Mining of iron and construction of thermal power stations attract great interest from companies
Posted by African Press International on August 26, 2008
Filed by Leo Odera Omolo
More than 81 internationals and local firms are seeking to partner with the National Development Corporation of Tanzania to start mining of iron ore and construction of thermal power stations at Mchuchuma and Liganga respectively.
The NDC holds a prospective licence fro mining of coal in Mchuchuma and Iron ore in Liganga operated within the Regional Spatial Development Initiative (RSDL),which is implemented by South African governments Department of Trade and Industry and other development partners
Tanzania’s Minister for Industry ,Trading and Marketing Dr.Mary Nagu said recently that so far 81 firms from within and outside Tanzania have unsolicited bids to invest in the project.
The minister said 38 of the firms want to execute the Kiganga iron project while 43 have shown interest in investing in Mchuchuma thermal power project
“ten companies have shown interest in investing in both projects under the strategic integrated approach that is sought in order to speed up the Mtwara Development corridor” said the Minister
The two projects in which Mchuchuma coat will be turned into thermal power and the Liganga Iron ore turned into steel ore considered critical for the future economic development of Tanzania
The director of project development at NDC,Alley Mwakibolwa was recently quoted by the media s saying that the corporation was currently busy preparing the request for proposals and as such ,it would not be ethnical under procurement regulations to reveal names of bidders.
The RSDI program has fro some time been seeking a private investor to partner with the NDC to development the two mineral assets located in southern Tanzania.
The program facilitates investment that unlock economic potential in specific southern African countries enhancing their attractiveness fro investment.
Initially the Tanzanian governments proposal to award the project to multinational investors did not attract much interest only a few regional companies with in from Europe submitted bids early last year . These were sub-Saharan Resources NL of Australia, Athi River Kenya and MM integrated of Tanzania
NDC says the total projects embedded in the Mtwara corridors Development Project that are currently being promoted are estimated to cost USD3.5 billion of which Mchuchuma is to cost USD 600 million iron ore in Liganga USD 1 billion and soda ash in Lake Natron USD 600 million
According to an early draft document on “strategic prospective of the Mtwara corridor development (MTDC) process in Tanzania “ the country has identified 100 projects worth USD 79 billion in the MTDC. The projects to be spread over 15 sectors, will provide 193,308 temporary jobs and create a turnover of USD1.87 billion annually and indirect employment of 114,646 people.
The draft document says the investments portfolio is projected to produce a volume of trade within and outside the country of some 25,446,000 metric tones per annum.
The MTDC is a multinational project involving the countries of Malawi,Mozambique,Tanzania and Zambia
The project is under the Southern African Transport and Communication commission of that SADC
ENDS
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