The policy is now out as a draft stage. This is a very important policy for Tanzania because at the moment almost 50% of our power (UMEME) comes from natural gas, more than 30 industries use this gas as a source of power for production hence substitution to TANESCO hydropower and there are many more plans on how to use these huge discovered resources in our country in future. These include: use of natural gas for running cars, domestic cooking to replace environmental unfriendly sources such as mkaa and Kuni (charcoal and firewood), industrial use etc.

The draft policy document has been distributed in various media for us to comment and provide suggestions to our government. As forum members lets discuss and advise our government appropriately. Let us do it and not wait for complaining in future as the policy is very vital for the current and future generations. As the minister responsible for the natural gas put it “natural gas resources belongs to the people of Tanzania and must be managed in a way that benefit the entire Tanzanian society”.

In discussing this draft policy the following issues could guide us:

To download the draft natural policy click the following link:

http://tzonline.org/upload/TheTanzaniaNaturalGasPolicy.pdf

Right now the Latin Americans or the South American are getting away from Neo Liberalism and away from the strangle hold by the Bretton Woods institutions. They are nationalising critical aspects of their industry as seen by Argentina Nationalising the oil Company that was originally Argentinian, The Chilians nationalising the big Copper Mine which was owned by Anglo American as for the Brazilian the oil transport and other key industries are in state hands. In Africa nchi zetu zinatafuta wawekezaji investors kwa mbinu ya kuchukuliwa kama washika dau au wahubiya wazalendo local share holders but in the process wameuza nchi.

That what is happening in our neighbouring country of Uganda where the Clan is becoming the major local industrial ,ogul being share holders in the Tullow oil investments and the first lady being a special minister for the under developed area of Karamajong lakini ukweli wa mambo ni kwamba Karamajong is the Gold centre of Uganda the green stone which start in Mpanda going to Tabora Dodoma Singida Nzega Shinyanga Mwanza, Geita on to Mara across the border to the Kavirondo area of Kenya going to Karamajong and into Southern Sudan. That is the East African Rand a gold reach area.

But going by Tanzania which has Africa most profitable gold deposits in that they are the richest about 15 grams gold per tonne of ore, South Africa ores are just 5% per tonne of ore that is the riches and secondly Tanzanian gold seams are almost surface while South Africa is mining at over 3 Kilometres under ground having massive winching cost that necessitates initial under ground sorting of ore. However Tanzania sees nothing of that but individuals who have become super rich. Haya Watanzania kazi kwenu mtabaki mkilalamika. Its high time Tanzania takes major ownership of their mineral sector Ghadafi had those ideas when he proposed forming the African Monetary Fund with an initial injection of 100 Billion Dollars that was why they removed him. Like the South Americans we should form an African Bank of the South to finance African resources under African ownership other wise tuta lia.

Thanks - keep watch!

If we cannot justify that there is any contribution what so ever, can anyone explain to me what does $10billion of gold exports since 1999 has on our balance of payment cum deficit?

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The participation of Tz is through TPDC which is the licencee. TPDC owns the licence, at max 20% as in the petroleum law. The foreign company is only a contractor. So, even during exploitation, that is why there is what is production sharing agreement.

Look at the current petroleum law and you will see what are these definitions.

Of cause there are many items which you need to be very familiar with to understand what portion of the oil/gas if for the local tanzanian. At the end of the day however, is how the government is using whatever is received from the revenues. If it is used to buy mashangingi or foreign travel, then however good the policy might be on paper you will not see it on the street.

I hope it is a useful input to the understanding of the policy.

I will limit my comments to two points that I feel have been omitted in the Policy Draft: namely (i) ensuring that the foreign private sector is not left alone in gas exploration and exploitation, and (ii) to undertake strategic phasing of the development of the sector.

Very briefly: the Draft Policy does not talk about participating in natural gas exploitation (extraction) at the production base. The government has to develop a mechanism to take up activities from the drilling stage. This is to prepare for Tanzania to gain useful experience in gas exploration, drilling and evaluation so that in the future, Tanzanian organizations can do this work on their own (self-reliance). We cannot rely on inviting foreigners forever. The advantage of Tanzanians’ involvement is to acquire the hard experience in these basic skills (learning by doing) and also to monitor to prevent any possible leaks in revenues from the work floor. It is inconceivable that such strategic positioning can be undertaken by our domestic private sector investors alone (first of all they have no in-depth presence yet or skills in the natural gas operations). The government has to be involved: use budget resources or borrow.

