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NATIONAL DEVELOPMENT CORPORATION

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Unity Bridge I across the Rovuma is currently under construction at Negomano ... the Nkhata Bay Port, construction of Mbamba Bay Port in Tanzania and the ... – PowerPoint PPT presentation

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Title: NATIONAL DEVELOPMENT CORPORATION


1
  • NATIONAL DEVELOPMENT CORPORATION
  • PRESENTATION ON THE
  • MTWARA DEVELOPMENT CORRIDOR
  • AT THE ESIPP WORKSHOP ON SADC CORRIDORS IN
    PORTUGAL
  • Presented by
  • Gideon J. Nasari
  • Managing Director
  • 25th October, 2007

2
MTWARA DEVELOPMENT CORRIDOR
  • Presentation Contents
  • 1.0 Background
  • 2.O Coverage
  • 3.0 Current Status
  • 4.0 MtDC Anchor Projects and Investment
    Opportunities
  • 5.0 Conclusions

3
MTWARA DEVELOPMENT CORRIDOR MAP
4
1. BACKGROUND
  • MtDC is an SDI which will create an economic
    growth zone of trans-border trade and investment
    linking Malawi, Mozambique, Tanzania and Zambia
    through a transport corridor to be served by the
    seaport of Mtwara on the Indian Ocean as the
    gateway for international trade.
  • In adopting SDI concept as a social-economic
    development strategy the Government of Tanzania
    (GoT) has mandated the National Development
    Corporation (NDC) to develop, coordinate and
    implement commercial and economic projects in
    the Mtwara Development Corridor

5
2. COVERAGE
  • MtDC Coverage
  • Population
  • Malawi 5,910 m
  • Mozambique 2,044m
  • Tanzania 8,433m
  • Zambia 3,340 m
  • Total 19,727 m
  • of 4 countries 25
  • Area
  • Malawi 49,000 km²
  • Mozambique 50,068 km²
  • Tanzania 160,785 km²
  • Zambia 94,667 km²
  • Total 354,520 km²
  • of 4 countries 38

6
3. CURRENT STATUS
  • Institutional Structure is already in place
  • 3 years Business Plan Completed
  • Over 330 projects have been identified and scoped
  • Mobilization of resources for project appraisal,
    promotion and marketing to attract investment is
    on going
  • Projects of regional significance that have
    immediate impact and catalytic have been
    prioritized
  • Identification of other projects is ongoing

7
4. ANCHOR PROJECTS AND INVESTMENT OPPORTUNITIES
  • Mchuchuma Coal and Liganga Iron Ore Projects
  • Mtwara Mbamba Bay Road
  • Heavy Capacity Ferry linking Mbamba Bay and
    Nkhata Bay.
  • Mtwara Port
  • Kiwira Karonga Power Inter-connector
  • Ruvuma Crossings
  • Mtwara SEZ/EPZ
  • Mchuchuma Mtwara Railway Line with spur to
    Liganga

8
4.1. Mchuchuma Coal and Liganga Iron Ore projects
  • Feasibility studies for Mchuchuma Coal to
    Electricity project completed
  • Initial Geological investigations have been
    carried out for the Liganga Iron Ore Project
  • Currently, the two projects are being prepared
    for a competitive procurement process that will
    invite private sector for implemetation
  • Transaction Advisor is expected to be in place by
    early November 2007
  • Invitation for Bids is expected by Sept. 2008

9
4.2 Mtwara Mbamba Bay Road (824km)
  • Feasibility Studies for upgrading the 824km
    Mtwara Mbamba Bay Road were completed in 2004.
  • Request for financing Detailed Design and
    construction is being finalized with various
    donors
  • Pre-qualification of tenders for
    Tunduru-Songea-Mbamba Bay Road Section (370km) is
    expected to start in January 08 and final award
    of tender is expected to be in July 2008
  • Pre-qualification of tenders for other road
    sections is also expected to be in January 2008
    including the 225km Tunduma Sumbawanga Road

10
4.2. Mtwara Mbamba Bay Road Project (Cont.)
11
4.3 Ruvuma Crossings
  • The crossings over the Ruvuma river will provide
    the necessary infrastructure required to open up
    regional trade and tourism between Tanzania and
    Mozambique, specifically in Tourism and wildlife,
    manufacturing, mineral exploration and general
    merchandise.
  • It is one of the anchor projects in Mtwara
    Development Corridor

