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Tuesday, November 4, 2014

AG reviewing TPA oil flow metre purchase documents

TPA Acting Director General, Madeni Kipande.
 
Tanzania Port Authority (TPA) has said the legal document for the purchase of oil flow meters is now in the Attorney General‘s chambers ahead of plans to buy and install the machines.
 
Speaking before the Parliament Standing  Committee on Economic Affairs, Industries and Trade over the weekend, TPA Acting Director General, Madeni Kipande, said currently, the contract documents between the authority and a firm that is to buy, install and handover the running of the machines to the authority later on, are in the AG’s office for verification.
 
“It is an unsolicited bid, the winner in the tender has a duty of procuring, installing and handing over flow meters to the TPA,” he explained.
 
Madeni said to ensure that fixed flow meters operate efficiently, TPA has already started to train its staffs on maintenance of the new digital meters that are expected to cost USD6.5 million (equivalent to 10.9bn/-).The move has come two years after Weights and Measures Agency (WMA) ordered the removal of oil flow meters at Kurasini Oil Jetty for inaccuracy in measurements that was scaring away the port’s market.
 
Kipande said if the documents are approved by December this year, the machines will be operational by September next year.
 
“It should be noted that in this transaction TPA is a not a direct beneficiary of the oil flow meters since all revenue collected goes to Tanzania Revenue Authority (TRA),” he clarified but conceded “…TPA just gets a small percentage of the revenue  from the oil flow meters.”
 
Commenting on the oil flow meters that WMA ordered to be removed, he said they were procured at USD4 million in 2004 (now equivalent to 6.7bn/-) and fixed at the Mtwara and Tanga ports but refrained from commenting as to the losses incurred due to the absence of oil flow meters for more than two years.
 
In another development,TPA Manager Awadhi Massawe said the authority is also planning to renovate berths 1 to 7 which according to him, are in need of major renovations to meet international standards and allow easy landing and offloading of cargo from big ships.
 
“We have a number of challenges including the lack of modern cargo offloading facilities and at times a ship is even unable to land on these berths… “ he revealed.
 
In a related point of information, the TRA Acting Commissioner for Custom and Exercise, Tiagi Masamaki, said during 2012/13 FY, TRA collected a total of 12 bn/- from TPA activities and that a good percentage of the total collections are from goods that enter the country through the ports.
 
On his part, the Economic Affairs, Industries and Trade Committee chairman Luhaga Mpina said as a way forward to improve services, TPA should now work on constructing its own oil reserve noting that the absence of petroleum reserves at the port contributes to delay and increase of running costs.
 
“One ship sometimes spends over six days to offload oil due to the insufficiency and inadequacy of pipes and our oil reservoirs belong to a private firm and this causes high running costs,” he said citing that the result is price burden to the final consumers who are forced to cover the demurrage charges associated with offloading delays.
SOURCE: THE GUARDIAN

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