1. Introduction:
In an era of dynamic global trade and connectivity, strategic partnerships between nations have become vital catalysts for economic development. The United Republic of Tanzania and the Emirate of Dubai have recognized this potential and embarked on a groundbreaking Intergovernmental Agreement, solidifying their commitment to revolutionizing the development and performance of Tanzania's sea and lake ports. As I decode and analyse this Agreement, my aim is to clarify any misconceptions surrounding its content and objectives. Through factual information and unbiased analysis, I strive to provide a comprehensive understanding of the true essence and potential benefits of this Economic and Social Partnership. Together, let us dispel misinformation and embrace knowledge as the key to unlocking the transformative power of this collaboration, elevating our nation to new heights of progress and prosperity.
1.1. Dispelling Misinformation:
As a Tanzanian and an advocate of accurate information dissemination, I feel compelled to write this article as It has come to my attention that there is a significant lack of clarity and understanding among politicians, lawyers, media, and stakeholders regarding the true objectives and implications of this crucial partnership. Misleading narratives and misinterpretations have led to panic and uncertainty among the public, hindering the potential benefits that this agreement could bring to our nation's development.
My duty is to shed light on the intricacies of this agreement, providing a comprehensive and unbiased overview of its content, purpose, and potential impacts. By presenting factual information and relevant examples from successful port collaborations around the world, I aim to foster informed discussions and encourage rational analysis among Tanzanians. It is imperative that we, as a nation, understand the opportunities presented by this partnership to make well-informed decisions and harness its potential for the betterment of our economy, infrastructure, and overall socio-economic progress. Together, let us dispel misinformation and embrace knowledge as the key to unlock the true potential of this Economic and Social Partnership for the Development and Improvement of Sea and Lake Ports in Tanzania.
2. Decoding The United Republic of Tanzania and the Emirate of Dubai Intergovernmental Agreement:
2.1. PREAMBLE:
The United Republic of Tanzania, represented by the Minister for Works and Transport, and The Emirate of Dubai, represented by the Chief Executive Officer of the Ports, Customs and Free Zone Corporation, acknowledge their mutual interests and aspirations to enhance strategic cooperation in various sectors. This agreement arises from the visit of Her Excellency Samia Suluhu Hassan, the President of the United Republic of Tanzania, to the United Arab Emirates and Dubai Expo 2020, during which discussions on investment opportunities in Tanzania took place. The collaboration was further solidified through the signing of a Memorandum of Understanding (MoU) between the Tanzania Ports Authority (TPA) and DP World (DPW) during the President's visit to the Dubai Expo in 28th February 2022.
The State Parties recognize the shared goals expressed in the MoU, which center on cooperation between TPA and DPW for the development and improvement of sea and lake ports, special economic zones, logistic parks, and trade corridors in Tanzania. The Government of Tanzania seeks to attract investments to enhance the performance and efficiency of its ports, aligning with its vision and the global trends in maritime transport services. Leveraging its geographical location, Tanzania aims to serve land-linked countries in the region, fostering economic growth and socio-economic activities.
The Government of Tanzania's substantial investments in multimodal infrastructure, such as the Dar es Salaam Maritime Gateway Project (DMGP) and the Standard Gauge Railway (SGR), demonstrate its commitment to stimulating economic growth for the betterment of its citizens and the broader region. Recognizing DPW's expertise and global reputation in port development, management, operations, and supply chain solutions, the State Parties acknowledge the potential of their partnership to create a transformative impact on Tanzania's maritime transport services.
Both parties envision entering into specific project agreements, including Host Government Agreements (HGAs) and concession agreements, to implement various projects under this cooperative framework. With these shared objectives and aspirations, the State Parties are eager to solidify their collaboration through this Agreement to facilitate the procurement and execution of the envisaged Projects.
2.2. Unraveling Article 1 - Definitions, Interpretation, Construction, and Commitment to Enter into HGA.
Article 1 of the Agreement encompasses four essential aspects that form the bedrock of the entire document. Understanding these components is crucial for Tanzanians to grasp the Agreement's implications and potential benefits for the nation's development.
2.2.1. Definition of Terms:
Article 1 begins by providing clear definitions for capitalised terms used throughout the Agreement. These definitions are vital to avoid ambiguity and ensure that all parties share a common understanding of key terms. For instance, "Affiliate" is defined as an entity that has control over, is controlled by, or shares common control with another entity. This clarity prevents misunderstandings and promotes transparency between Tanzanian authorities, DP World, and related parties involved in the Project. Understanding these definitions equips Tanzanians with the knowledge to make informed decisions and participate effectively in the Project's implementation.
