IT is estimated that about 5,000 jobs will be created by
the envisaged 4 trillion shillings plus worth project in Kilwa, Lindi Region.
FOR the first time in the country’s history, the Tanzania
Investment Centre (TIC) has officially received an application for the
registration of a mega fertilizer plant project worth 1.9bn US Dollars (over 4
trillion/-).
Ferrostaal Industries Project GmbH, the Germany investor
in the project, submitted its application documents to TIC yesterday for the
construction of the mega fertilizer plant in Kilwa, Lindi Region.
It will be implemented jointly with Danish shareholders
-- Holdor Topsoe A/S -- will be registered under the name of Tanzania Mbolea
and Petrochemicals Company Limited (TAMCO).
Tanzania Petroleum Development Corporation (TPDC) is also
a shareholder in the project. According to the TIC Executive Director, Mr
Geoffrey Mwambe, the project will create 4,800 direct job opportunities of
which 300 will be filled by expatriates.
The plant is expected to run on natural gas with a
consumption rate projected at 104 million standard cubic feet per day
(104mmscfd). Mr Mwambe said the plant is expected to produce 1.3 million tonnes
of UREA fertilizer per annum (about 3,850 tonnes per day), reducing
tremendously the country’s use of its foreign currency in importing the
fertilizer.
According to the TIC executive director, Tanzania’s
annual fertilizer demand stands at 350,000 tonnes. Given the bulk nature of
fertilizer production, the executive director said part of the consignment
would be exported to neighbouring countries.
Kilwa has been chosen as the project base as it will be
easier to haul raw materials from sites in the southern regions. Kilwa’s
proximity to the natural gas infrastructure will also simplify project
implementation.
“This project is of great importance to the government,
given the fact that the country is now implementing an industrialization drive
to enable its economy attain middle-income status,” Mr Mwambe said.
He added: “It is very rare for any country, especially
one in the developing country category, to register this size of project. It is
a strategic and exemplary project that everyone must be proud of.”
According to the TIC executive director, discussions on
registration and implementation were held for a long time before an agreement
was reached. Mr Mwambe said TIC would expedite the registration process so that
investors and the country could realize its potential soon.
He said residence and work permits would also be
processed and issued to the expatriates involved, for speedy takeoff. The
production of UREA fertilizer by the new plant would bring a sigh of relief to
farmers who have been complaining of receiving the commodity late every farming
season due to importation drawbacks.
Local sourcing of the fertilizer would automatically
reduce its market price, considering that freight charges have always
contributed to high prices, negatively impacting on productivity due to
farmers’ inability to purchase it.
The envisaged plant is the largest investment in the
sector of agricultural inputs. Minjingu Mines and Fertilizers Limited also
produce fertilizers for local use and for export. Its production capacity is
reportedly 100,000 tonnes per annum.
The submission of the documents to TIC was witnessed by
diplomats from Germany and Denmark.
Source: Daily News TZ