Tanzania petroleum industry in a confused stare

THERE is confusion in Tanzania’s petroleum industry following a recent decision by the state-run Petroleum Bulk Procurement Agency (PBPA) to reinstate a Nigerian oil trader to import the item under the Bulk Procurement System (BPS). The troubled firm, Sahara Energy Resources DMCC, has been at loggerhead with authorities over importation of sub-standard petroleum products twice in less than six months, making it an offence under the Petroleum Act, 2015 and its legislation. The legislation clearly states that any supplier who supplies a petroleum product that is not in conformity with approved specifications shall be blacklisted and shall not be eligible to bid for importation of petroleum products into Tanzania for a period of not less than six months and not more than five years. While the legislation is crystal clear, Sahara Energy had acted ‘with impunity’ as it has not been penalised over the unlawful activity. Records still ring on oil marketing companies that Sahara was at first suspended to offload over 37,000 metric tonnes of sub-standard petrol at the Dar es Salaam port after winning a tender last December, to supply the country petroleum product through February. The most recent was in May when the same firm was granted contract by the same agency, just to import contaminated Jet A-1 fuel, irking Energy and Minerals Minister, Prof Sospeter Muhongo. Fresh details gathered by this newspaper shows that the agency had made a U-turn by reinstating the troubled firm to continue taking part in BPS tenders. According to the letter signed by PBPA Acting Executive Director, Mr Michael Mjinja, dated July 26 to Managing Director of Sahara Energy Resource DMCC and seen by the ‘Daily News’, the former allowed the firm after reports that it had evacuated contaminated JET A1 ad cleaned all tanks and pipelines. “Your commitment to adhere to the Tanzanian laws, rules and regulations and cooperate with the government … therefore, the agency had decided to reinstate you to participate on BPS tenders,” read part of the letter. Mr Mjinja admitted when contacted yesterday knowledge of the letter but remained tight-lipped on why the agency did not take legal measures against the troubled firm. Energy and Water Utility Regulatory Authority (EWURA) immediately said it had written to PBPA an order demanding the agency to explain on the regulations faults. “We have written them (PBPA) an order seeking clarification over the faults. EWURA has also directed the agency to withdraw its directives to the Nigeria-based firm, allowing it to take part in BPS tendering,” EWURA Corporate and Public Affairs Manager Titus Kaguo said. Mr Kaguo went on to note that the regulator had acted as a quasijudicial entity in issuing the order, warning that should the agency fail to adhere to it, it shall be subjected to serious legal action. A senior official in the Ministry of Energy and Minerals told the ‘Daily News’ that the agency had failed to abide by the government laws implying a cocktail of reasons behind such malpractice. “It’s either the agency had pocketed some bribes to give Sahara energy a green light,” she said on condition of anonymity calling on for serious investigations into the matter. Mr Mjinja, however, declined receiving any letter from the regulator. He advised the reporter who was earlier granted appointment to write down the questions on the matter for him to respond at his ‘reasonable time’. Observers in the oil industry rushed to question why the authority had not implemented the 2015 law against the defaulting oil company. Section 171 states that any person who contravenes any provision under this super part commit an offence and shall be liable on conviction to a fine not less than 5m/- or 20 per cent of the value of the total consignment, whichever amount is greater or imprisonment for a term not less than two years or both.

Prime Minister stresses measures on sugar production in the country

Prime Minister, Mr Kassim Majaliwa, has instructed sugar producing factories to put measures in place, which will ensure that sugar production capacity in the country stands at 100 per cent by 2020. Mr Majaliwa issued the directive in Morogoro yesterday when he visited the Mtibwa Sugar Factory where he underscored the need for local industries to increase production and avoid unnecessary imports. The PM said the government was currently capitalizing on strengthening local industries, insisting that it was high time sugar industries stepped up production to tackle the scarcity. “I understand that currently, the sugar demand in the country stands at 400,000 tonnes per year; but I have directed the Tanzania Sugar Board to sit together with experts from the Ministry of Agriculture, Livestock and Fisheries to identify the amount of sugar required in the country,’’ he added. Mr Majaliwa said the government had put measures in place to protect the local industries by imposing more tax on imported products that can be produced locally including sugar. He said local industries should strive to produce more. Currently, the country has sugar production capacity of 320,000 per year while the required amount of sugar stands at 420,000 tonnes, meaning there is a scarcity of 100,000 tonnes. Winding up debate oan the 2016/17 budget estimates for his office in April, Mr Majaliwa noted that there was a stock of sugar of about 37,000 tonnes in the country, which he said was in the market. He said the government had already ordered sugar to cover the deficit, adding that the state was avoiding ordering a huge consignment to avoid crippling local industries. However, Mr Majaliwa added, the government was putting measures in place to ensure that there was enough sugar production to avoid importing the essential commodity. The premier yesterday asked owners of sugar factories to provide incentives to farmers by purchasing their sugarcane at better prices and pay them on time for them to reap maximum benefit from their products. Earlier, when briefing the prime minister, the factory’s Senior Public Relations Officer, Mr Ibrahim Juma, said the company was currently producing 20,000 tonnes every year and expected to increase the amount to 70,000 by 2021. Mr Juma said sugar production at the factory went down due to importation of sugar from outside the country, commending the government for its decision to seal loopholes for illegal importation of the commodity. He added that plans were afoot to extend farms at the factory by 400,000 hectares to fulfill the government’s dream to have enough sugar in the country and avoid importation.

