East Africa: Minister Urges Private Sector To Participate Fully in EA Oil Pipeline for Benefit

Posted on :Tuesday , 23rd August 2016

Tanga — Minister of Energy and Minerals, Professor Sospeter Muhongo, has called on the private sector in Tanzania to take fully participation in a big multimillion East Africa Crude Oil Pipeline in order to benefit from it.

Professor Muhongo gave the remark yesterday as he visited chongoleni area in Tanga city, the site where the crude oil from Kabale, Ohima District in Uganda will be received for exportation at Tanga Port.

He said the projects was one of the biggest projects that the country has been undertaking, therefore the private sector should prepare and fully tape the opportunities which come with the project.

He said the project would bring in the country, particularly in Tanga region, people from different countries who would need some essential social services like hotels, transportation and food.

Therefore the private sector must prepare to meet the demand. "We don't like to see private sector blaming the government that they are not involved in a big project like this one.

That is why we call upon them to start investing so that the world may see that we are prepared to serve the big community that will fly in," he stated. He further said that for the project to become successful, it needs the readiness and commitment from the government and wananchi, thus everyone has an opportunity to benefit from it.

He, however, had challenged Tanga Region authorities to be active enough in promoting their services so that other neighbouring countries would see the readiness of Tanga people in receiving and utilizing the opportunities of the project.

"You people of Tanga have done nothing so far to promote the oil project and announcement of your service....you are waiting until the minister visits here...you must be aggressive and start to promote your region and services like hotels," he further said.

Speaking about compensation, Prof Muhongo said that everyone would be compensated according to initial survey satellite pictures taken.

Therefore those who developed their lands after that survey would not be compensated.

"Some people, after hearing that we are taking their land for the project, started to develop it in order to be compensated ...we already have satellite photos which shows everything which was there on the land during the survey, therefore a new development will be a lose to the land owners," he clarified.

"In our country the land is a property of the government, but in other countries the land is fully owned by an individual..therefore here the oil pipeline will pass through road reserve areas which need no compensation except in few areas like here ..this is one of the reason which enabled us to qualify for the project rather than our neighbouring competitor ..apart from that Tanga port has efficient depth," he said.

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