This archive report was first published on 4 November 2019.
On June 1, 2019, negotiations over the $10 billion Bagamoyo port development in Tanzania hit an impasse. The project, backed by China Merchants Holdings International (CMHI), has been in the works since 2013.
According to Deusdedit Kakoko, director general of Tanzania Ports Authority, the government had told CMHI to back down on certain parts of the proposed deal to make it more beneficial for Tanzania. However, CMHI disputes this claim, stating that it had not received any notice from Mr. Kakoko.
CMHI also alleges that Mr. Kakoko skipped parts of the negotiations and provided 'fake and fabricated information' to the media. The company claims that the parties had already agreed in principal to a 33-year lease, contrary to Mr. Kakoko's statement.
The Tanzanian government had expressed concerns about the terms sought by investors, including restrictions on the development of other port facilities and exemptions from tax collection. However, CMHI denies that these requests were ever discussed in meetings with the government.
CMHI's statement, issued on October 25, 2019, claims that the government asked the investor to do dredging work on its behalf and agreed to refund the investment through wharfage.
