Commentary on the agreement between the Emirate of Dubai and Tanzania

See also in the definition under “HGA” where it provides for DPW to enter into host agreement and then subsequently transfer the rights and obligations to the Project Company when it is formed. This is adding a layer of bureaucracy and a loophole for irregularities by adding a procedure of transfer of rights and obligations to another entity. Recommendation would be that the Project Company be registered in Tanzania in order to enter into the HGA with the Government of Tanzania. If the concern is that DPW may not fund the project entirely and that other investors may come in, this can be provided for already in the structuring of the legal entity i.e. limited company at the registration point of the company by providing for an unallotted share capital that will be allotted to a future investor should the need arise.

Recommendation: This provision implies again that DPW, Project Company may omit to comply and yet revocation or alternation will not be possible. Therefore, the interests of DPW and the Emirate of Dubai are secured but not the Government of Tanzania’s. Revocation, modification alteration and renewal of authorisations must be in accordance with applicable laws and regulations in Tanzania. Furthermore, in contemplating the revocation, medication, etc of authorisations, it would be best practice if the PCFC representing the Emirate of Dubai is notified and not consulted since this denies the powers of the institutions who are responsible for the said authorisations. The PCFC can be notified and given an opportunity within a specific deadline to rectify the situation so as to avoid revocation, medication, etc of authorisation.

Commentary on the agreement between the Emirate of Dubai and Tanzania

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