Chinese investor in Bagamoyo port dismisses TPA boss over contract ultimatum

Dar es Salaam. The Chinese company behind the $10 billion (Sh23 trillion) Bagamoyo Port project plan has dismissed as “fake news” reports of an ultimatum from the government of Tanzania to accept new contract terms.

The investor— China Merchants Port holdings Company Limited, also asked Tanzania Ports Authority (TPA) director general Deusdedit Kakoko to keep off the plan.

In a statement sent to The Citizen, investor’s chief representative Moosa Mao said they were unaware of any letter from the government about the stalled port project.

Mr Mao said they have received no contract terms or an ultimatum from authorities regarding Bagamoyo Port, noting that they never dealt with Mr Kakoko to whom the reports were attributed.

“The investor has not received any ultimatum in form of letter, notice or fax from the Government of Tanzania,” Mr Mao said adding: “The Investor is very disappointed to see fake information spread around, which not only damaged the ease of doing business environment of Tanzania, but also misguides the public and the top level officials of the government.”

The company’s response follows widely quoted reports by Mr Kakoko that the investor had been told to accept five revised conditions of the contract or leave. Mr Kakoko has been unavailable for comment since Friday on the turn of events.

Mr Mao said only the Prime Minister’s Office, Ministry of Industry and Trade and the Export Processing Zone Authority could comment on the project negotiations on behalf of the government. He said Mr Kakoko did not attend negotiation meetings.

TheEastAfrican last week quoted Mr Kakoko as revealing the revised contractual terms, including reduction of lease period from 99 to 33 years, scrapping of a tax holiday, no special investor status on payment of utility bills, removal of exclusive operating rights and compensation for dredging work.

But according to Mr Mao, none of the said conditions were part of negotiations between the Chinese investor and representatives of the government.

“Bagamoyo Port is a pure commercial investment project. Previous MoU/Framework Agreement expired years ago.

The government and the investor have not signed any legal binding contract or agreement,” Mr Mao said.

He said the parties have sat through 15 rounds of negotiation meetings between March 2017 and July 2018, during which they agreed most of the commercial terms with only 9 items pending. He did not, however, indicate the current status of the sticking points.

The Bagamoyo Port development project was initiated late into the tenure of President Jakaya Kikwete but it has since stalled due to what the current administration say are skewed provisions in the contract that do not protect the interests of the country.

It was to be implemented as a special economic zone investment by CMPort China and SGRF Oman.