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Tanzania announces completion of $42 billion LNG talks

Published

1 year ago

May 31, 2023

Tanzania’s government has announced the completion of talks with the investors of its $42 billion liquefied natural gas (LNG) project.

The country, through its Energy Minister, January Makamba said the agreements would be reviewed for approval. It is believed that the deal, which is aimed at unlocking the country’s vast but remote offshore gas resources, would be presented to the government’s cabinet before being signed next month.

“The $42 billion project will change the image and the face of our economy,” Makamba said, adding that the government would enact a special law to monitor the project.

Makamba also said the government was planning to increase electricity production from the current 1,872 megawatts (MW) to 5,810 MW by 2025/26 to meet increased demand.

“This has considered the contributions and importance of the ongoing energy projects from different sources … with great consideration of the private sector,” he said.

According to the ministry’s budget publication, LNG investors and the government are expected to sign an amended production-sharing agreement in June.

Tanzania had two weeks ago announced the signing of a deal for the development of its liquefied natural gas (LNG) export terminal with international oil firms, Equinor, Shell and Exxon Mobil.

About 2,000 homes currently have access to natural gas infrastructure, and 62% of Tanzania’s 1100 MW installed capacity originates from onshore sources including Songo Songo and Mnazi Bay.

Related Topics:Featured Tanzania Tanzania LNG deal

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IMF mission concludes 4th loan program assessment in Egypt

Published

14 minutes ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.