Dar es Salaam. After stalling for eight years, the government yesterday officially announced the kicking-off of the construction of the first phase of the Kurasini Trade and Logistics Centre project.
The new development for the first phase that will cost Sh30 billion comes after the government - working through the Export Processing Zone Authority (EPZA) - signed a contract yesterday with Suma JKT for the construction.
Industry and Trade minister Kitila Mkumbo said the Sh30 billion would be used for financing the construction of a fence as well as infrastructure, including roads, electricity and water supplies.
Part of the funds, Prof Mkumbo explained, would finance preparations of the master plan and feasibility study which will be conducted by the Bureau for Industrial Cooperation (Bico).
“The first phase of the project should be done by the end of this year or January next year so that we can invite President Samia Suluhu Hassan for inauguration early February,” said the minister.
Last August, EPZA announced the tender calling for competent strategic investors-developers to develop the Kurasini Industrial, Trade and Logistics Park project on a standard lease arrangement.
Prof Kitila said five investors did bid for the tender.
They include DP World and Agility of Dubai, UAE, Elsewedy of Egypt, Galco of Tanzania and the Shanghai Lingang Group Ltd of China.
“Those companies will have to prepare detailed project proposals. The best will be announced later on under a collaboration with the government,” noted Prof Mkumbo.
He added that the plans on card were for investors to start work by June, next year as part of efforts to make Tanzania competitive in the African Continental Free Trade Area (AfCFTA). The private investors would set up factory warehouses, assembly facilities for completely knocked down and semi knocked down kits; break-bulk processing and packaging facilities.
Also, they will set up agro-processing facilities (storage and value addition platform) production facilities for assembly facilities for electronic goods, machinery, vehicles equipment and other consumables. The area should also feature warehousing; light assembly and processing factory buildings; banking halls; agro-processing facilities (storage and value addition platform); administration and office buildings; hotel, restaurants and parking facilities.
The project will also include the construction of a One-Stop Service Centre (O-SSC) which would house EPZA staff and other Trade and Investment Facilitation Institutions such as Tanzania Revenue Authority (TRA-Customs), Immigration and Labour.
Other institutions are the Tanzania Bureau of Standards (TBS), Tea Board of Tanzania (TBT), Tanzania Smallholders Tea Development Agency (TSHTDA), Tanzania Mercantile Exchange (TMX) and the Tanzania Coffee Board.
The objectives for establishing the Kurasini Industrial, Trade and Logistic Park are to attract manufactures to establish light industries as well as to relocate manufacturing enterprises to Tanzania.
The project also was meant to facilitate transit and export trade with the East African Community (EAC), Southern Africa Development Community (Sadc) and the rest of the world.