China’s largest port operator has accused the government of
Tanzania of spreading “false information” and misguiding the public
about the cause of stalled negotiations over the $10 billion Bagamoyo
port development it is backing in the country.
China
Merchants Holdings International (CMHI) has been in negotiations with
the Tanzanian government since 2013 about plans to build a harbour and
special economic zone in Bagamoyo, 75km north of Dar es Salaam, but
those negotiations hit an impasse in June.
Two weeks
ago, Tanzania Ports Authority’s director general Deusdedit Kakoko said
that the government had told CMHI to back down on parts of the proposed
deal to make it more beneficial for Tanzania if it wanted to resume
negotiations.
Mr Kakoko said that, among other
conditions, the government would only offer the company a 33-year lease
to the port, not the 99-year lease it was seeking.
He
added that the government issued an ultimatum in writing to the company
and that negotiations would resume if CMHI was ready to comply.
However,
in a document issued by CMHI on October 25, the company said it had not
received the notice from Mr Kakoko and that the parties have already
agreed in principal to the 33-year lease
The company also claimed that Mr Kakoko had skipped parts of the
negotiations and alleged key parts of his statement to the media
comprised “fake and fabricated information.”
In his comments to government-owned newspaper The Daily News, Mr Kakoko had repeated concerns raised by President John Magufuli in June about the terms sought by investors.
These
included requests to restrict the development of other port facilities
from Mtwara to Tanga, effectively constricting competition, and to
exclude the Tanzania Revenue Authority from collecting tax in the port’s
special economic zone and should be charged special rates for utilities
such as water and electricity.
Minuted meeting
In its statement, CMHI said that none of the requests detailed by the president or the ports authority had ever been mentioned by the investors or discussed in meetings with the government, with the exception of dredging work:
In its statement, CMHI said that none of the requests detailed by the president or the ports authority had ever been mentioned by the investors or discussed in meetings with the government, with the exception of dredging work:
“The government asked the
investor to do the dredging work on its behalf and it has been agreed
and written in the minutes that the investment will be refunded through
wharfage.
When asked about the CMHI’s claims, Tanzania Ports Authority said it would not comment further on the matter.
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