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
-
2MTWARA 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
3MTWARA DEVELOPMENT CORRIDOR MAP
41. 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
52. 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
63. 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
74. 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
84.1. 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
94.2 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
104.2. Mtwara Mbamba Bay Road Project (Cont.)
114.3 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
124.3 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
13Unity Bridge I Cont.
14Unity Bridge I Under Construction
154.4 Namoto-Kilambo Ferry Crossing
16Kilambo-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.
17Kilambo-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
184.5 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)
19Kiwira 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
214.7 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.
23Mtwara 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
244.8 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).
25Mtwara 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.
26Mtwara 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.
274.9 Mchuchuma Mtwara Railway Line
28Mchuchuma-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
295. 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