Corruption in health sector grows higher

UHURU Torch National Race Leader George Mbijima has condemned corrupt practices in the health sector, asking public servants to observe professional ethics and refrain from the ills in service delivery. Mr Mbijima was speaking at Bwanga Health Centre in Geita region where he, among other activities, launched the new maternity building with operating theatre, the courtesy of Amref Health Africa, Tanzania Branch. He said there was a time corruption was rampant in the health centre to the extent of staff refusing to offer services unless they receive some tokens from the patients. “Corruption is an enemy to justice but it becomes more dangerous when it thrives in such sensitive sectors like health. Please observe professionalism at the highest level possible,” he said, citing other unethical behaviour as stigma to patients with permanent diseases like HIV/AIDS. Mr Mbijima expressed concern over increasing malaria related cases and deaths, warning patients against snubbing malaria doses for alcohol consumption. He counseled youths, advising them to get rid of narcotic drugs which impede their active participation in economic activities. The race leader thanked Amref for the donation of the new facility that will boost Health Centre’s capacity to serve the population with specialised services including surgical operations. Bwanga Health Centre Officer in Charge Deogratias Rubanzibwa said the availability of the operating theatre will ease the burden of referring patients to the District Hospital, which is 60 kilometres away from the centre. Dr Rubanzibwa however said the facility still faces critical shortage of essential supplies like drugs manpower, expressing optimism that the problem might end as the centre transforms from rural to urban set up. He decried the financial challenge due to cost sharing policy, noting that majority poor patients at the centre were being attended to free of charge. “We are implementing the government policy where children under five, pregnant mothers and elders are treated freely but in my view we are losing a lot compared to the few patients paying for the services,” he said. According to Dr Rubanzibwa, cost sharing arrangement earns the centre about 2m/- monthly contributed through Community Health Fund and National Health Insurance Fund.

New government recruitment system in offing

THE government has turned-down a pilot scheme used to employ civil servants, especially retired and redundant officials, to government jobs resolving such posts to be filled through the public service recruitment system. Prime Minister Kassim Majaliwa issued the directive in Morogoro on Sunday shortly after visiting the region for a three-day official tour. According to the PM, the system will allow public servants access their notable benefits other than being re-employed using two-year contracts. Posts such as driving, is now under the system, he said “There is no need to council to offer contact employments to such kind of jobs.” But the prime minister allowed councils to re-employ retired civil servants to on contractual terms, especially in the field of professional science teachers. 

Tanzania's Prime Minister Kassim Majaliwa

The premier, however, directed the council to thoroughly undertake an assessment to find the exact number of individuals employed under such arrangement. Speaking on phantom workers, Mr Majaliwa reported that the special identification exercise to establish the number of ghost workers ends this month while action will be taken with immediate effect. Morogoro Region Commissioner Dr Stephen Kebwe said the region was still reviewing its workforce through its payroll. Already, he said, the region has revealed 315 phantom workers which caused 2.132bil/- in loss to the government. Meanwhile the Prime Minister said the government will not hesitate to fire leaders who happen to be a burden in executing various development projects. “The government has allocated funds for development projects. But some leaders are misleading the public about the projects. All directors who will be found gracing such false statements will soon find themselves jobless.” He took the opportunity to warn all executive directors across the country to abide by the new directives.

