

Earlier on the Minister for Energy and Minerals Professor Sospeter Muhongo said yesterday in Dar es Salaam that, the government has insisted that its plan to construct a gas pipeline from Mtwara to Dar es Salaam remains intact, urging residents from Lindi and Mtwara regions to remain calm. The call by the government comes amid complaints by those residents in the regions who want to change the government’s plans which is inevitable as it’s already contracted. He said the agreement will remain the same as well as the planned dates for the commencement of the project. Professor Muhongo told a press conference that, “the construction of gas pipeline project will be built as it was planned earlier and added that, Tanzanians are to remain calm at this time as the government is finalizing the logistics to end the perennial problem of electricity in the country. However, he also noted that, the construction of a detailed designed project once it starts will be built in such away that it will enable residents of the two regions to use the gas without any resistance, and added that, their worries about the matter creates problems for nothing. According to Professor Muhongo, $ 1.22 billion for pipeline construction which is loan from china with interest rate of 1.5 per cent will be paid for the period of 20 years after grace period of seven years. He further noted that when the construction starts, no citizen who will be relocated from their position as per the earlier feasibility study carried shows that, the pipelines would be laid systematically without interactions. Speaking in the same press conference the Chinese Ambassador accredited into the country Lu Yuoqing said their goals are to turn the gas natural resource that Tanzania is blessed with in order to benefit the welfare of the people in the country. Elaborating over the issue from the economic point of view, he said that gas is a crucial commodity that would increase the national market economy which in turn will increase the national economic growth. He said that, the construction of the gas pipeline to Kinyerezi on the outskirts of the Dar es Salaam city will enable industries in the city get electricity to run their processing manufacturing plants, hence creating the wealth of the nation. “Transferring natural gas from Mtwara to Dar es Salaam will bring many business activities along the pipeline for the whole period the pipeline will be under construction”, he said adding that, local people in two regions will have an opportunity to create favorable environment for investment and by doing that will create job opportunity for the local people. The Ambassador also noted that the gas project will not only transform the country into a great economy but will also help to maintain good relationship between Tanzania and China as the friendship of the two countries started long time since independence. In another development, the Government of China has sponsored scholarship to Tanzania students to study matters related to gas energy in China at Energy University in China. The Ambassador noted that, in his country there are many Universities which are very strong in technology about energy and gas. He said his country has welcomed the first batch of 20 students from Tanzania in this academic year to engage in study areas of energy and minerals. The sponsorship will include tuition fee, allowance and all expenses that will be covered by Chinese government. In response to the study issue, the Minister of Energy Professor Muhongo countered the Ambassador’s remark and said that the requirement for students will be released by the Ministry to the public next week. He has however encouraged students to come to the Ministry to engage for the competition of which the name of the winner will be released to the general public in April this year. He added that for those student intending for masters program are required not to be older than 35 years and for PHD not elder that 40 years in order to get admission.