2.2.2. Interpretation:
The article emphasizes the importance of proper interpretation within the Agreement. While headings and divisions are included for convenience, they do not alter the Agreement's legal interpretation. This ensures that Tanzanian officials and the public can navigate the document efficiently without compromising its legal validity. Additionally, references to "this Agreement" encompass the entire document, including its Appendices and Annexes, providing a cohesive and comprehensive understanding of the Agreement's contents.
2.2.3. Construction:
The "Construction" aspect clarifies certain linguistic aspects of the Agreement. For example, words in singular form include the plural, words referring to any gender encompass all genders, and the term "include" is followed by "without limitation." Such linguistic guidelines ensure the Agreement is flexible, inclusive, and applies appropriately across various scenarios.
2.2.4. Commitment to Enter into HGA:
Another critical element of Article 1 is Tanzania's commitment to entering into the Host Government Agreements (HGA). These agreements are vital frameworks between Tanzania and the Project Company, outlining the principles and terms of the Agreement and other provisions decided upon by both parties. This commitment demonstrates Tanzania's dedication to fostering a cooperative environment and actively engaging in the successful implementation of the Project.
By understanding Article 1's definitions, interpretation guidelines, construction principles, and commitment to the HGA, Tanzanians can effectively participate in the Agreement's implementation and harness its potential benefits for the nation's growth and development. Transparency and clarity provided by Article 1 ensure that all parties involved can collaborate seamlessly, fostering a positive impact on Tanzania's economic, social, and infrastructural landscape.
2.3. Emphasizing Article 2 - Objective of the Agreement.
Article 2 of Part II - General Obligations, focuses on the central objective of the Agreement, which holds significant implications for Tanzania's economic growth and development.
2.3.1. Objective of the Agreement:
The primary aim of this Agreement is to establish a legally binding framework for cooperation between parties to facilitate the development, enhancement, management, and operation of sea and lake ports, special economic zones, logistic parks, trade corridors, and other critical port infrastructure in Tanzania. These crucial areas of cooperation hold the potential to catalyse the nation's economic progress and regional connectivity. The Agreement serves as a blueprint for collaborative efforts in capacity building, knowledge, skill, and technology transfer, as well as bolstering training institutions and providing essential market intelligence support. By formalizing this framework, Tanzania and involved parties, including DP World, can work together harmoniously towards shared goals, leveraging expertise and resources to create a lasting positive impact on the nation's infrastructure and economy.
Tanzanians stand to benefit significantly from this Agreement as it encompasses various strategic sectors that will contribute to national development. The emphasis on sea and lake ports, special economic zones, and logistic parks promises to bolster Tanzania's role as a regional trade and logistics hub. Efficient and well-managed trade corridors will facilitate smooth movement of goods and promote foreign investment, while the transfer of knowledge and technology will empower local communities and institutions, creating a skilled workforce and enhancing the nation's overall competitiveness. Additionally, the commitment to capacity building and market intelligence support signifies a long-term vision for sustainable growth.
By embracing the opportunities presented by Article 2, Tanzania can unlock its full economic potential, enhance regional integration, and forge strong partnerships that will shape a brighter future for the nation.
2.4. Enhancing Cooperation - Article 3.
In Article 3, the Agreement emphasizes the crucial aspect of cooperation between the State Parties to ensure the smooth implementation of Project Activities. The State Parties commit to establishing and maintaining favorable conditions for project execution, fostering a spirit of collaboration that includes regular meetings to negotiate and enter into additional agreements. To facilitate effective coordination, the Agreement establishes the IGA Consultative Committee, comprising qualified representatives from both parties. This committee will serve as a platform for exchanging information, consulting on matters related to the Agreement's implementation, and reporting to the responsible authority in the United Republic of Tanzania.
Furthermore, the Agreement sets forth provisions on inspection matters and information exchange between the State Parties to ensure transparency and confidentiality, safeguarding sensitive data shared during the cooperation.