12
4.3 Ruvuma Crossings Unity Bridge I
  • Unity Bridge I across the Rovuma is currently
    under construction at Negomano near the border
    between Cabo Delgado and Niassa provinces in
    Mozambique and Mtambaswala on the Tanzania side
  • Bridge is being constructed jointly by the two
    governments.
  • The Unity Bridge will cost US 28.9 million,
    including construction of 5km approach roads on
    both sides.
  • Construction works are in progress and 12
    supporting columns have already been erected
  • works expected take 36 months to complete

13
Unity Bridge I Cont.

14
Unity Bridge I Under Construction
15
4.4 Namoto-Kilambo Ferry Crossing
16
Kilambo-Namoto Ferry Crossing and Access Roads
  • Road access across the Ruvuma River is currently
    possible near the mouth of the river via a ferry
    service operated by the Tanzania government
  • The ferry service is, however, unreliable, mainly
    due to low water levels in the river and aged
    under-powered engines on the existing vessel.
  • The service only operates at high tide and
    carries an average of less than 20 vehicles per
    month.
  • The operations of the ferry are highly subsidised
    by the Tanzanian government.

17
Kilambo-Namoto Ferry Cont.
  • The existing 50 kilometre access road from ferry
    to Palma in Mozambique is impassable during the
    rains, even by four wheel drive vehicles.
  • the link from the ferry to the nearest paved road
    in Tanzania is at Mtwara is about 40 kilometres.
  • Existing traffic volumes are low, mainly tourists
    from South Africa and Mozambique, but these could
    be expected to increase with improved reliability
    of the ferry service and better road links.
  • Current commodities across the ferry (less than
    10 tons a day) include garments and other general
    merchandize

18
4.5 Kiwira Karonga Power Inter-connector
  • The broad sectoral goal of the Kiwira Karonga
    Inter-connector is to integrate the Tanzania
    National Power Grid with Malawi and finally with
    SAPP and the East African Power Grids.
  • The Kiwira and Mchuchuma Projects are envisaged
    to provide a power platform, industrial and
    mineral centre in the MtDC region
  • The Inter-connector will supply power to
    Kayekereka Uranium Mine (10MW), Mzuzu Medium
    Density Fibre Board Plant (30MW), Chipoka Heavy
    Mineral Sands (140MW)

19
Kiwira Karonga Power Inter-connector
  • Malawi hosts one of the largest and richest
    ilmenite deposits in Africa.
  • The mineral is contained in mineral sands in the
    form of mineable dune sands located around the
    shores of Lake Nyasa
  • Estimated reserve is about 1billion tons.
  • Plan to build a smelter with a capacity to smelt
    26 million tonnes over a 25-year project life.
  • the project would generate annual revenue of USD
    370 million.
  • Capital costs of USD 322 million
  • The successful commissioning of this project will
    make a significant contribution to the
    development of the two countries
  • Power demand estimated at between 70-140MW, for
    the smelter and two furnaces without a line
    up-grade.

20
4.6 Heavy Capacity Ferry Linking Mbamba Bay and
Nkhata Bay Ports across lake Nyasa
  • The Government of the United Republic of Tanzania
    and the Government of the Republic of Malawi
    signed an MoU in October 2003, for the upgrading
    of the Nkhata Bay Port, construction of Mbamba
    Bay Port in Tanzania and the commissioning of a
    heavy capacity ferry, between Mbamba Bay and
    Nkhata Bay
  • NDC prepared a Project Proposal, in collaboration
    with the Governments of Tanzania and Malawi, for
    carrying out feasibility study and submitted the
    same to DBSA-APU for financing under NEPAD.
  • NDC is still following up for getting funding
    for the study

21
4.7 Mtwara Port
  • Mtwara Port is one of the three major ports in
    Tanzania. The deep water port at Mtwara was built
    between 1948 and 1954 mainly for the export of
    groundnuts. Development of the deep water port
    was accompanied by railway construction from
    Mtwara to Nachingwea, which is now defunct
  • Mtwara Port is a large area of water with a depth
    of up to 32m and a quay dredged to -9.8m. There
    are no tidal restrictions for vessels entering
    and leaving the harbour, but there is an enforced
    length restriction of 175m due to the shape of
    the channel, particularly the MSEMO SPIT area.

22
Mtwara Port (Cont.)
  • Currently, the port can handle 400,000 metric
    tons of imports and export per annum. The port is
    mainly designed to handle conventional cargo.
  • Mtwara port can handle up to 750,000 MT with the
    same number of berths if additional equipments
    are put in place for handling containerized
    traffic.

