1 November 2012

Tanzania: Public-Private Partnership in Works for Fruit Plant

Dodoma — PUBLIC-PRIVATE Partnership (PPP) is being considered for the revamping of Tangold, a fruit processing plant in Korogwe, Tanga, the National Assembly was told on Wednesday.

The Minister for Agriculture, Food and Cooperatives, Eng Christopher Chiza, said the government is currently preparing to handover the facility to either the Export Processing Zones Authority (EPZA) or Tanzania Investment Centre (TIC).

"This will depend on their plans to revamp the fruit processing plant in partnership with potential investors," the minister said while responding to a basic question by Korogwe Urban MP, Mr Yusuph Abdalah Nasir (CCM).The MP wanted to know plans by the government to revamp the facility which during its heydays provided jobs and market for orange and mango farmers in the area.

Minister Chiza said the government has already received tentative programmes to refurbish the processing plant from both the EPZA and TIC, noting that a meeting to determine who will be given the plant between the two will be convened in the near future.

The minister told the august House that Tangold Korogwe and Tangold Dar es Salaam, then under National Milling Corporation (NMC)were in the year 1992 leased to Noble Azania Investment and Management Services (AIMS) for a period of ten years. According to Eng Chiza, the investor breached terms of contract by among others things changing the name of Tangold Korogwe to Noble Food Beverages Limited and shifting the machinery to the Dar es Salaam plant.

"In 1998, NMC specified the plants for privatization to which the leaseholder was asked to hand-back the facilities. AIMS went to court when it was awarded a court injunction barring privatization for the Dar es Salaam plant and the case is still pending," he said.

Adding: "After the court injunction for the Dar es Salaam plant, the then Presidential Parastatal Reform Commission (PSRC) acquired the Korogwe plant which was in sorry state as most of the machinery had been relocated and others stolen." The minister noted that on various occasions PSRC made announcement to privatize the facility but no suitable investor had been found.

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