LOCAL businesses are capable and ready to deliver services for the construction of Hoima- Tanga crude oil pipeline, as more Tanzanians increasingly become eager to benefit from one of the largest infrastructural projects.
The co-founder of Association of
Tanzania Oil and Gas Service Providers (ATOGS), Mr Abdulsamad
Abdulrahim, told reporters in Dar es Salaam yesterday that indigenous
Tanzanian individuals and corporate bodies have what it takes to deliver
services for the construction of the pipeline.
The project is expected to be launched
in Tanga after laying of a foundation stone on Saturday by President
John Magufuli and his Ugandan counterpart, Mr Yoweri Museveni.
“ATOGS wishes to assure the government
that local suppliers have demonstrated capacity and readiness to deliver
most of the services both technical and nontechnical that will be
required in this project,” he said.
Uganda and Tanzania are jointly
constructing a 1,445 kilometre world’s longest heated pipeline from
Hoima oilfields in Uganda to Tanga Port of the Indian Ocean at an
estimated cost of 8tri/- (3.35 billion US dollars) to pump oil
discovered in Uganda to the international markets.
About 80 per cent of the construction of
the pipeline will be conducted in Tanzania as it will be passing
through the following regions - Kagera, Geita, Shinyanga, Tabora,
Dodoma, Manyara and Tanga.
It is expected to create about 10,000
direct jobs in Uganda and Tanzania, many more indirect jobs and
thousands of trade and business opportunities.
According to ATOGS cofounder, local
suppliers were capable of delivering in construction, engineering
services, procurement of materials, logistics and indirect services such
as accommodation, transport, facilities management, operation and
maintenance.
Other areas which can be served by local
businesses include financial services such as banking and insurance,
legal, security, catering and emergencies,” he said. He added that
companies offering most of these services have joined ATOGS before
encouraging others to do so.
He called upon other service providers
in the oil and gas sector to show up and take the opportunities to be
created before, during and after construction of the pipeline.
According to him, service providers
stand to benefit immensely if they are represented by one body for more
convenience on the part of government and other stakeholders.
“It is even more encouraging that
participation of local suppliers in the oil and gas sector has a legal
backing of the Petroleum Act of 2015, which opens opportunities for
local content.
The Executive Director of Tanzania
Private Sector Foundation (TPSF), Godfrey Simbeye, said construction of
the pipeline will be one among largest infrastructure investment
projects and it was important that Tanzanians grabbed jobs and trade
opportunities to be created.
He said TPSF will cooperate with ATOGS
to lobby and promote participation of Tanzanians in the project, to
maximise economic benefits to the nationals. “Let’s go and take the jobs
and businesses.
Let’s go and deliver services in the
highest possible skill level. Let’s go and do business and follow ethics
to build trust to others,” he said.
He said banks and financial institutions
also need to strategise on how they will help Tanzanians retain home as
much as possible the 8tri/- that will be used to finance the
construction.
He called upon the government to
continue improving investment climate to attract local and foreign
investors in large infrastructural projects.
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