The second point is linked with the first one. We should not be in hurry to bring out all the gas already proven to exist. The development of downstream gas processing activities such industrial production of fertilizers, plastics, medicines etc , the development of our own skills through on-site experience and from formal training institutions, the reinvesting of revenues in other strategic sectors through the Gas Revenue Fund, etc, all will take time to materialize and to provide tangible dividends. Gas production should be rationed over the medium term. And while we exploit the exiting gas wells, we need to continue also exploring new locations so that gas exploitation across the country can last for many years to meet our future economic needs. The need for strategic phasing of exploitation is also meant to hedge against developing the Dutch Disease.

Deo Mutalemwa

What we have with SUMATRA, EWURA and TCRA should be avoide from the policy onset. Specific comments have been made on the draft policy document attached.

Firstly, specific objective are not SMART, no action verbs that show exactly what to be achieved appear. The use of vague words such as “ensure, demands, conducive environment… etc’ dominate the entire document even in Policy statements that hold the government accountable of what to be achieved of the policy, hence we lack basis to hold it accountable. These words cannot be operationalized, cannot be measured, and hence cannot be attained!

Secondly, the widely and most important term, “Natural Gas Value Chain” had not been defined in the definition of terms, yet had been pointed several time as in building local capacity and “Ensuring” people benefit from the “Natural Gas Value Chain”. This need be defined explicitly, pointing out the nodes of the chain that will be exclusive to local people and companies with respect to their “capital and skills”.

Thirdly, the policy look more scholarly, as a literature review than action oriented document that streamline the flow of benefits to the majority, falling in the same trap as the western; “…Most goods and services are supplied by foreign companies due to inadequate capitals and request skills to Tanzanians” I don’t have evidence against, but with all the banks and universities (UD 50 yrs now), and those professors and other experts in the field, we still claim that! Or is it that the government despises its own reserve skills and capital and creating “conducive environment” for the benefit minority in power?

Fourth, the policy does not highlight the priority area of channeling the natural gas, rather gives areas where this will be used as a substitute for wood charcoal, gasoline, and hydroelectricity, etc. The policy need to identify critical points of the value chain at which the investment will give a huge return with multiple spillover effects to the lives of large number, lowering costs of living significantly without necessarily taking part directly in the natural gas value chain.

Fifth, transparency and accountability goes beyond collecting and disseminating information of natural gas activities, nothing had been put out on how the government (and its officials) will be held accountable for what they do with regard to natural gas activities, what exactly will it do to promote transparent and accountability is not answered.

Lastly, giving mandate to NGOs and Civil Societies to hold the government accountable in natural gas activities, yet we all know that by virtue and their establishment and jurisdiction, they can’t, is a wastage of time and creating room for corruption, and this is one other major weakness of the policy. The policy need to explain explicitly how the people will hold the government and (its officials) accountable. A lot of stories on Monitoring and evaluation, the plan are not clear of what exactly the government will do in monitoring and evaluating natural gas activities. Likewise, Tanzania’s competitive advantages and how this natural gas will transform the economy and lives of the large number of people in Tanzania are not clear, need to be addressed as well.

Thanks: Mungu Ibariki Africa, Mungu Ibariki Tanzania,

Its time now for all politician to stand firm and to regulate those policies that seemed as laws..and its our duty to critisize whenever we find problems,do not stay and wait just do something.Emen...

John

The draft Natural gas policy for Tanzania has been distributed in various media for us to comment and provide suggestions. As forum members we invite you to discuss and advise our government appropriately. Let us do it and not wait as the policy is very vital for the current and future generations.

As the minister responsible for the natural gas put it “natural gas resources belongs to the people of Tanzania and must be managed in a way that benefit the entire Tanzanian society”.

In discussing this draft policy the following issues could guide us:

I. How does the draft policy meet the current and future needs of the nation?

II. One key area in the policy is the regulation aspect. How should the sector be regulated (section 5.1.3)

III. What capacity areas need to be worked on, and therefore be included in the policy statements?

IV. What else need to be included in this policy?

You can download the draft natural gas policy from the following link: http://tzonline.org/upload/TheTanzaniaNaturalGasPolicy.pdf

KARIBUNI SANA!