Browsing: Oil and Gas Tanzania

Tanzania set aside over 110 hectares for the construction of the Mtwara Free Port Zone over a decade ago (2009) but since then, only 10 hectares have been put to use. Now Tanzania’s parliament wants answers as to why the project is lagging behind.

Special Seats Member of Parliament (CCM) Anastasia Wambura raised the concern recently in the August House citing that the project was very promising yet little groundwork has actually been done.

Responding the Deputy Minister of Agriculture Hussein Bashe acknowledged the slow pace of investment in the Mtwara Free Port Zone but blamed it on the overall drop in global economies that have affected the oil (and gas) industry gravely.

However, as to the MP’s suggestion that the government reassign the remaining 100 hectares to some other economic activity, Minister Bashe who was addressing the House on behalf of the Minister of Industry and Trade, said the …

Songas limited has paid the government TZS8.8 billion in dividends as a result of its shareholding in the Tanzanian gas-to-power company.

Songas is a strategic partner with the Government in meeting the growing demand for energy and includes ownership by Tanzanian sector entities, Tanzania Petroleum Development Corporation (TPDC), Tanzania Electric Supply Company Limited (TANESCO) and Tanzania Development Finance Company Limited (TDFL) as well as Globeleq, a leading independent power producer solely focused in Africa.

Songas Chief Financial Officer, Anael Samuel said TANESCO will receive about TZS2.2billion while TPDC will receive an estimated TZS6.6billion, both amounts will be subjected to withholding tax.  The amounts are determined by each entity’s shareholding in Songas.

Additionally, the government also benefits from its 32% shareholding in TDFL, which receives about TZS 1.8 billion in dividends and also through the Tanzanian Revenue Authority from the withholding tax on dividends.

Since 2012 the company has paid TZS121.6 …