Tanzania has said that it is open to discussions with investors on the $10 billion Bagamoyo Port project. Construction has stalled over tussles from the foreign investors and the government.
According to President John Pombe Magufuli, investors’ conditions were likely to prevent Tanzania from reaping maximum benefits from the project.
In 2013, Tanzania signed a framework agreement with China Merchants Holdings International to build the port and a special economic zone. The idea was intended to establish a regional trade and transport hub, with financial backing from Oman’s State General Reserve Fund.
However, investors posed demanding conditions such as they be allowed to set charges for cargo passing through the port, tax exemption on various goods and compensation for any losses incurred during implementation of the project. Investors also wanted a 99-year lease term as opposed to 33-year term proposed by Tanzania.
Even as Tanzania opens up discussions with investors, it maintains that focus will be placed on merits that will be accrued to the local government.
Construction works on the port started in 2018 and is expected to be one of the largest government infrastructure projects in the country. The Bagamoyo port and its affiliate industrial zone are meant to address congestion at the old port and support Tanzania to become East Africa’s leading shipping and logistics centre.
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