GOVERNMENT changing to certain policies and ongoing due diligence exercise are eagerly being followed by
"As with all projects of this nature, the Bank needs to carry out its due diligence comprehensively. Currently, the Bank is still waiting for certain policies to be passed by the government before the project structure can be finalised and the financing completed," Mr Rurangwa said in an emailed message to Business Standards.
He said because the project is a public private partnership (PPP) venture involving the government and
IFAD's Mr Paqui shared the same sentiments as AfDB's Rurangwa as the giant project remains stalled since 2006 because of land tenure problems, massive sugar smuggling which distorts prices in the domestic market and lack of incentives. "Regarding the project you are enquiring about, it is too early to provide you with information.
Kindly note that from IFAD's side, the project is still in conception phase, as such, the design phase will start shortly," he wrote.
Mr Paqui further noted that after the design stage, the project will be submitted to the IFAD executive board for approval. Agriculture, Food Security and Cooperatives Minister, Engineer
"We are addressing concerns by the investor and currently there is a cabinet paper that will make important decisions by next July," Engineer Chiza said.
"Very soon we will have strong regulations to make sure unnecessary sugar imports are stopped," the Minister noted. The country's sugar industries produce less than 350,000 metric tonnes of sugar against demand of over 500,000 tonnes per annum.
But importation and smuggling of cheap sugar from
"Our shareholders and development bankers cannot invest massively in this project before the government addresses policy and regulatory issues raised," said Agro EcoEnergy Tanzania Executive Chairman Mr
The Agro EcoEnergy project is the first new integrated sugar project in
In its latest annual report, Grow Africa terms the Bagamoyo project as promising and with potential to transform the country's struggling agriculture sector.
"For its part,
In response, the government has piloted a cooperation framework that balances the interests of all stakeholders, striking a win-win deal whereby local communities will receive a 10 per cent non-dilutable shareholding in the project company
It further noted that a 15 per cent bonus -share stake will be offered to the public after 18 years of operations in exchange for Bagamoyo EcoEnergy being granted a 99-year lease of land free from encumbrance.
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