Dr Mgimwa said that the country’s 2012–13 budget “aims at addressing the economic challenges facing the economy”, which includes investing in energy infrastructure – specifically construction of the gas pipeline from Mtwara to Dar es Salaam.
Dr Mgimwa said "In addition, the government has identified pipeline projects that will be subjected to pre-feasibility appraisals with a view to identify the most suitable projcts that can be implemented useing the Public Private Partnership arrangement."
The Public Private Partnership Act was passed in 2010 to provide room for the prive sector to invest in public infrastructures and operate them with a view to provide public services at a reasonable cost, at the same time addressing peoples economic and social needs.
Dr Mgimwa said that the Government expects to borrow $US746 million worth of external non-concessional loans, which will be used to finance various development projects, including the pipeline.
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Specifically, Dr Mgimwa said that the Government will implement the construction of the pipeline using a $US1,225.3 million loan from the Export-Import Bank of China, which will be managed by the Tanzania Petroleum Development Corporation.
Further details are yet to be announced about the pipeline. The onshore distance between Mtwara and Dar es Salaam can be approximately 500 km, while the offshore distance around the bay is 398 km.
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