Tanzania’s government has revealed that the much-vaunted Bagamoyo port project will be constructed on its terms, issuing an ultimatum to Beijing-based China Merchants Holdings International (CMHI) to either accept the conditions or drop its interest.
The Bagamoyo port project was initiated under the administration of the retired President Jakaya Kikwete with a framework agreement signed on March 24, 2013. But when President John Magufuli came to office in 2015, the project was temporarily abandoned as the government focused on improving existing ports at Dar es Salaam, Mtwara and Tanga.
It encountered further delay when Magufuli in January 2016 ordered an immediate suspension of the project on the basis that the conditions set by the investor were as good as selling Tanzania to China.
The Chinese investor had given certain conditions on the $10 billion project which authorities deemed not beneficial to the country. The government rejected and revised the demands according to Deusdedit Kakoko, the chief executive of Tanzania Ports Authority.
As reported by The East African, the new stringent terms of the contract offer the Chinese company a 33-year lease instead of the 99-year one it had demanded. There will also be no tax holiday for CMHI and the company will be Click here to read entire article
Source:: Ventures Africa