2.5. Article 4 - Scope of Cooperation and Implementing Entities:
Article 4 outlines the Agreement's scope, which aims to facilitate cooperation in various areas as detailed in Appendix 1. Tanzania commits to informing Emirate of Dubai of any other opportunities in ports, free zones, and logistics sectors, giving Emirate of Dubai entities the chance to express interest and submit proposals for consideration. The Agreement specifies that the Tanzanian government designates TPA as the responsible entity for implementing areas of cooperation on its behalf. Additionally, the Emirate of Dubai nominates DPW and its affiliated entities as the implementing entity for Project Activities, with a key responsibility for raising funding for the development of the relevant Project Companies.
The use of "will" in negotiations and agreements can be beneficial as it creates a stronger sense of commitment and clarity. When parties use "will," they are making a firm promise or obligation, leaving little room for uncertainty. This can lead to a more straightforward and efficient negotiation process, as both parties know exactly what is expected of them. Additionally, it can help build trust between the parties, as they are more likely to take the commitments seriously. However, it is essential to ensure that the obligations stated with "will" are feasible and realistic to avoid any potential disputes or conflicts down the line.
By establishing clear roles and responsibilities for the involved entities, the Agreement ensures a streamlined approach to project implementation and resource management.
2.6. Article 5 - Rights to Develop, Manage or Operate:
In Article 5, the Agreement acknowledges DPW's exclusive rights to develop, manage, and/or operate the Projects specified in Appendix 1 Phase 1. These rights extend to DPW's Affiliates, further cementing their role in the development and execution of projects under the Agreement. However, the implementation of DPW's plans for project development is contingent upon concluding definitive Project Agreements, Land Rights, and HGAs for each relevant Project. To initiate the process, DPW is expected to present comprehensive proposals for project implementation, encompassing the necessary information and documentation, as agreed between DPW and TPA. The Agreement prioritizes Phase 1 Projects, as detailed in Appendix 1, ensuring that TPA refrains from considering proposals from other entities for these specific projects during the initial 12 months from the Agreement's Signature Date or until discussions between DPW and TPA for Phase 1 Projects have concluded, whichever is earlier.
This exclusive right provides DPW with the authority and autonomy needed to lead the Projects' implementation and ensure a cohesive approach to their development. By entrusting DPW with exclusive rights, the State Parties aim to benefit from DPW's expertise and global reputation in port development and management, enhancing the Projects' chances of success and contributing to Tanzania's economic growth and prosperity.
This provision reinforces DPW's role as a strategic partner in the development of these priority projects, contributing to their successful realization and overall economic impact on Tanzania.
2.7. Article 6 - Relevant Government Consents and Approvals:
Article 6 outlines the responsibilities of the Government of Tanzania concerning the necessary governmental approvals and consents for the execution of Project Agreements and ancillary agreements. The Government of Tanzania commits to ensuring that the relevant Project Company receives all required governmental approvals, land rights, investment incentives, and exemptions in accordance with the prescribed laws. Furthermore, the Agreement mandates the Government of Tanzania to assist DPW or the relevant Project Company in preventing or stopping any unauthorized interference in the procurement or implementation of the Projects, except when such interference is necessary for safety and security reasons acceptable to both State Parties.
By streamlining the approval process and protecting the Projects from unauthorized interference, the Agreement aims to foster a conducive environment for successful project execution.
2.8. Article 7 - Project Authorizations:
Article 7 underscores the importance of timely issuance, maintenance, and renewal of authorizations required for the implementation of approved proposals. The Government of Tanzania is committed to promptly issue, grant, maintain, or renew all necessary authorizations for the Project Company and/or TPA to carry out the approved proposals. This timely action is crucial to the successful and timely implementation of the Projects. The Agreement ensures that competent state authorities or agencies will facilitate and expedite the process of issuing, granting, maintaining, or renewing such authorizations upon receipt of applications or requests from DPW, TPA, or the relevant Project Company. Additionally, the Agreement guarantees that once granted, no authorization related to any Project shall be revoked, altered, modified, or fail to be renewed or extended without prior consultation with The Ports, Customs and Free Zone Corporation of Dubai (PCFC), representing the Emirate of Dubai, if such actions would significantly affect the Projects.
This provision aims to provide assurance of stability and predictability for investors by preventing arbitrary revocation or modification of authorizations. It fosters confidence, trust, protects investments, and encourages collaboration, supporting the successful implementation of the Projects for the benefit of Tanzania's economic growth.
