Metro

Netherlands seize Air Tanzania plane over $165 million land title row

Published

2 years ago

December 2, 2022

An airplane belonging to Air Tanzania Company Limited (ATCL), was on Thursday, seized in the Netherlands following a $165 million awarded to a Swedish firm, against Tanzania due to a revoked land title in the Bagamoyo Sugar project.

The firm, EcoDevelopment, which is owned by 18 Swedish nationals, had reportedly invested $52 million into a “ready-to-go” project for local production of sugar, renewable electricity and fuel under a Sweden-Tanzania bilateral investment treaty.

But the revocation of the land title in 2017, according to local media, was a major blow to the Swedish company which had worked for over 10 years to develop the project, after the government decided to unilaterally revoke the land title for the project.

The Tanzanian government had argued that an attachment for a stay of execution brought by the firm was unlawful because it was obtained a day after the state petitioned the International Centre for Settlement of Investment Disputes (ICSID), a World Bank organ based in Washington, to annul EcoDevelopment’s award.

When the case came up for hearing at the ICSID, the judge held that the provisional stay of execution of the award only took effect on the date the institution registered the state’s annulment request.

However, Tanzania’s Attorney-General Eliezer Feleshi, has dispelled fears of the possible attachment of an ATCL plane by a Dutch court, saying that everything was under control.

Feleshi who confirmed the seizure of the plane, said the Swedish firm that won a $165 million award against Tanzania had persuaded the court to uphold the attachment of the aircraft despite the International Centre for Settlement of Investment Disputes (ICSID) having issued a stay of execution, pending annulment proceedings.

“It’s true that they went to court in the Netherlands after we had successfully appealed to the ICSID for a stay of execution. Everything is under control,” Feleshi said.

He added that the government had already appealed against the Dutch court’s decision but declined to offer further details.

“I can’t disclose further details. Let’s be patient as the matter is in court.”

Related Topics:Featured Netherlands Plane Sweden Tanzania

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Metro

World Bank pledges $3b to support Zambia’s development goals

Published

13 hours ago

November 14, 2024

Isaac Dachen

The World Bank Group has pledged to avail Zambia with approximately $3 billion to support the country’s development goals under the new Country Partnership Framework (CPF) for 2025-2029, with nearly half of the funds already disbursed.

World Bank Country Manager, Achim Fock, who made this known at the CPF launch at the Mulungushi Conference Centre in Lusaka on Wednesday, outlined the global lender’s focus areas, which included enhancing jobs, human capital, and climate resilience.

Fock highlighted that $200 million had been approved to strengthen Zambia’s social protection programs, including the Refugee and Host Community Project.

He also expressed optimism for upcoming approvals, including the Climate and Economic Resilience Financing and the Zambia-Tanzania Interconnector.

Zambia’s Finance and National Planning Minister, Situmbeko Musokotwane, who also spoke at the event, noted that 2.3 million Zambian households have so far benefited from social protection interventions such as the Cash for Work Programme, emphasizing the government’s commitment to safeguarding lives amid crises like the recent drought.

Musokotwane further reiterated the government’s commitment to protecting lives during times of crises such as the recent drought.

“More than two thirds of the Zambian population was affected by the drought. It was the government’s view that the first priority was to save lives,” Musokotwane stated.

Metro

Chinese mining giant CNMC set for $1.6 billion investment in Zambia

Published

1 day ago

November 13, 2024

Isaac Dachen

A Chinese mining giant, China Nonferrous Metal Mining Company (CNMC), has announced the investment of over $1.6 billion in Zambia, following successful discussions with President Hakainde Hichilema at the State House on Tuesday.

CNMC Chairman and Chief Executive Officer, Wen Gang, who held the discussions with Hichilema along with the Chinese Ambassador to Zambia, Han Jing, confirmed the company’s commitment to furthering Zambia’s economic development.

“We are actively investing in critical sectors of Zambia’s economy,” Gang said after the meeting.

He noted that CNMC was currently pumping water from Shaft 28 at Luanshya Copper Mine, where 29.9 million cubic liters have been cleared as part of intensified dewatering efforts, adding that the company plans to inject an additional $200 million to develop a greenfield mine on the Copperbelt.

President Hichilema who welcomed CNMC’s commitment, highlighted the potential economic impact of the firm’s investment which will include job opportunities for Zambians.

“This $1.6billion investment, alongside advanced technology and expansion, will extend operations and create more jobs and opportunities for Zambians, especially in mining contracting and supply,” the President said.

He also expressed gratitude to Chinese President Xi Jinping and the Chinese government for their shared commitment to fostering growth and cooperation between the two countries.