The proposed $10 billion China backed port project in Tanzania has hit a roadblock with the two sides disagreeing on terms of the infrastructure investment. China Merchants Holdings International, China’s largest port operator, signed a framework agreement with Tanzania In 2013 to build the port and a special economic zone. The deal for the Bagamoyo port was signed by the former Tanzanian President Jakaya Kikwete, during a visit of Chinese President Xi Jinping to the country. The Project also has financial support by Oman’s State General Reserve Fund. The Port was expected to transform Tanzania into a regional trade and transport hub and ease the congestion at the port in the commercial capital Dar es Salaam. The proposed port, to be built in Bagamoyo, 75 km (47 miles) north of Dar es Salaam, would be bigger than Kenya’s port at Mombasa, which currently acts as east Africa’s trade gateway. The plan also included an industrial zone and rail and road links to the East Africa region hoping to exploit new oil and gas finds.
Speaking about the stalemate, Deusdedit Kakoko, director general of the state-run Tanzania Ports Authority (TPA) stated that the terms offered by the Chinese company were unviable and urged the Chinese side to modify the terms. On the other hand, it was reported by the Chinese Merchants Holdings that in spite of several years of negotiations with the Tanzanian side, they could not evolve a legally binding agreement. The company statement said“ This project is a purely commercial, investment project and China Merchants Port has in its overseas investments always followed the principles of commercial feasibility and win-win cooperation,”