2.9. Article 8 - Land Rights:
Article 8 focuses on ensuring the acquisition and granting of land rights to DPW or the relevant Project Company for each Project. The Government of Tanzania pledges to take all necessary actions to provide access, possession, and use of land rights in connection with each Project, safeguarding their integrity and protecting them from encumbrances, liens, or third-party claims. The Government will ensure that Land Rights remain available at all times and prevent any future infrastructure development near the Projects that could adversely affect them. The Agreement also stipulates that Land Rights should be clearly identified, subject to registrable lease, and provided to the Project Company without any hindrance, ensuring the uninhibited implementation of the Projects.
This commitment aims to establish a secure and stable land tenure system that fosters a conducive environment for the successful implementation of the Projects.
2.10. Article 9 - Investment Incentives:
Article 9 highlights the significance of DPW's investment in Tanzania and its potential to bring wider socio-economic benefits. Recognizing the value of such investments, the State Parties agree that specific investment incentives will be provided in accordance with relevant laws and established procedures in Tanzania, as detailed in the relevant HGA and Project Agreements.
The provision of investment incentives aims to attract substantial foreign investment and foster economic growth in the region, ultimately benefitting Tanzania's socio-economic development.
2.11. Article 10 - Confidentiality:
Article 10 addresses the confidentiality of information exchanged between the State Parties. Both parties commit not to furnish any confidential or proprietary information related to this Agreement, including technical and financial proposals, to any third party without prior written authorisation from DPW and TPA. This strict confidentiality safeguards commercially sensitive information, ensuring that sensitive details remain protected and not used for any unauthorized purpose. Furthermore, the State Parties pledge not to use any information derived from each other or any due diligence or other information provided under this Agreement for soliciting offers from third parties or undertaking competitive tendering in respect of the Projects Activities.
By upholding confidentiality, the Agreement seeks to maintain trust and secure the strategic interests of both State Parties in the successful execution of the Projects.
2.12. Article 11 - Non-Discriminatory Treatment:
Article 11 emphasizes the commitment of the State Parties to ensure non-discriminatory treatment in relation to taxes, duties, levies, and other charges imposed on the relevant Project Company, Project Activities, or persons (including suppliers or service providers) in accordance with the Agreed Fiscal Regime. The Agreement stipulates that the relevant laws and regulations will be applied in good faith, efficiently, transparently, and in a coordinated manner to ensure fairness and equity in treatment.
By adhering to non-discriminatory practices, the State Parties aim to create an environment that encourages investment and ensures equitable treatment for all stakeholders involved in the Projects.
2.13. Article 12 - Safety and Security:
Article 12 underscores the paramount importance of safety and security in all aspects of the Project Activities. The State Parties mutually agree that safety and security shall never be compromised, covering the Project Land, systems, persons, goods, and equipment within the Project Area and Territory of the United Republic of Tanzania. This includes ensuring "Government Security," which encompasses all aspects of security and safety for which Tanzania is responsible. The HGA (Host Government Agreement) shall establish a clear framework for allocating responsibilities and performance related to Government Security. Additionally, the HGA shall define actions for which the Project Company is responsible ("Project Company Security"), and provisions will be included to require consultation, cooperation, and coordination between the relevant State Party and the Project Company in implementing safety and security measures, consistent with Human Rights Standards.
The Agreement ensures that safety and security are prioritized throughout the Projects, safeguarding the well-being of all parties involved while adhering to international human rights norms.
2.14. Article 13 - Local Content, Employment, and Corporate Social Responsibility:
Article 13 outlines the importance of local participation, employment, and corporate social responsibility in the implementation of the Projects. The relevant Project Agreements shall include provisions concerning the development of Local Content Plans, which prioritize engaging local entities and persons in procurement and services, while adhering to required quality, health, safety, environmental, and technical standards. The plans also focus on employment and training opportunities for Tanzanian citizens, supporting local training institutions, and facilitating research and technology transfer. All preferences and reservations for local goods and services are subject to meeting acceptable quality and quantity standards at competitive market rates. Corporate social responsibility commitments and the retention and capacity building of Tanzanian nationals will also be addressed in the Project Agreements, ensuring a balanced approach that benefits the local community and promotes sustainable development.
2.15. Article 14 - Expropriation:
Article 14 emphasizes the private nature of the Project Activities, investments, and properties, affirming Tanzania's commitment not to expropriate, nationalize, confiscate, or take any measures that would have similar effects, directly or indirectly, without due process of law. In case of any expropriation for a public purpose, the Agreement sets conditions that must be met, including non-discriminatory measures and prompt, effective, and adequate compensation to the affected parties. The principles governing expropriation and compensation will be specified in the relevant Host Government Agreement and Project Agreements, providing a safeguard for the rights and investments of the project participants.
