Progress on Mchuchuma development project encouraging, says NDC

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INNOCENT-THE BLOGGER-BOY

The industry and trade minister, Dr Abdallah Kigoda

 The evaluation of Mchuchuma project is going on well and the government was currently evaluating the value of houses and crops of 200 residents surrounding the Liganga and Mchuchuma
integrated project to pave way for the implementation of the project which is expected to take off next year.

 

The National Development Corporation (NDC) head of steel and electrical, Sospeter Kerefu said the government evaluators are currently at the site.

 

In May, the National Assembly this year, the industry and trade minister, Dr Abdallah Kigoda said the construction of the project was expected to start at the end of this year. However, NDC said because the evaluation was yet to be completed the construction will start next year.

 

Kerefu made the remarks during the official closing of 39th Dar es Salaam International Trade Fair (DITF) exhibitions which started on June 28, that the production was expected in 2019.

 

He said evaluation works was planned to be completed before end of this month, adding it will determine the amount of money needed for payment.

 

He added that corporation would pay cash for farmers whose crops had been destroyed and would also build houses to compensate them instead of giving them cash money.

 

"This is our new progress and we hope to meet our target starting with construction, saying, for  people who will be relocated the corporation in collaboration with   the municipal council will set up the area for them which will include all social services" he said.

 

At least 5trn/- is available to fund the Mchuchuma colliery project estimated to have 540 million tonnes of coal deposits, which are enough to produce 600MW for over 100 years.

 

Speaking when inaugurating the 39th DITF last Friday, President Jakaya Kikwete highlighted that   the trade fair had become better and more known over the years, adding it was a testimony to increased economic growth.

 

He said that in his ten years in office, the number of local participants had increased from 1,400 in 2006 to 1,750 in 2014 and foreign participants had also increased five times from 108 to 500 during the same period.

 

Sales originating from the fair also increased from 394m/- to 1.09bn/- during that  period and revenue collected rose from 1.32bn/- in 2006 to 3.2bn/- in 2014, adding that DITF continues to get good reviews from the World Trade Fair Organisation.

 

He said: “The threshold for an economy to be middle economy is USD 1,099 million revenue collection, Tanzania is collecting USD 1,066 million and if the business community increases their efforts, we will soon be  in a different league, away from the least developed countries (LDCs),"

 

This year’s fair  about 25 countries 400 foreign companies and 1700 local exhibitors as well as ministries and its institutions participated.

 

Early this year, the government revealed that the cost for Mchuchuma colliery and Liganga iron ore mining projects is USD3billion which will be sourced in partnership with the government  through NDC and the Chinese firm Sichuan Hongda Group.

 

The Chinese firm has an 80 per cent stake while the government through NDC controls 20 per cent shareholding.