$48m earmarked for Tanzania roads

Travel 

Sunday, January 26, 2014

EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

BY KENAN KALAGHO

SMOOTH RIDE: A network of good roads is good for business growth.

  DAR ES SALAAM, Tanzania -The Tanzania government has received $48 million from Japan in grants for improving road and electricity infrastructure in Dar es Salaam city.
   The grants will pay for the widening of the new Bagamoyo road project and reinforcement of the power distribution at a cost of $303,488.
   According to a statement, the expansion of the new Bagamoyo road was aimed at addressing the emerged challenges that includes among others the unexpected amount of unstable soil which has caused shortfalls in the project.
   Japan Ambassador to Tanzania Masaki Okada said in a statement that once the new Bagamoyo four lane road is completed, it will cut the city’s traffic congestion thereby allowing the expansion of economic activities.
   He said the remaining amount of the grant is aimed at enforcement of Ilala sub-station and the already existing Dar 132kv power transmission line project from Ilala substation to Ubungo sub-station in Dar es Salaam.
   The whole power transmission project enforcement in Dar city would involve the construction of a new Jangwani beach sub-station as well as the construction of a distribution line from Jangwani beach substation to Tegeta substation, also the construction of Mwananyamala substation as well as construction of a distribution line from Mwananyamala substation to Makumbusho substation.
   Other power projects expansion will involve the expansion of Msasani substation as well as the expansion of Msasani substation to Makumbusho substation.
    The statement added that through the implementation of these projects the city of Dar es salaam will be able to improve the stability of power supply thereby leading to economical development as well as improving the residents’ social services like hospitals and schools.
   The reads in part, ‘By implementing these components, the project will greatly contribute to improving stability of the power supply in Dar es Salaam City, which will lead to further development of economic activities and improvement of social services such as schools and hospitals’.
   Meanwhile work on the Arusha and Minjungu junction road is nearly complete. The almost 100 kilometre section  is 70% done according to Deusdedit Kakoko, the Regional Manager of the Tanzania Roads Agency (TANROADS).

Added on: Sunday, January 26th, 2014

Dutch win deal for Dar es Salaam rapid transit

Travel 

Sunday, January 26, 2014

EAST AFRICAN BUSINESS WEEK, KAMPALA UGANDA

BY KENAN KALAGHO

SMART: Structures take shape for the expected opening at the end of 2014.

  DAR ES SALAAM, Tanzania - The Netherland-based, Rebel Group, recently won the $1 million advisory contract for managing the day-to-day operations of the proposed Dar es Salaam Rapid Transit (DART).
   Operations are expected to take off at the end of this year.
   “It is our honour to be part of this project in Tanzania, works of the project that is aimed at reducing traffic congestion at Dar es Salaam include constructing a 20.9 kilometre trunk road at the Kimara terminal, Kivukoni, Msimbazi, Fire, Gerezani and a part of Kawawa Road from Magomeni to the Morocco Road junction,” Rebel Group fare collection advisor, Jeroen Kok said after the deal ws sealed.
   Eighteen firms submitted an expressions of interest, but Rebel Group won out of the selected short-list of six names.
   During the signing of the contract, the Dutch company was represented by its financial advisor, Guillaume Remy while DART Agency was represented by its CEO, Asteria Mlambo.
The permanent secretary in the Prime Minister’s Office (Regional Administration and Local Government), Jumanne Sagini witnessed the event.
   The project that was launched in 2010 and expected to be completed at the end of this year is anticipated to ease transportation and traffic congestion in Dar es Salaam. It is hoped this will also open up other economic activities.
  Sagini said the awarded contract marked a new start in improvement of transportation system in Dar es Salaam.
   He said that it was a government priority and a necessity for DART operations to take off as soon as possible.
   He said the project was important for the growth and economy of city residents.
   For years Dar es Salaam city has always been experienced traffic jams which mostly affect the performance of the working and business class personnel that retard the growth of the city to the larger extent.
   The PS  insisted that there was already e framework in place for the implementation of the Public Private Public Partnership (PPP) project saying DART was a good project that would ensure involves a private sector investment of about $180 million.
   He said that with the public sector investing around $250 million into the partnership there would be a lot of job creation in the project and this would demand more future investment opportunities in form of PPP partnership.
   “The DART is one of the modern forms of transportation in the East African region that is expected to woo other partner states in to drawing lessons from its success in its implementation processes” The PS said.
   On his part the Rebel Group Fare Collection Advisor Jeroen Kok said there were much eager to working in the country aiming at easing the city traffic congestions.
The on-going construction of DART project with a distance of 20.9 kilometres special trunk road is expected to cover a stretch road of Morogoro road which is the major artery in the city connecting Dar es salaam to different regions of the country, and part of  Kawawa road from Magomeni to Morocco junction.
Consutltants say rapid transit systems offer cost effective, environmentally beneficial and high performance mass transit where population density often does not justify the construction of costly fixed rail systems and the need for greater flexibility in route mapping is better served by wheel-to-road transport systems.
A bus rapid transit system will typically cost four to 20 times less than an equivalent Light Rail system and up to 100 times less than an equivalent metro rail system.
   On completion Dar will be able to boast of the most efficient public transport in the region.

