Pipeline, oil refinery projects up for revisit

Mr Masele

The government is revisiting plans to construct the Dar es Salaam-Mwanza-Kigoma pipeline and an oil refinery, after Noor Oil and Industry Technology (NOIT) failed to adhere to contractual agreements.

The Deputy Minister for Energy and Minerals, Mr Stephen Masele, said the projects were important for the development of the country. 

He said the government signed implementation agreements for construction of the pipeline and an oil refinery with a US-based firm in April 2007.

"The two projects have not taken off yet because NOIT has failed to implement basic agreements that are stipulated in the signed contract," he explained.

The deputy minister was responding to a basic question from Ms Elizabeth Batenga (Special Seats - CCM) who wanted to know when construction of the Dar es Salaam to Mwanza pipeline will commence and if the government could have uniform price for fuel in the whole country as is the case with sodas and beer.

Mr Masele said due to the free market system, it is difficult to have the same price for fuel in the country because each oil company has its own system and costs for fuel.   

He however noted that the Energy and Water Utility Regulatory Authority (Ewura) as the regulator, continues to put forth cap prices for fuel after considering transportation costs.

Source: The Daily News, http://www.dailynews.co.tz

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