Tuesday, July 5, 2016

Task force to oversee Grand Bagamoyo Plan

SYLIVESTER DOMASA
THE government has formed a task force to mobilise resources for the much-hyped and awaited Bagamoyo mega-port and satellite city to facilitate ambitions of becoming a middle-income country by 2025.

The force, comprises officials from the Ministry of Finance and Planning, Export Processing Zone Authority (EPZA), China Merchants Holdings International (CMHI) from China and State Government Reserve Fund (SGRF) from Oman.
EPZA Investment Promotion Manager Ms Grace Lemunge told reporters at the ongoing Dar es Salaam International Trade Fair (DITF) that the project was delayed by budget deficit to compensate villagers who are to pave way for the project.
The project, sitting on a 9,000-hectare area, involves the construction of the largest port in sub-saharan Africa an industrial, commercial and residential enclaves around Bagamoyo. “Roughly, total compensation is pegged at 150bn/-.
We have managed to pay only 50bn/-, limiting the project from taking off,” she explained. She further explained that the project would have been started but residents in the surveyed villages, which had not been paid for, claimed “it will be absolutely unfair” to develop one area and leave the other.
The task force will help raise the required fund with the government. However, she said, the authority has introduced privately-owned special economic zones to help fast-track processing industries in the country, the latest entrant being Star City in Morogoro.
According to the manager, the authority has already issued 11 licences for industrial development in Bagamoyo as there are signs that more firms are interested to invest in the area.
More Tanzanians are coming on board to invest in the EPZA, added Ms Nakadongo Fares, a Senior Promotion Officer in the authority. The officer said the target of the authority is to double exports of locally-made products, thus contributing heavily to the country’s gross domestic products (GDP).
Ms Fares elaborated that the authority, for instance, is working on a plan to develop the Kurasini Tanzania-China Logistic Centre, a project that has reached good take-off stage.
According to the official, the authority is offering 10-year tax exemption for firms investing in strategically-allocated areas. A maximum requirement to secure land portion for investment for local investors is to have an annual turnover of 100,000 US dollars and 500,000 US dollars for foreign investors.
Explaining on the private special economic zone arrangements, Ms Lemunge said the focus is on processing and manufacturing firms. Star-City General Manager Anangh Bhat said the firm has already secured an operating licence from the EPZA and was now awaiting an environmental impact assessment from the environmental council to start investment.
“We expect the environment permit in 15 days. The first phase, which consists of industrial development, will start early in September,” he reported. Mr Bhat said the firm, run jointly by Tanzania and Singapore firms, holds over 80,000 hectares for industrial, residential and dry port development.
“We want to decongest Dar es Salaam and other big cities by developing other towns. Investors in Morogoro will be able to access markets and services in big cities like Dodoma and Dar es Salaam,” he pointed out.

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