2.16. Article 15 - Environmental, Occupational Health, Social, and Safety Standards:
Article 15 highlights the State Parties' commitment to uphold environmental, occupational health, social, and safety standards in the implementation of the Project Activities. The Projects shall comply with Tanzania's prevailing laws governing these standards, ensuring responsible and sustainable development. Moreover, the implementing Project Company must comply with international standards for the prevention of marine pollution at sea and adhere to relevant International Maritime Organization (IMO) Conventions and other international port operation standards. The Agreement also acknowledges that the Project Company may be required to comply with comparable environmental and social standards imposed by multilateral lenders or financiers to ensure environmentally conscious and socially responsible operations.
2.17. Article 16 - Technical Standards:
Article 16 emphasizes the cooperation between DPW and TPA regarding technical standards for the Projects' design, development, construction, operation, maintenance, and more. The Parties will consult and share information to define and agree upon international operational practices. This collaboration ensures that the infrastructure and superstructure are developed and maintained according to international standards, fostering efficiency, safety, and adherence to global best practices in the execution of the Project Activities.
2.18. Article 17 - Labour Rights:
Article 17 underlines the importance of upholding labour rights throughout the implementation of the Project Activities. The State Parties agree that all actions of the Project Company involving the use of labour must align with Environmental, Occupational Health, Social, and Safety Standards, as well as Human Rights Standards. This commitment ensures that the workforce engaged in the Projects is treated fairly, with regard to safety, working conditions, and human rights, contributing to a socially responsible and ethical operation.
2.19. Article 18 - Taxes, Duties, and Other Charges (Fiscal Regime):
Article 18 focuses on the fiscal aspects of the Projects. The State Parties agree that taxes, duties, and other charges shall be imposed in accordance with the prevailing tax laws of Tanzania, ensuring compliance with the country's legal framework. Additionally, investment incentives and exemptions for taxes, duties, and other charges shall be granted in accordance with the relevant tax laws and the terms specified in the relevant Host Government Agreement and Project Agreements. This ensures a clear and agreed-upon fiscal regime that supports the Projects while aligning with Tanzania's tax laws and policies.
2.20. Article 19 - State Succession:
Article 19 addresses the issue of state succession. In the event that a State Party is replaced or succeeded by one or more other states concerning the international relations of all or part of its Territory, the successor state shall be considered a party to this Agreement from the date of replacement or succession. However, for this to happen, the successor state must notify the other State Party of its desire to become part of the Agreement within a reasonable period from the date of replacement or succession.
Legally, Article 19 can be seen as beneficial for Tanzania as it provides a mechanism to ensure the continuity of the Intergovernmental Agreement in the event of a change in government or territorial succession. This provision allows for a seamless transition and avoids any disruptions in the implementation of the Agreement, ensuring that the benefits and commitments agreed upon under the Agreement can be carried forward to the successor state and is in line with established principles of state succession under international law. By allowing the successor state to become a party to the Agreement, it promotes stability and certainty in the international relations and commitments related to the development and improvement of sea and lake ports in Tanzania.
This provision safeguards the Agreement's integrity and reinforces the commitment to its objectives, even amidst governmental transitions or territorial changes, promoting smooth cooperation and consistency in its implementation.
2.21. Article 20 - Dispute Settlement:
Article 20 outlines the dispute settlement process. In case of disputes arising out of or related to this Agreement, the Parties shall seek amicable resolution through diplomatic channels or the IGA Consultative Committee. If the dispute remains unresolved within ninety (90) days of presenting it through these channels, a "Declared Dispute" is acknowledged. At this point, either Party may submit the matter to arbitration under the UNCITRAL Arbitration Rules. Each Party shall appoint a member of the tribunal, and they will jointly select a third-state national as the tribunal's Chair. If appointments are not made within the specified periods i.e. within thirty (30) days, the Secretary-General of the Permanent Court of Arbitration may be invited to make necessary appointments. The arbitration process, including the seat, venue, language, and the award, is defined to ensure a fair and clear resolution mechanism. Disputes arising under the Project Agreements and HGAs are also subject to international arbitration in a neutral venue and seat. The arbitration process will take place in Johannesburg, Republic of South Africa, with English as the language used, and the award given by the tribunal will be in writing, detailing the reasons for their decision.
