$523 million Dar port deal takes a new twist

“We want also to know why our neighbours spent much less than what has been quoted by the Chinese firm.”PHOTO|FILE 

By The Citizen Reporters

In Summary

But other sources told The Citizen that the nature of work at the two ports were starkly different.

Dar es Salaam. The planned expansion of Dar es Salaam port involving the construction of berths no 13 and 14 has taken a new twist following the sudden cancellation of a project that was to cost $523 million (Sh836.8 billion), The Citizen has learnt.

According to credible information gathered by this newspaper, Transport minister Harrison Mwakyembe, after being briefed by Tanzania Ports Authority (TPA) Managing Director Madeni Kipande, cancelled the project that was to be undertaken by a Chinese contractor.

Instead, Dr Mwakyembe and Mr Kipande have handpicked Kinshasa-based Impala Africa as the new financier of the project on the understanding that the Congolese company would build the two berths and manage them to return its cost.

The duration in which Impala Africa wants to manage the two berths to recover the construction cost is said to be 25 years, The Citizen has learnt.

But some analysts have questioned how the company was chosen to handle such a big project. The Citizen has reliably established that no tender was advertised to obtain the potential investor or financier of the project.

But contacted yesterday, Dr Mwakyembe told The Citizen that the earlier estimates by the Chinese firm, which put the cost at well over $500 million, were much higher than what Kenya spent to expand the port in Mombasa.

He told The Citizen by telephone that construction of berths 13 and 14 would start this year.

Dr Mwakyembe said the ministry wants work to start as soon as possible despite the estimates “not being realistic”.

He added that Kenya spent about $250 million to expand Mombasa port, which was inaugurated by President Uhuru Kenyatta last year in a ceremony that was also attended by presidents Yoweri Museveni and Paul Kagame of Uganda and Rwanda, respectively.

“This plan has existed for many years, but I doubt the estimated costs…I’m wondering if a comprehensive topographical and hydro physical survey were conducted.

“Deep in the sea where the expansion is set to take place, there are fuel pipelines that are supposed to be reallocated, but the cost of moving them is not indicated anywhere in the survey,” Dr Mwakyembe said.

“We want also to know why our neighbours spent much less than what has been quoted by the Chinese firm.”