23
Mtwara Port (cont.)
  • Future Expansion Programme
  • The Mtwara Port Master Plan envisages expansion
    of the quay wall Westwards by 400 metres and
    Eastwards by another 400 metre. This expansion in
    effect doubles the number of berths from the
    current number to five berths. The total area
    reserved for this expansion is 200 acres.
  • Besides the area of 200 acres reserved for port
    expansion, there is also an area of 60 acres
    which is reserved for port related development
    activities. This is an ideal location for EPZ and
    distribution activities. However, depending on
    the demand for land for development and
    commercial activities, the bulk of the 260
  • Long term plans include port expansion envisaged
    to handle coal and iron ore with an estimated
    capital investment of US 140 million

24
4.8 Mtwara SEZ/EPZ
  • The Mtwara EPZ/SEZ project near Mtwara port is an
    anchor projects in the MtDC with tremendous cross
    border development impact as a regional
    industrial platform, based on natural gas,
    mineral beneficiation, agro-processing, forest,
    fisheries and tourism
  • It will create growth to eradicate poverty, as
    well as delivery of essential economic services
    infrastructure within the context of the SADC
    Regional Strategic Indicative Programme (RISDP).
  • The objective of the project is to develop a
    global/regional industrial infrastructure based
    on the natural gas resources in Mtwara (Tanzania)
    and Cabo Delgado (Mozambique).

25
Mtwara SEZ/EPZ Cont.
  • Mnazi Bay Gas to Power Project
  • In Tanzania Artumas Group Inc. of Canada (AGI) is
    a dominant onshore/offshore acreage holder of
    approx. 756 square kilometres in Mnazi Bay, and
    has recently proven a large gas resource base,
    estimated at approx. 2.4 TCF-392 mmboe, in an
    energy starved region.
  • In Mozambique the company was recently awarded a
    large onshore Ruvuma exploration acreage of
    approx. 15,000 square kilometres, which is
    adjacent to Tanzania concession. In both the
    Tanzania and Mozambique concessions are
    surrounded by multi-national companies.
  • Recently AGI secured rights to an integrated
    energy project located in the southeast regions
    of Tanzania, East Africa. The USD 105 million,
    Mtwara Energy Project involves the development of
    an existing gas field, the construction and
    operations of a 27-kilometer pipeline, the
    installation and operations of a 24 MW power
    facility and the upgrade and operations of a
    regional transmission and distribution system,
    which are to be operated by Manitoba Hydro.

26
Mtwara SEZ/EPZ
  • The acute power shortage in the East African
    region has led AGI to initiate a feasibility
    study into a 200MW Mtwara Power Project.
  • The project located at the deepwater port of
    Mtwara will provide power and gas to a growing
    industrial region of Tanzania, covering an area
    of approx. 15,000 square miles.
  • The project will also provide sufficient off-take
    gas markets. Cash flow from the project provides
    and excellent rate of return and underpins a
    focused, high reward exploration programme.
  • AGI has executed a Production Sharing Agreement
    (PSA) with the GoT awarding and oil and gas
    concession comprised of a development block with
    the right to earn eight adjoining exploration
    blocks totalling 190,000 acres.
  • The value of the concession is enhanced by its
    coverage of a highly prospective delta system
    with production tested gas and oil further
    supported by known oil seeps in close proximity.

27
4.9 Mchuchuma Mtwara Railway Line
28
Mchuchuma-Mtwara Railway Line Cont.
  • The proposed Mchuchuma-Mtwara Railway Line with
    Spur to Liganga in Southern Tanzania linking the
    coal and iron ore mines at Mchuchuma and Liganga
    is backbone transport corridor for the Mtwara
    Development Corridor (MtDC)
  • About 330projects worth US 13.4 billion have
    been identified in the MtDC region to anchor the
    corridor in the sectors of minerals, Agriculture,
    forestry, manufacturing, trade and tourism
  • The 828km Mchuchuma Mtwara Railway Line with
    spur to Liganga is estimated to cost US 1.5
    billion capital investment

29
5. CONCLUSION
  • Potential Investment Opportunities in the sectors
    of Mining, Infrastructure, Tourism, Agriculture
    and Manufacturing are currently in place at the
    MtDC region
  • Legal and Regulatory Framework for investment is
    friendly
  • Investment facilitation institutions are in place
  • Investors welcomed to invest in MtDC
  • Contact NDC for information

30
  • END
  • THANK YOU
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