AfricaPress-Tanzania: THE GOVERNMENT is finalizing the process of establishing a joint venture between Tanzania and China to oversee the Liganga steel and Mchuchuma coal projects in Ludewa district in Njombe Region.
The Minister of Industry and Trade, Geofrey Mwambe, made the remarks over the weekend when the Parliamentary Standing Committee on Industry, Trade and Environment visited the Mchuchuma Coal Investment Areas in Nkomang’ombe Ward and Liganga Iron Mundindi Ward in Ludewa District.
Mwambe said, despite the creation of the company, the government is in the process of concluding contractual talks with China’s Schuang Hongda company and that once completed, the government and the investor will pay compensation to the people who bid on the projects.
“The compensation process is in place, the valuation has been done and the chief valuer has approved it, all that is left is to end the negotiations with this investor.”
“This project is being implemented between the government and China’s Schuang Hongda company and we are developing a new company called Tanzania China International Mineral Resources Limited and together we will pay this compensation,” he said.
Mufindi South MP for Iringa Region and Chairman of the Parliamentary Standing Committee on Industry, Trade and Environment, David Kienzile, said the Mchuchuma coal project is expected to generate 428 million tonnes and 600 megawatts of electricity.
He said of those, 250 megawatts will be used to dissolve Liganga steel and 350 megawatts will be connected to the grid electricity through Makambako in Njombe region.
Ludewa State MP Joseph Kamonga called on the government to compensate the people who rented the areas so that they would be free to run activities outside the project areas.
“I urge the government to pay them compensation which is about 11 billion, this area remains the property of the government and the people to carry out their activities elsewhere,” said Kamonga.
Acting Managing Director of the National Development Agency, Rhobi Sattima, said the government has given priority to Liganga and Mchuchuma projects so that the people continue to be patient while the government continues to complete negotiations with the investor.
Njombe Urban Constituency MP, Deo Mwanyika said, MPs from Njombe Region are advising the government to implement the projects on time to bring productivity to the nation.