Despite loss Barrick sticks with Tanzania

Resources 

Sunday, January 19, 2014

BY KENAN KALAGHO

EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

Biggest EMPLOYER: As a policy, Barrick locally sources many of the inputs used for its operations, File Photo.

DAR ES SALAAM, African Barrick Gold (ABG) suffered a loss of $110 million (about Tsh179 billion) last year. 
This is despite creating  65,000 jobs in Tanzania with an investment of over $2 billion (over Tsh3trillion) in Tanzania economy.  ABG is currently the largest gold producer in Tanzania with three operational gold mines that includes Bulyanhulu, North Mara and Buzwagi and contributed over $980 million (Tsh1.5 trillion) to the Tanzania economy in 2013 that accounted for 3% of the country’s GDP.
The ABG Chief Executive Officer Brad Gordon told East African Business Week in Dar es Salaam recently the loss was due to fluctuations of gold prices in the world market while at the same time contributing around $223 million (Tsh358 billion) in direct taxes.
However, Gordon said ABG was still stable with a cash position of $289 million (Tsh464billion) as of September 2013 and the employment opportunities it offers and all its undertakings in the mining sectors gives it a position of being the largest private importer in the country.
He said that around $514 million (Tsh826 billion) worth of goods and services were locally sourced in 2013 which represented 32% of the total spent procurement chain.
“For a period of 13 years we have been in operational in the country, we have managed to become one of the major employers,” Gordon said. He said currently 93% of all the workers at ABG were Tanzanian.
He said ABG expects to start its production at the Buzwagi mine in five years  and position itself as the most efficient miner in Africa after being stalled for a period.
ABG, the largest foreign direct investor in Tanzania, is also planning to inject an additional $445 million (Tsh715billion) this year compared to $700 million (Tsh1.1 billion) additional investment it made in 2012.
Gordon said ABG is implementing its investments in making sure that it comes closer to the community by investing $14 million (Tsh22 million) per annum in Maendeleo Fund in the 50 projects of clean water, infrastructure, education and others.
The mining industry contributes hugely to the country’s GDP through employment, supplier contracts, investments, payment of government taxes and multiplier effects from business linkages to other sectors. In 2012 the sector recorded an impressive growth rate of 7.8% in 2012, up from just 2.2% in 2011.

Added on: Sunday, January 19th, 2014

Tanzania starts new customs system

News 

Sunday, January 19, 2014

BY KENAN KALAGHO

EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

Officials say TANCIS will mean considerable cost savings for clearing agents, File Photo

DAR ES SALAAM, TANZANIA - Tanzania Revenue Authority (TRA) is to introduce a new customs clearance procedure which officials say will be more efficient and cost effective than the present system. It starts on March 1st.
The Tanzania Commissioner for Customs and Exercise Tiagi Kabisi said last week in Dar es salaam that the new system that is expected to be launched March this year is expected to improve the tracking of goods as well as ensure fast clearance.
 Kabisi said there was a need for TRA to ensure that revenue collection is improved through the use of the new system known as Tanzania custom Integrated System (TANSCIS) which will replace the old ASYCUDA++.
“TANCIS has an ability to speed up clearance of goods and tracking movements of goods from point of shipments to landing,” Kabisi said. He said there will be a sharp reduction of costs on the side of the agents.
He also noted that the new system would allow the public to pay the required tax without extra or charging less to the procured goods while saying this has been done to ensure that the old system is dumped which was seen to have many shortfalls due to its manual operational.
He said that beside the delay in clearance of goods, the old system was also denying the government the required revenue.
The new system would lead to improvement of controls through in built automated checks , reduction costs for doing business, monitoring of cargo as well as efficient use of both financial and human resource.
He noted that this would in turn lead to quality services and creation on inventory in customs warehouse for overstayed goods and this would also ensure a continual effective monitoring.
It is said that some of the goods declaration changes will be cargo manifest write-off shifted to Customs Release Order (CRO) stage and the streamlined procedures will be reduced during declaration processing by automation.
The new system is said to be able to enforce security bond management for transit, export and re-export and also warehousing thus improving the management on cargo handling and transfer from one bonded area to another can be guaranteed through detailed manifest and single manifest distribution point.

