Gulf signs with Tanzania Port Authority

Gulf Resources has entered into a MOU with the Tanzania Ports Authority to jointly determine the potential of a public private partnership for the development, modernisation and expansion of the Mtwara Sea Port, including regulating the associated Export Processing Zones and Free Port facility.

The Mtwara Sea Port is part of the Mtwara Development Corridor, which includes projects identified under the Spatial Development Initiative, including power generation and transmission, transport infrastructure and mining.

Gulf Resources Chairman Scott Reid said the agreement was an important stepping stone for Gulf’s aim to participate in the development of Tanzania’s Mtwara corridor project.

“In partnership with the Tanzania Port Authority we will be assessing the technical and economic viability of developing the Mtwara Sea Port,” Mr Reid said.

“The port is one of East Africa’s only natural deep sea ports, and forms the gateway to the development of all the Mtwara corridor projects. The key to the unlocking the projects is in the planning and development of the port itself,” he said.

Under the MOU, Gulf and the TPA will cooperate exclusively, and with equal interest at this stage, to determine the potential of a public private partnership for the MSP Project.

The two parties will jointly assist in the definition of sources of capital and leverage funding for the projects and will arrange completion of a conceptual technical and economic study.

The MOU is valid until the July 9, 2008, and is extendable my mutual consent until October 9, 2008.

Depending on the outcome of the conceptual study and agreement by both parties, it is likely another memorandum of understanding will be prepared detailing conditions, interest and obligations by each party prior to commencement of a feasibility study.

Source: Minebox