Fate of Dar ports deal lies in today’s parliamentary debate

Dar es Salaam. Tanzanians will focus their attention today on Parliament, where the Intergovernmental Agreement (IGA) between Tanzania and Dubai will be tabled for legislative debate and resolutions. The agreement intends to enhance and improve the performance of Tanzania's sea and lake ports.

The August House’s nod today will set the stage for 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, the United Arab Emirates (UAE).

The deal was struck in October of last year, with the two countries agreeing to form an economic and social cooperation to expand and improve Tanzanian ports.

However, a heated controversy has erupted in Tanzania, with some Tanzanians supporting the pact and others rejecting it.

This came shortly after the Parliament released a statement calling stakeholders to comment on the Parliament’s resolution for recommendations on the confirmation of the Dodoma authorities’ cooperation with Dubai.

On the side that opposes, they believe there are limitations on investment, the difficulty of withdrawing from the contract in the event of a misunderstanding, and claims that the DP World Company has conflicts with some countries that entered into agreements in similar deals.

Yesterday, analysts who spoke to The Citizen said that with the current inefficiencies at the ports, impacting end customers and escalating costs, private sector investment at the Dar es Salaam Port was a potential game-changer.

However, others warned that the agreement must put Tanzanian interests at the forefront.

The Tanzania National Business Council (TNBC) co-chairperson, Ms Angela Ngalula, commended President Samia Suluhu Hassan for making difficult decisions to bring in the private sector into port management.

She said inefficiency, corruption and negligence were the order of the day, which has made the Dar es Salaam Port expensive as compared to its competitors, including the neighbouring Beira.

"The port has been stagnant for a long time and has failed to efficiently serve the eight countries surrounding us," she said during the 14th TNBC meeting.

"We have failed to exceed the six million metric tonnes of annual handled cargo amidst an estimated potential of serving 30 million metric tonnes," she added.

Dr Amos Majula, an expert in economic issues, said there were no problems if the decision was reached while prioritising country interests. "We hope the Parliament will approve the deal, something that will benefit the nation. Existing noise should be taken positively in the acquisition in order to adopt a beneficial framework for the nation," said Dr Majula, who doubles as a retired senior lecturer in economics from the University of Dar es Salaam (UDSM).

Fundamentally, he noted that members of Parliament should understand that today's decisions will not be forgotten for generations to come, noting that they will be held accountable for anything wrong.

"In the way, our ports have caused losses, if there is a way to bring productivity and profit to the country, then we better accept the country’s development," he said.

On Friday, TPA director general Plasduce Mbossa strongly defended the government’s position, noting that there was misinformation circulated by the opponents of the plan.

Mr Mbossa said those spreading the "falsehood" that there was a 100-year contract for the lease of ports in Tanzania by Dubai’s DP World were simply advancing their own interests.

"It appears that individuals who brought up the 100-year component of the matter had their own agenda... it is a blatant distortion of facts," he was quoted as saying.

He said the agreement spelt out the cooperation between Tanzania and the emirate of Dubai, adding that the cooperation will be in areas of training, information and communication technology (ICT) and in the development and improvement of ports in general.

"The contract has been signed, but it cannot become effective without parliamentary endorsement," Mr Mbossa said.

If it sails through Parliament, it will pave the way for more negotiations between TPA and DP World with regard to the implementation of the plan. "These implementation agreements have not yet been signed. They have not been negotiated," he insisted.

In the National Assembly, Speaker Tulia Ackson told the House in Dodoma that parliamentary committees responsible for infrastructure development and investment convened a public hearing on Tuesday and were still receiving public views via post and email.

She said the resolution was expected to be tabled in Parliament on June 10, 2023 (today) for debating and approval after the committee review.