Govt, China Sign Deal on Gas Pipeline

The government has signed a memorandum of understanding (MoU) with China over the construction of a gas pipeline from Mnazi Bay in Mtwara Region to Dar es Salaam.

The signing of the MoU is a follow-up development on the deal since the government signed about Sh2 trillion commercial loan agreement with Exim Bank of China.

According to Prime Minister Mizengo Pinda, the move would see the immediate construction of the 532-kilometre pipeline.

"All procedures were already in place… it was only this memorandum of understanding which remained among formalities before the commencement of construction. The laying of the pipeline will now start immediately," Mr Pinda told journalists shortly after the signing ceremony at his offices in Dar es Salaam on Wednesday evening.

He said the Chinese were committed to completing the construction of the pipeline within one year, but the government would push them to finish the project before that period.The project is aimed at increasing the capacity of transporting natural gas for power generation as well as industrial and domestic use.

The plan involves construction of a 24 to 36-inch diameter pipeline from Mnazi Bay that would connect Somanga, Songo Songo gas field in Lindi Region and Dar es Salaam.

Mr Pinda said the partnership with China was the result of existing historical relations between the two countries.

The Chinese government has allocated about $20 billion (about Sh32 trillion) for development programmes in Africa. With the country's strong relations with China, Mr Pinda was optimistic that Tanzania would benefit from the allocated amount of money.

"We have to get rid of the mindset that financial support comes mainly from Western countries… countries like China play a significant role too," he said.