Prime
Hope as Tanzania invites bids for $400m soda ash project
What you need to know:
- National Development Corporation has finally invited bids for the establishment of a soda ash processing plant at Engaruka Basin in Monduli District, Arusha Region
Dar es Salaam. National Development Corporation (NDC) has finally invited bids for the establishment of a soda ash processing plant at Engaruka Basin in Monduli District, Arusha Region.
The long-awaited soda ash project that is expected to cost $400 million was initially to be located in Oldonyo Lengai near Lake Natron, but NDC dropped the plan due to environmental reasons, including the fact that the site is a breeding area for the lesser flamingo.
Soda ash was later discovered in Engaruka Ward, Monduli, where the project will now be executed.
The government has compensated about 300 villagers living near the project site so that they can vacate the area and pave the way for work to start.
NDC on Monday invited bids from potential investors, with the announcement marking a major step forward in harnessing the mineral potential of the area located about 160 kilometres north-west of Arusha City.
NDC, a statutory body wholly owned by the government of Tanzania, said in a statement that the selection process will be based on rigorous evaluation criteria.
The criteria include adequacy and clarity of proposals, management setup, financial and technical capacity, sustainability and relevant expertise.
Engaruka Basin’s soda ash concession is one of several mineral projects under NDC’s portfolio.
According to the corporation, the project is poised to contribute significantly to Tanzania’s economic development in partnership with the private sector.
More than half of the world’s soda ash production is used in the manufacture of glass for containers, fibreglass insulation and flat glass.
Speaking during the commissioning of the $311 million Sapphire Float Glass plant in Mkuranga District, Coast Region, in September, the then Industry and Trade minister, Dr Ashatu Kijaji, said 80 percent of raw materials used by the factory were sourced locally and the remaining, mainly soda ash and iron, was imported.
She added that the government was in discussions with the factory’s owners on the possibility of developing the Engaruka soda ash, which would enable the company to source all the raw materials it needs from within Tanzania.
Dr Kijaji said, however, that investors’ biggest complaint was about the lack critical infrastructure such as electricity supply networks and reliable roads.
“This means that the government needs to compensate some people in the project area in order to develop the required infrastructure.”
President Samia Suluhu Hassan accepted the proposal and said the government would work on the matter to ensure that the project goes ahead so that the factory can get all its raw materials from within Tanzania.
NDC said interested investors are required to download bid documents from the parastatal’s website and submit completed proposals.
Prospective investors have until February 13, 2025 to submit their proposals and pay a non-refundable application fee of $250, or its equivalent in Tanzanian shillings.
NDC emphasised its right to reject any proposal without liability, ensuring that all submitted documents will remain strictly confidential.
Engaruka Basin’s proximity to Lake Natron and its mineral wealth presents an attractive opportunity for investors.
