THE government has received a dividend of 4.35bn/- from the Tanzania-Zambia Pipeline Co. (TAZAMA) apparently tied to the visit by President Samia Suluhu Hassan to Zambia, the sector minister says.

Dr Doto Biteko, the Energy minister and deputy prime minister, received a dummy cheque for that amount in Dar es Salaam yesterday, recalling that during the visit, the president emphasised effective project management to deliver tangible results and enhance people’s lives in the two countries.

Officials from Zambia were present at the ceremony, with the minister noting that it is the first dividend payment since 2019. He praised TAZAMA board members and Energy ministry officials for enabling this achievement. 

“It reflects the positive outcomes of President Samia’s visit to Zambia, where she directed us to manage these projects effectively to benefit our people," he specified.

He asked the TAZAMA management to exercise effective management of the pipeline while hinting at plans to increase its diameter from eight to 12 inches.

The two governments are in the procurement phase for a larger oil pipeline with a 24-inch diameter, to reduce transportation costs and protect infrastructure, he said.

Prof. Kitila Mkumbo, the Planning and Investment state minister in the President’s Office, remarked that the company, once nearing collapse, has now been revived, even paying a substantial dividend to the government.

“We are accustomed to organisations requesting money from the government, but today we are witnessing the government receiving a dividend. This is something to be truly proud of,” he said.

Treasury Registrar Nehemiah Mchechu said that TAZAMA, with 58 years of operations, has shown promising progress indicated by resuming dividend payments.

This is in line with the observation of President Samia’s 4Rs strategy of reconciliation, resilience, reforms and rebuilding, pointing out that the pipeline is owned by Tazama Pipeline Ltd, a jointly operated firm with Zambia holding 66.7 percent shares and Tanzania a 33.3pc stake.

In November 2016 the two governments discussed how to modernise the aging pipeline, examining an option to build a new pipeline to run parallel to the original line. The new project will be usable for the transportation of crude oil, refined oil and natural gas, he said.

In May 2020, the pipeline management said that it was seeking a $400m loan to expand the 954km, 8-inch portion of the pipeline to 12-inch diameter of the remainder of the pipeline, the registrar indicated.