This process also applies to any disputes related to the specific agreements made for different projects. It's designed to ensure fairness and find the best solutions for everyone involved in case any problems come up during the projects.
2.22. Article 21 - Governing Law:
Article 21 establishes the governing law for this Agreement and related Project Agreements. The governing law for this Agreement is English Law, while the laws of Tanzania govern each Host Government Agreement (HGA) and the relevant Project Agreements. This provision clarifies which legal system will apply to different aspects of the contractual relationships between the Parties, providing legal certainty and consistency.
2.23. Article 22 - Subsequent Amendment:
Article 22 allows for future amendments to the Agreement through mutual agreement between the State Parties. Any amendments must be made in writing and require the signature, ratification, and/or adoption of appropriate documentation by the State Parties. This provision ensures that any modifications to the agreement are made with full understanding and agreement by both parties, safeguarding the interests and rights of both parties.
The requirement for "agreement by signature and ratification and/or adoption of the appropriate documentation" further reinforces the significance of any amendments. This means that both State Parties must officially endorse and formalize the changes through their respective legal processes, ensuring that the amended terms are legally binding and recognized by both governments.
This clause is crucial for maintaining transparency and stability in the partnership between Tanzania and Emirate of Dubai. It provides a structured and lawful approach for addressing any potential changes or updates needed in the future, allowing for flexibility while also ensuring that any modifications are made with the proper understanding and consent of both parties. By requiring written agreement and formal ratification, the clause ensures that the integrity and validity of the original agreement are upheld, preventing any unilateral changes and fostering a collaborative approach to amending the agreement if necessary.
Legally, the possibility of one party avoiding amending the agreement may exist if the agreement does not contain specific provisions mandating amendments or a dispute resolution mechanism related to amendments. In international law, agreements between sovereign states are generally based on principles of good faith and mutual consent, encouraging cooperation in implementing and amending the agreement. Avoiding the amendment process without valid reasons or attempting to unilaterally change the agreement could be considered a breach of the principle of good faith. However, if the agreement is silent on amendment procedures, negotiations between the parties may be necessary to find a mutually acceptable solution. Ultimately, the specific terms and provisions of the agreement will determine the legal obligations and responsibilities of the parties concerning amendments.
Overall, Article 22 serves to promote trust, accountability, and a balanced relationship between the State Parties in the course of their economic and social partnership.
2.24. Article 23 - Duration and Termination:
Article 23 defines the duration and termination conditions of the Agreement. The Agreement will remain in force until the occurrence of either the permanent cessation of all Project Activities or the expiration of all HGAs and Project Agreements (subject to any additions or extensions) and the resolution of any disputes arising thereunder. In case a Host Government Agreement is terminated before its term expires, this Agreement will remain in force for a period necessary for any State Party or the Project Company to assert rights, protect interests, or bring proceedings resulting from the termination. However, the termination of this Agreement requires the prior consent of the State Parties, which cannot be unreasonably withheld, preventing any unilateral decisions and ensuring that both parties have a say in the termination process. This clause protects Tanzania's sovereignty and gives the country a voice in the agreement's future.
The State Parties are not allowed to denounce, withdraw from, suspend, or terminate this Agreement under any circumstances, including material breach, significant changes in circumstances, severance of diplomatic or consular relations, or any other causes recognized under international law. This provides further assurance that the agreement is binding and stable, promoting long-term cooperation and mutual benefits for Tanzania and the Emirate of Dubai. By preventing denouncement, withdrawal, suspension, or termination under any circumstances, it ensures the commitment and continuation of the projects and activities outlined in the Agreement. It fosters a long-term cooperative relationship and protects against arbitrary actions that could disrupt the progress of the projects. In case of any disputes arising from the mentioned circumstances, Article 20 governs the resolution, offering a structured and impartial arbitration process to find fair solutions and prevent escalation of conflicts.
Overall, Article 23 provides the necessary legal framework to protect Tanzania's interests and ensure the continuity and stability of the agreement throughout its duration, offering reassurance to the country as it engages in this important economic and social partnership
2.25. Article 24 - Reservation, Language, and Appendices:
Article 24 discusses reservations, language, and the role of appendices in this Agreement. The State Parties have not expressed any reservations to any provision of the Agreement, meaning they fully accept its terms. The appendices, annexes, or addenda signed by the State Parties will be integral parts of this Agreement. To ensure clarity and uniformity, the Agreement is entered into in the English language, and the State Parties will use English for all communications related to the Agreement.
