Former NSSF head opens up on project portfolio

 

Former National Social Security Fund (NSSF) director general Dr. Ramadhan Dau. PHOTO | COURTESY

·         By 

Louis Kalumbia

 RSummary: Ramadhan Dau reveals the high-profile projects that were on the cards when he left NSSF after he was appointed Tanzania's ambassador to Malaysia in 2016

Dar es Salaam. Former National Social Security Fund (NSSF) director general Ramadhan Dau has spoken out on projects that were in the pipeline when he left NSSF after he was appointed Tanzania’s ambassador to Malaysia in 2016.

Speaking in an exclusive interview with The Citizen in Dar es Salaam, Dr Dau named the projects as a proposed power station in Mkuranga District that was expected to generate 1,000MW of electricity from natural gas, an envisaged metro system in Dar es Salaam, and construction of a hospital in the city in collaboration with Apollo Hospitals India.

Others were development of football talent in collaboration with Spanish giants Real Madrid, upgrade of the Dar es Salaam-Chalinze highway, and execution of the Kiwira coal project.

Contacted for comment, NSSF director general Masha Mshomba said the fund was assessing the projects’ viability, and see whether they could be implemented in line with the institutions’ current plans, laws, guidelines, procedures, and availability of funds.

Dr Dau said NSSF acquired 100 acres of land in Mkuranga District, Coast Region, worth Sh100 million for implementation of the 1,000MW power project.

The land is located close to the Mtwara-Dar es Salaam natural gas pipeline and a natural gas well owned by NSSF.

“We consulted the ministry responsible for energy, and announced that the relevant tender was won by a German consortium. I understand that due diligence was later done.

“A number of officials travelled to Trinidad and Tobago and several other places on study tours. What remained for the project to kick off was only the signing of a contract,” Dr Dau said.

According to him, $530 million was to have been invested in the project, with NSSF securing a $26.5 million stake from its land that was worth Sh100 million.

“Getting a $26.5 million stake from a Sh100 million investment isn’t a joke,” he said.

 

Metro project

Dr Dau said NSSF officials in June 2015 visited India, where an investor for a proposed metro network was identified.

The infrastructure would have linked Kisarawe, Julius Nyerere International Airport (JNIA), Bagamoyo, Mkuranga, Kongowe, Mjimwema, and Kibaha, among other areas in Dar es Salaam and Coast regions.

He said a memorandum of understanding for the project that was aimed at decongesting the city was signed in September 2015 between NSSF, the Tanzania Investment Bank (TIB) and the Indian company.

“The project would have made it possible for people to live on the outskirts of Dar es Salaam, and still be able to commute to the city centre in ten to 15 minutes.”

 

Apollo Hospital

Dr Dau said NSSF had reached an agreement with Apollo Hospitals India for the construction of an ultramodern hospital complex on 60 acres of land the fund had acquired in Kigamboni, Dar es Salaam.

“The project was aimed at doing away with the need for Tanzanians to travel all the way to India for specialised treatment. The agreement was signed at State House in Dar es Salaam in the presence of President Jakaya Kikwete and former Indian Prime Minister Manmohan Singh.”

 

Football academy

NSSF also agreed with Spanish football giants Real Madrid to jointly implement a football talent development initiative, with the fund acquiring 400 acres of land in Kigamboni for the purpose.

Dr Dau said the objective was to recruit talented young Tanzanians for training before linking them up with major clubs in Europe and elsewhere.

“We expected to make the most of the wealth of the experience of former Jitegemee Secondary School head teacher Fabian Massawe, who later served as Kinondoni district commissioner, had in this area. It was a viable project with plenty of economic benefits, including job creation, and strengthening of the national football team,” he added.

 

Dar-Chalinze highway

Dar Dau said NSSF submitted a proposal to the government in 2012, requesting approval for implementation of the project in collaboration with a Malaysian company.

 

Kiwira coal project

The company that was initially implementing the project defaulted on a $10 million debt, prompting NSSF to take over control of the firm.

“We managed to get an investor who commenced to produce at least 200 megawatts of electricity and sell coal from the mines,” Dr Dau said.

 

NSSF plans

However, NSSF director general Masha Mshomba told The Citizen that only profitable projects would be implemented after comprehensive assessment and analysis of their viability.

“We are currently in discussions with Tanesco (Tanzania Electric Supply Company) on the possibility of implementing the 1,000MW Mkuranga project, with the next round of talks scheduled to take place later this month,” he said.

Mr Mshomba added that projects that were likely to pose problems in their implementation, including the proposed football talent development plan, would be discarded.

“The NSSF board has been granted permission by the Finance and Planning ministry to sell land that was acquired for the football project.

“Implementation of projects will strictly adhere to the relevant laws and regulations, Bank of Tanzania guidelines, and directives from the Prime Minister’s Office. Availability of funds is also an important factor,” Mr Mshomba said.