Economists caution as Parliament passes ports bill

Dar es Salaam. Experts have cautioned about the upcoming signing of contracts under the Intergovernmental Agreement (IGA) between Tanzania and Dubai after Parliament approved the disputed pact yesterday.

Members of Parliament debated and approved a resolution approving the agreement, which will provide a framework for other specific contracts in port-related projects.

Read: Aye!!! As MPs approve DP World, TPA deal

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The agreement on economic and social cooperation to expand and improve Tanzania ports also gives the UAE-based DP World an exclusive right to discuss with the government of Tanzania about operating and developing some port projects.

According to the economists, the next step is the one that needs more attention because the agreements will kick-start the implementation of the deal that was struck in October last year.

The Parliament approved the resolution allowing the government to take on other procedures, including the concession agreement, before the commencement of a new cooperation chapter between the Tanzania Ports Authority (TPA) and DP World, a multinational logistics company based in Dubai.

Speaking to The Citizen yesterday, the executive director of an economic research think tank, Repoa, Dr Donald Mmari, said that the concerns of Tanzanians were given a chance to be heard and that it was important that the citizens were always given priority and listened to.

“The biggest area to increase attention is the signing of economic agreements for the implementation of specific projects in the port of Dar es Salaam. This should be done with great attention to the interests of our country,” said Dr Mmari.

The agreement created an uproar among members of the public, who demanded more explanations about the contract, which they termed vague.

An independent commentator, Mr Buberwa Kaiza, claimed that the adoption of the resolution made it directly recognised internationally, and thus it required great attention towards the next steps.

“The next venture can be greatly affected by this resolution that has been passed. If anything happens that we didn’t expect or weren’t aware of, we will not be able to take any action as a country until they consent to the actions being taken against them. Otherwise, it will not be possible,” he said.

“Small contracts cannot affect this big one, so more attention is needed given that the contracts may not be sent to Parliament for discussion,” he noted.

Chadema’s vice chairman, Tundu Lissu, described the contract as one of “the most dubious to be signed by the government since independence.”

“It is a contract that places itself above the laws and international contracts signed by Tanzania,” he told The Citizen’s sister newspaper, Mwananchi.

“It is the contract that cannot be revoked or terminated even after Tanzania has invalidated diplomatic relations with the UAE, when it has entered into a war or under any other circumstance,” he added.

Furthermore, he said the contract gives an important part of Tanzania’s land to another country and its economic institutions for an unspecified period of time.

Regarding the agreement, the parliamentary committee made recommendations, including that all the contracts that will follow in implementing the terms of the arrangement should be productive, and protect the broad interests of the country of Tanzania and its people.

On the Infrastructure Development Committee, Mr Moshi Kakoso said the agreement should accommodate views from important stakeholders in the sector in order to improve implementation scope.

“The committee insists that the validity of agreements and implementations to be signed should mention a specific execution time frame for projects for the broad interests of the country,” he said.

“The contracts should direct the partners to evaluate the implementation of investment projects and terminate the agreement amidst failure to honour the agreement,” he added when reading the committee’s recommendations.

ACT-Wazalendo leader Zitto Kabwe said he had asked legislators that the contracts between TPA and DPW should clearly state that they are related to operations (management contracts).

“They will explicitly be related to the ports and docks that will be mentioned, among others.

Earlier, Prof Kitila Mkumbo, Ubungo, CCM, emphasised that the resolution on the table was within CCM’s policies and was not about the port being sold, as many people claimed.

“The resolution is about the development and improvement of the port’s performance. CCM would not allow its government to introduce a resolution to sell the port because it would be against party policies,” he said.

“So there’s no reason to worry, what we are discussing here is within the foundations of CCM’s economic policies,” he added.

However, Ms Aida Khenani, Nkasi North, said more time was needed to debate and accommodate more stakeholders, noting that the issue has broad interest across the country.

In his closing remarks, Works and Transport minister Makame Mbarawa assured lawmakers that their views and those of other stakeholders would be accommodated.

“We still have time to work on them. Be assured that all opinions about IGA and HGA will be worked out,” he promised.

He outlined some of the benefits, such as increasing ship arrivals from 1,569 in 2021/22 to 2,950 in 2032/33 and reducing container handling time from 4.5 days to 24 hours.

“It will reduce costs of cargo imports to neighbouring countries from $12,000 (Sh28.2 million) to between $6,000 (Sh14.1 million) and $7,000 (Sh16.45 million) per container going to neighbouring countries of Malawi, Zambia, and the Democratic Republic of the Congo (DRC),” he said.

“Increasing employment from 28,990 jobs in 2021/22 to 71,907 by 2032/33, as well as revenue collection at the ports from Sh7.76 trillion in 2021/22 to Sh26.7 trillion in 2032/33,” he added.