Business_Info
Monday, November
1, 2004
EU Gives
$41m for Zanzibar Port Repairs
The EU will not hesitate
to halt the disbursement of funds if any political unrest erupts in Zanzibar
By JOSEPH MWAMUNYANGE
SPECIAL CORRESPONDENT
THE EUROPEAN Union has provided
financial assistance of $41 million for the reconstruction of the dilapidated
Zanzibar port, while asking the Isles government to maintain peace and
stability.
The deal was signed in Dar
es Salaam last week by the acting head of delegation of the European Union
in Dar es Salaam, Anthony Knott, and the Permanent Secretary in Tanzania's
Ministry of Finance, Gray S. Mgonja.
Mr Knott said that funding
of reconstruction was important because it reinforced the EU’s commitment
to support Tanzania's national transport policy of improving access to
local, regional and international markets.
"You are all aware that the
Malindi port in Zanzibar acts as the main gateway for cargo to and from
the Isles," said Mr Knott. "Hence its safety and its ability to operate
to the highest standards of efficiency are of the utmost importance to
the economic development of Zanzibar."
However, Mr Knott cautioned
that the EU would not hesitate to halt the disbursement of the funds if
any political unrest erupts in Zanzibar. "By next October, the contractor
will be in the middle of construction of the new wharves and throughput
of the Zanzibar port will be below its normal capacity. If there were to
be any civil unrest during this period, it might lead to an interruption
or even cessation of the construction work. You can imagine what a catastrophe
it would be for Zanzibar if it was left without a fully functioning port."
The EU official was alluding
to the bloody riots that took place in Zanzibar before and immediately
after the 2000 general election. The clashes between the police and supporters
of the opposition the Civic United Front (CUF) led to the deaths of 31
people on the island of Pemba and some 2,000 people fleeing to Mombasa
in Kenya. All except 100 have since returned to the Isles.
The EU had at one point suspended
funding for the rehabilitation of the port because of that political impasse
that arose out of the botched first multiparty elections in 1995.
Referring to the defects
in the work by the original contractor for the Zanzibar port, Mr Knott
said that the financing agreement signed between the EU and the Tanzania
was important because "it enables rectification of a situation that had
gone wrong in the past. Defects in the work carried out by the previous
contractor had resulted in serious deterioration of the wharf structures."
He added, "The damage was progressively getting worse and hampering port
operations to the extent that part of the wharves had to be closed down.
If left untouched, the wharves will certainly collapse."
Mr Knott also said that the
arbitration proceedings against the original contractor were at an advanced
stage. The Zanzibar Minister for Communications and Transport, Adam Mwakanjuki,
said in Zanzibar on October 20 that the adjudicators from the International
Centre for Arbitration in Paris, France, were expected to arrive in Zanzibar
this month to verify claims by the Zanzibar government that the contractor
who built Malindi port 11 years ago, did substandard work.
Mr Mwakanjuki said that Arbitrators
were coming to ascertain the validity and grounds of Zanzibar's claims
against the Italian contractor, Cogefar.
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