Added on: Sunday, January 19th, 2014

Tanzania electricity supply to improve

Resources 

Monday, January 13, 2014

EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

 (Tanesco is expected to improve its power supply Photo By Kenan Kalagho)

BY KENAN KALAGHO, DAR ES SALAAM, Tanzania - Felchemi Mramba, the acting Managing Director of Tanzania’s electiricty utility, TANESCO has said power rationing was eased last year following the improvements of gas supplies at the Songosongo generation plants to Dar es Salaam.
Speaking late last year, he said  almost 85% of all the maintenance work on the gas wells in Songosongo in Lindi region is done, with the total capacity to produce 330 megawatts but currently supplying 264MW to the national grid.
Tanzania experienced long periods of drought that severely affected supplies from its hydro-power stations. This forced TANESCO to rely on expensive oil-fired power plants, resulting in substantial cost increases over the years.
Mramba said TANESCO made a loss of Tsh147.45 blillion (about $91million) in 2012 following losses of Tsh43.43 billion ($88million) in 2011.
The government wants the power sector financially sustainable so it can help support steady economic growth and stem fiscal pressures on the finance ministry.
According to government projections, the country is expected to generate some 150MW in Singida to the Central Zone of Tanzania of electricity by 2015 in a contract being implemented by China Daliang International Group. Tanzania is the lesading suppiler of gas inthe region.
The Chinese company is undertaking the project in partnership with the National Development Corporation (NDC) which when completed will have a huge impact in improving the lives of millions of Tanzanians.
According to NDC Director General Gideon Nasari, his they had taken up the project due to the country’s current focus of finding alternative sources of energy besides hydro-power.
Nasari said the project’s completion would mean Tanzanians getting the cheaper electricity.
Experts say last year, with the increasing stability of power the country experienced and the present progressive investments in the energy sector, they are optimistic that Tanzania will soon be enjoying a robust economic growth in coming years.
Experts in the sector have also pointed out that the availability of electricity would play an important role in stabilizing the price of goods on the market as well as leading to the creation of jobs.

Added on: Monday, January 13th, 2014

Tanzania asks for Algerian gas help

News 

Monday, January 13, 2014

EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

BY KENAN KALAGHO,  

(Dar want to tap Algerian expertise in oil and gas, web photo)
DAR ES SALAAM, Tanzania - The Tanzanian government  has asked the Algeria to offer  expertise in oil and gas exploration while also providing on-the-job training for Tanzanians.
Algeria’s 50 years experience in the oil and gas exploration and production including their achievements that has so far been realized, has been a great concern for the government of Tanzania to ask for the partnership in order to tap both the expertise and technology in the business.
Speaking in Dar es salaam last week, the Minister of Energy and Minerals Prof Sospeter Muhongo said after signing an MoU with the government of Algeria in December last year, the country will have to invite Algeria in the exploration of the oil and gas blocks in Songosongo-West and on-shore that the government owns through Tanzania Petroleum Development Agency (TPDC) without going through the tendering process.
Prof Muhongo said three areas of interests have been signed between the two countries where Tanzania is intended to work with Nigeria in oil and gas sector, electricity and minerals explorations.
“We will not go into tendering processes as far as working with Algerian government is concerned because that will be time wastage, Prof Muhongo said adding that as a nation we need to be strategic and not be forced to undergo tendering processes as these are our natural resources.”
Tanzania is determined to learn from Algeria on the Liquefied Natural Gas (LPG) competence as well as the field of pipeline fittings in transporting oil and gas from the exploration areas to consumers.
He said that Tanzania is determined to make sure that all the mining companies are supplied with energy derived from oil and gas including the neighboring countries of Congo and Burundi that lies within the extraction areas.
Prof Muhongo said Tanzania would like to emulate the Algerian model of oil and gas use where 97% of its electricity is generated from oil and gas and has allowed it to connect 98% of its 38 million populations to electricity that has led to the reduction of poverty in their country.
He said that Tanzania’s TPDC need to speed up these discussions so that the country can benefit from the partnership with Algeria and speed up electricity connectivity which currently stands at 30% out of the country’s 45 million population.
On his part, Algerian Minister of Energy and Mines Mr. Youcef Yousfi said that the MoU that was signed between the two countries would allow them to use their natural resources for economic development.
Yousfi said Tanzania has a lot of natural resources that needed to be developed for the benefit of the nation.
“Tanzania has developed mineral resources but the engine of development lies in the development of oil and gas sector” Mr. Yousfi said adding that the long term partnership that is to be developed between the two countries in exploration, production distribution and extraction of oil and gas would lead to Tanzania’s economic growth.
He said that their country’s 50 years experience in oil and gas sector has allowed it to build two pipelines that exports oil and gas to France and Spain.
He also noted that Algeria has been able to construct cement and fertilizer plants oil and gas raw materials that has enabled in job creation and allowing Algerians to impart their expertise to Tanzanians.
He insisted for the need of the government to have a hand in oil and gas sector that would allow more Tanzanians to be represented and benefit from their oil and gas natural resources.