A power plant in Tanzania. Thermal power will help solve the country’s power shortage
What you need to know:
NDC holds a prospecting licence for coal mining.
MtDC is a multinational project involving the countries of Malawi, Mozambique, Tanzania and Zambia.
More than 81 international 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 prospecting licence for mining of coal in Mchuchuma and iron ore in Liganga operated within the Regional Spatial Development Initiative (RSDI), which is implemented by the South African government’s Department of Trade and Industry and other development partners.
Dr Mary Nagu, Minister for Industry, Trading and Marketing, said last week that so far 81 firms from within and outside Tanzania have unsolicited bids to invest in the projects.
Dr Nagu said that 38 of the firms want to execute the Liganga iron ore 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,” she said.
The two projects — in which Mchuchuma coal will be turned into thermal power and the Liganga iron ore turned into steel — are considered critical for the future economic development of Tanzania.
The director of project development at the NDC, Alley Mwakibolwa, told The EastAfrican that the corporation is preparing the Request for Proposals, and as such, it would not be ethical under procurement regulations to reveal names of bidders.
The RSDI programme has for some time been seeking a private investor to partner with the NDC to develop the two mineral assets located in southern Tanzania.
The programme facilitates investments that unlock economic potential in specific Southern African countries enhancing their attractiveness for investment.
Initially, the Tanzanian government’s proposal to award the project to multinational investors did not attract much interest.
Only a few regional companies, with one from Europe, submitted bids early last year. These were Sub-Sahara Resources N/L of Australia, Athi River Kenya and MM Integrated of Tanzania.
NDC says the total projects embedded in the Mtwara Corridor Development Project that are currently being promoted are estimated to cost $3.5 billion — out of which Mchuchuma is to cost $600 million, iron ore in Liganga $I billion, and soda ash in Lake Natron $600 million.
According to an early draft document on “Strategic Perspective of the Mtwara Development Corridor (MtDC) process in Tanzania,” Tanzania has identified 100 projects worth $7.9 billion in the MtDC.
The projects, to be spread over 15 sectors, will provide 193,308 temporary jobs and create a turnover of $1.87 billion annually, leading to a permanent direct and indirect employment of 114,646 people.
The draft document says the investment portfolio is projected to produce a volume of trade within and outside the country of some 25,466,000 metric tones per year.
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 the Southern African Development Community.
