Bid calls for state assets fail to draw competent investor

Lack of competent entrepreneurs specilising in meat processing has been cited as the reason for government’s failure to privatise the Mbeya Meat Plant.

Speaking to The Citizen yesterday, the spokesperson for the state-run privatisation agency -- Consolidated Holdings Corporation -- Mr Joseph Mapunda, said that bid calls to enable the sale of the company that formerly belonged to the defunct Tanganyika Packers, were advertised four times without competent bidders coming forth. 

“We have failed to secure reliable investors with enough capacity to run meat processing plant in terms of human resources and equipment,” he said.

According to him, the government has published calls for bids for sale of two public assets -- the Mbeya Meat Plant with Nsala Holding ground and over 14,000 hectares of Kitaraka Holding land.

A statement circulated by CHC yesterday shows that the two public assets which were run by Tanganyika Packers Limited (TPL) were potential areas for investors to develop into viable business enterprises.

The statement further showed that the TPL Mbeya plant, which is partially completed, covers a total of 102.14 hectares with a letter of offer with reference No. LO/188772/3 issued on September 1, 1999 and a holding ground of approximately 1,965 hectares located at Nsalala close to Songwe Airport with a letter of offer bearing Ref. No. LO/18771/3 issued on September 1, 1999.

“Consolidated Holding Corporation (CHC) hereby invites interested investors to submit bids for the purchase of TPL Mbeya Meat Plant together with its Nsalala Holding Ground,” reads part of the statement. 

Bid documents were available from CHC at the price of Sh100,000 or $100 -- being non-refundable, according to the statement.

“The construction of this meat plant started in 1975 under the sponsorship of the Danish government. The project was expected to be completed in 1978. 

However, due to financial difficulties, the construction of the meat plant stopped in 1985,” the statement reads further in part.

“By that time, 86 per cent of civil works, 82 per cent of mechanical works and 85 per cent of electrical works were completed. The meat plant has an in-built capacity of slaughtering 250 cattle per shift of eight hours per day.”

Kitaraka Holding Ground is designated as farm No. 35 Kitaraka, covering a total of 14,531 hectares of land which lies along the central railway line and the main road from Tabora to Manyoni, Singida, according to the statement.
The farm was formerly used by TPL as cattle holding ground.
Source: The Citizen, www.thecitizen.co.tz, reported by Ludger Kasumuni in Dar es Salaam

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