Tanga: A new investor who plans to establish a company to coat gas and oil pipes for the Hoima and Tanga Crude Oil Pipeline has signed an agreement to lease the 600,000 square meter area at Tanga Industrial area.
The area that is situated at Pongwe was formerly set aside for a Korean industrial development venture that did not materialise.
According to the Tanga City Director, Daudi Mayeje, the Director of the Company known as Shawcor, Robert Austen, has signed a three month agreement to hold the area until the company is ready to start execution of its project.
Mr Mayeje said that under the agreement, which he revealed was the second, the Tanga City Council is set to net $90,000 (about Sh180 million) for the three months as security for holding the area. He said after that the two sides would sit and enter into a new agreement which would be more beneficial to the council.
He said that the area was previously set for a $277 million industrial development project, known as Tanga Economic Corridor, that was earmarked for implementation between the Tanga City Council and Korean company, Good PM Group through a company known as Africa Future Forum.
The area has been picked because of its strategic positioning as railway line which passes nearby makes it easy to offloading and loading heavy cargo from the Port of Tanga or from Dar es Salaam.
Mr Mayeji said the council was already in the process of setting proper infrastructure including water, power and roads.
“As for the water we are preparing a water project in collaboration with the Tanga Urban Water and Sanitation Authority,” he revealed.
He stressed that they were not selling the site but were only leasing it and when the project ends all the infrastructure would be handed over to the Council.
Speaking at the occasion, the Tanga Mayor, Mustapha Selebos, said the council was relieved to acquire the new investor, saying what the council gain the initial agreement would increase the ability of the council to serve Tanga City residents through social projects.
Mr Selebos called ion Tanga residents to extend close cooperation with the company which he said would increase employment opportunities.
Under the former venture with the Korean company, 17 new industries were earmarked to be constructed in the area.