A mega project worth 1.8 billion US dollars (over 3.8 trillion/-) to put up a fertiliser plant at Kilamko in Kilwa Masoko District, Lindi Region, is set to start in December, a move that might see the farm input go down as a result of competition.
The plant, to be built by Tanzania Petroleum Development Corporation (TPDC) and three private companies will use natural gas as both a source of energy and feedstock for production, hence conserving the environment.
TPDC Director of Downstream Operations, Dr Wellington Hudson, told the ‘Daily News’ recently that the plant will produce 3,850 tonnes per day, adding that TPDC was finalising payment of compensation to 24 residents to pave way for the project.
“TPDC will hold up to 20 per cent shares in the joint venture business with three foreign companies,” said Dr Hudson during a familiarisation tour by the corporation’s board of directors.
He mentioned the companies in the business as the Ferrostaal Industrial Project from German, the Denmark based Haldor Topsoe Company and Fauji Fertiliser Company from Pakistan.
“We’re finalising the issue of compensation to residents to pave way for the project, which will be carried out for 40 months,” he said. Dr Hudson said the first plant, to be built in Kilwa Masoko, would create a number of employment opportunities, adding that it would also fetch foreign currency from fertiliser exports.
Kilwa District Land Officer, Mr Ernest Mwakang’ata, said the district’s authority has started the process for the payment of compensation to 23 residents at the area, pointing out that although the 820-acre land is owned by TPDC, it had since 1989 been encroached by residents in the area.
“The residents had encroached upon the area after TPDC failed to develop the area for a very long time,’’ the land officer told reporters. However, Mr Mwakang’ata said TPDC have agreed to pay compensation to the residents to vacate the area.
The firm has also allocated 400 acres more to accommodate residential needs of the villagers. A TPDC board member, Judge (retired) Josephat Makanja, expressed delight on the project, saying the plant would boost national development.
Daily News