Muhongo reveals new investment plans in Lindi region

THE Minister for Energy and Minerals, Professor Sospeter Muhongo, revealed last week that t the government will invest at least 30 billion USD (over 60 trillion/-) for the construction of a gas processing plant in Lindi Region. He said the government is already embarking on the grand plan and that Lindi residents and Tanzanians in general should expect economic revolution in few years to come. Prof Muhongo was speaking during the official launch of the Nanenane exhibitions at Ngongo grounds in Lindi municipality. “I would like to ensure Lindi residents and Tanzanians in general that our economy is going to grow at a high speed, we are going to invest at least 30bn USD in the construction of gas processing plant,” he said. However, the minister asked the public to remain calm as the government continues to set plans for the grand project. He said the project is likely to take many years because it needs huge amount of money, high skilled and experienced personnel as well as good supervision. Prof Muhongo said the government will be required to construct about 200 kilometres of gas pipes from the sea to the plant. “This is not an easy job; it will take some years. We are supposed to bring the gas from the sea. It is between 100 and 200 kilometres. Therefore, we are supposed to construct a gas pipe line from the plant to sea,” he said. According to the minister, upon completion of the project, the government will be able to process gas and thus boost the country’s economy. “I can tell you today that in the few coming years, Lindi and Mtwara will be the country’s economic hub. All investors are eying at Lindi and Mtwara because of gas and other resources,” he said. Prof Muhongo urged Lindi residents to be ready for big investments in the few coming years. “I am asking you to get ready for the economic revolution. You must be ready to exploit opportunities. This is your time,” he told them. He said the project is likely to take up to 40 months. On the proposed fertiliser plant, the minister said the government is planning to build the plant at Kilwa in Lindi Region. He said the project has been estimated set to cost 1.9 billion USD upon completion, adding that it will provide employment to more than 5,000 Tanzanians. “The fertiliser plant will employ more than 5,000 Tanzanians. It is also set to produce at least 3850 tonnes of fertiliser per day,” Prof Muhongo reported. He said the project will be implemented through the Tanzania Petroleum Development Corporation (TPDC) by Minjingu Company and Germany, Pakistan and Denmark-based companies. “I would like to ask you to be patient. Good things are coming, everything will be ok. let us set strategies on how to utilize these opportunities,” he said. The project is also expected to increase earnings for the government through consumption of natural gas while at the same time provide opportunities to improve such sectors as health, aviation, sea ports among others. Since the discovery of natural gas in Tanzania, the economy has witnessed tremendous growth, with 70 per cent of power generation coming from gas, which is currently serving more than 30 industries in Dar es Salaam.

ROAD CARNAGE A SERIOUS ISSUE IN TANZANIA

Road carnage has of recent years become a serious issue in Tanzania as drivers do not want to abide by the laid down traffic rules and regulations set to ensure safety, or if are there but are not strictly observed. The situation has claimed the lives of many innocent Tanzanian citizens and even foreigners plying along major roads in the country. Police force are in serious lookout for drivers who violates rules and laws imposed on road safety but their efforts have been ending up in vain. The persisting situation has caused losses of people's lives for nothing. Actually stakeholders need to apply extra efforts in order to eradicate the phenomenon. One human rights activist Sylvester Mayala of Mwanza has called on a joint concerted efforts among people in the country as it is the only lasting solution to the problem.

Services at Magogoni ferry in Dar es Salaam to resume in mid August.

THE Permanent Secretary (PS) in the Ministry of Works, Transport and Communications (Works), Engineer Joseph Nyamhanga, has said that Mv Magogoni ferry services are set to resume mid this month, noting that construction of the new Magogoni ferry will be completed by October. Eng Nyamhanga made the revelation when he visited the Tanzania Ports Authority (TPA) dockyard and inspected implementation of the maintenance of Mv Magogoni and construction of the New Magogoni and Mv Tanga ferries. “The contractor has completed repairs by 90 per cent as they are waiting for electrical equipment to arrive from abroad for installation,” said Eng Nyamhanga. He pointed out that construction of the Pangani ferry (Mv Tanga) has been completed and the part that now remained was sea trials and certification by the Surface and Marine Transport Regulatory Authority (SUMATRA). “Previously, the country used to procure and do repairs of the ferries abroad but due to advancement of technology, all the engineering work is being done by a local company known as Songoro Marine Transport Yard Limited of Mwanza,” noted the PS. The Acting Chief Executive of the Tanzania Electrical, Mechanical and Electronics Services Agency (TEMESA), Eng Manase Ole-Kujan, pointed out that the move aimed at improving ferry boat services in the country. “The maintenance of Mv Magogoni, which has cost over 1.1bn/-. 

Upon completion, will ease congestion because the ferry has the capacity of carrying 2,000 passengers and 60 vehicles,” said Eng Ole-Kujan. The new Magogoni ferry will have the capacity to carry 170 tons, 100 passengers and 22 small vehicles. Its construction, in the initial stages, is being executed by a local contractor at a cost of 6.2bn/-. Construction of the Pangani ferry amounts to over 4bn/-. It will have the capacity to carry 50 tons and 100 passengers. “The main engine overhaul and installation of generators will be carried out by TEMESA,” he said. The Director of Songoro Marine Transport Yard Limited, Mr Saleh Songoro, extended recognition to the government for entrusting them with the execution of the project, calling upon local steel companies to harvest the original metal instead of relying on scraps for production. “Construction of large vessels such as ships, boats and others require quality metals,” he said.