2.26. Article 25 - Entry into Force:
Article 25 outlines the steps for the Agreement's entry into force. After the Agreement is signed, the State Parties will take all necessary administrative and regulatory measures to enable the Early Project Activities to be performed legally by investors or the Project Company according to Tanzania's laws. The Government of each State Party will commence the process of ratification of this Agreement, if required under their respective domestic laws, within thirty (30) days of its signature. The provisions of this Agreement and the HGAs will apply to all Project Activities, even those undertaken before the Agreement's effectiveness, if necessary. The Agreement will enter into force upon the exchange of instruments of ratification under each State Party's laws, except for the provisions in sub-articles 1 and 2, which come into force upon the Agreement's signature by each State Party.
The inclusion of "Early Project Activities" with a clear definition in Article 1 and the commitment to ensure their legal execution in Article 25 provide a strong legal foundation for conducting necessary technical work and surveys prior to the final investment decision. This ensures compliance with Tanzanian laws, facilitates transparency, and promotes a smooth and efficient process for the successful implementation of the Projects.
2.27. Article 26 - Transposition of the IGA into National Law:
Article 26 obligates each State Party to take prompt action to make this Agreement and the relevant HGAs effective under their domestic law as the prevailing legal regime for the proposed Projects. This may include presenting drafts of necessary enabling legislation and expediting the passage of such legislation. Each State Party will keep the other State Party informed about the status of such enabling legislation.
2.28. Article 27 - Entry into Force Relationship Between This Agreement and Other International and Domestic Obligations in the State Parties:
Article 27 states that each State Party represents and warrants that, upon the Agreement's effectiveness and all relevant enabling legislation, it will not be bound by any other domestic or international agreement or commitment that conflicts with or hinders the implementation of this Agreement, the relevant HGAs, or any Project Agreements to which it is a party. This provision ensures that the Agreement takes precedence over conflicting obligations.
2.29. Article 28 - Competencies of the State Parties and Their Signatories:
Article 28 confirms that the execution and performance of this Agreement fall within the powers of each State Party's Government. It further confirms that the Agreement has been duly signed by competent public authorities, following the procedures set out in their respective national legislation for entering into international agreements of this nature on behalf of the State Party.
2.30. Article 29 - Performance and Observance of the IGA and Other Related Agreements and Support for Project Activities:
Article 29 obligates each State Party to fulfill its obligations under this Agreement, the relevant HGAs, and any other Project Agreements to which it is a party. The State Parties will ensure that their State Authorities act consistently with and satisfy their obligations under this Agreement and the relevant HGAs. They will also fully support the implementation and execution of the Project Activities and take all necessary actions for their successful implementation.
2.31. Article 30 - Stabilisation:
Article 30 addresses the stabilization of the legal and contractual environment relating to the Projects. The Parties agree to stabilize the environment in a manner satisfactory to both the State Parties and the Project Company. Details of this stabilization will be agreed upon between DPW or the relevant Project Company and TPA and reflected in the relevant HGAs. The stabilization will use the date of signature of the IGA as the reference date to address any changes in law or tax affecting the relevant Projects. Tanzania will take all necessary steps to give effect to the undertakings set out in the Project Agreements and HGAs within its territory.
2.32. Article 31 - Exchange of Agreement/Instrument:
Article 31 stipulates that this Agreement and all instruments of ratification will be exchanged between the State Parties, ensuring that all parties involved possess the ratified documents for mutual acknowledgment and record-keeping.
3. APPENDIX 1: AREAS OF COOPERATION.
3.1. Phase 1 Projects:
The Phase 1 Projects involve the development, management, and operation of various terminals and infrastructure at the Dar es Salaam Port, The General Cargo Terminal (Berth 1 to 4), and the Container Terminal (Berth 5 to 7), this includes the RoRo Terminal (Berth 0). Additionally, the Dhow Wharf Terminal and Passenger Terminal at the Dar es Salaam Port will be developed and operated by the Tanzania Ports Authority (TPA). The Kwala Inland Container Depot and the Kurasini port pre-gate will also be developed, managed, and operated under this phase
A new Container Terminal will be constructed at the RoRo & General Cargo Berths, with the RoRo yard reallocated to an Export Processing Zones Authority (EPZA) designated area through the construction of a Multi-Storey Car Park. This will be complemented by upgrading the RoRo yard to serve as a General Cargo & Container Yard. The project will further focus on providing modern Information and Communication Technology (ICT) Systems to enhance efficiency and visibility of port operations across Tanzania. Additionally, modern world-class maritime services will be made available to the Port of Dar es Salaam on a common user basis, and DPW will provide training and development support to increase the capacity of TPA staff in managing the port network.
3.2. Phase 2 Projects:
The Phase 2 Projects aim to develop logistics platforms, special economic zones, industrial parks, and other logistics infrastructure to support trade and transit corridors in East and Southern Africa, particularly landlocked countries. These projects are envisioned to boost the growth and development of trade activities and enhance connectivity in the region.
The Phase 2 Projects also involve the development, management, and operation of additional sea and/or lake ports in Tanzania. This will include upgrading and developing existing ports to cater to increased trade and connectivity between Tanzania and landlocked countries in the region. The specific ports to be developed will be proposed by the Tanzania Ports Authority (TPA) and agreed upon with DP World (DPW), the implementing entity for these projects. The objective is to strengthen trade ties and improve logistical efficiency to promote economic growth and regional integration.
Conclusion:
To my fellow Tanzanians, through clear and accurate clarification, it becomes evident that the Intergovernmental Agreement (IGA) between Tanzania and the Emirate of Dubai is not a threat to our nation's sovereignty or a means to sell our ports or country. Misinterpretations and negative perspectives spread by politicians and stakeholders who fail to understand the Agreement accurately can create unnecessary worry and fear among the public. However, by examining the facts and provisions of the Agreement, we can see that it is a strategic partnership aimed at fostering economic growth and development through improved sea and lake ports.
The Agreement outlines specific projects focused on enhancing port infrastructure, trade corridors, and logistics platforms, all aimed at boosting Tanzania's economy and regional connectivity. The Agreement is firmly rooted and adheres to international law with provisions ensuring adherence to domestic laws and procedures. It upholds state sovereignty and fosters mutual consent between the parties and provides mechanisms for dispute resolution and protection of national interests. The involvement of DP World, a reputable global player with a track record of successful port collaborations, ensures expertise and efficient implementation and Tanzania stands to benefit from increased foreign direct investment, modernized port facilities, and improved connectivity, which will foster economic diversification and job creation.
We can draw inspiration from successful partnerships around the world, such as the state of the art Doraleh Multipurpose Port in Djibouti, the transformative Jawaharlal Nehru Port Trust in India, and the efficient Port of Rotterdam and Port of Hamburg in Europe. In the United States, the exemplary collaboration between the Port of Los Angeles, Port of Long Beach, and PortMiami stands as a testament to the power of partnerships in driving port development and trade, leading to mutual benefits for nations and strengthening global economic ties.
Instead of succumbing to negative perspectives, let us trust the mandate we have given to the government and President Samia Suluhu Hassan's Administration to lead us to a better and prosperous future. Let us remain positive and well-informed, fostering open dialogue and cooperation with the government to understand and utilize the Agreement's potential for the benefit of all Tanzanians. With a clear understanding of the facts, we can dispel misconceptions and embrace the opportunity to unlock the true potential of this partnership, working together to build a brighter future for Tanzania and its people.
As Tanzanians, it is crucial that we remain vigilant and resolute, rejecting any attempts by politicians to exploit this Intergovernmental Agreement (IGA) for their own political gains and divisive agendas. Let us not be swayed by mere words on podiums, but rather, focus on constructive actions that benefit our nation as a whole. Instead of resorting to unnecessary panic, let us foster open dialogue and submit any disputes or concerns about the IGA through appropriate channels to the government.
Together, united as one, we can build a brighter future for Tanzania, seizing the opportunities presented by the IGA to promote economic growth and social development for all Tanzanians. Let us work hand in hand with our government, engaging in meaningful collaboration, to create a prosperous and harmonious society that benefits each and every citizen. Together, we can overcome challenges and build a strong and prosperous nation that we can all be proud of.
Thank you.
Written by Christopher Makwaia
Tel: +255 789 242 396
- The writer, is a University of West London graduate (formerly Thames Valley University) and an expert in Management, Leadership, Foreign Affairs, Diplomacy, International Relations, Conflict Resolution, Negotiations, Security, Arms Control, Political Scientist, and a self-taught Computer Programmer and Web Developer.
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