TANZANIA WAS PAID USD 316.21 MILLION DOLLARS FROM PAN AFRICAN ENERGY TANZANIA LIMITED AS ROYALTRY FOR 11 YEARS

Published on Thursday, 02 July 2015 00:56

Written by DAILY NEWS Reporters in Dodoma, TANZANIA.

Deputy Minister for Energy and Minerals, Charles Mwijage.

THE government has received 316.21 million US dollars (about 650bn/-) for the past 11 years from Pan African Energy Tanzania Limited as royalty, the National Assembly was told here yesterday.

Deputy Minister for Minerals and Energy, Mr Charles Mwijage, told the House that the percentage of gross revenues (VAT) inclusive derived from sale of Songo Songo gas, covers a period from July 2004 to March 2015. He said royalty is a payment made by investors to the government for the right to an ongoing use of natural resources.

The royalty is paid as a percentage of gross earning of the project. Mr Mwijage was responding to a question by Murtaza Mangungu (Kilwa North - Chadema), who wanted to know how much revenue has been paid to the government from Songo Songo gas project since 1996.

The legislator also wanted to know why Kilwa District was not receiving service levy from the Songo Songo gas project as the law requires in order to bring considerable benefit to the areas in which the company operates.

Responding, Mr Mwijage said the Pan African Energy Tanzania Limited which own Songo Songo gas project has complied with the government directive and made payment of 1.48bn/- to Kilwa District Council from 2012 to April  2015, being district service levy.

He said before 2012, the Pan African Energy paid the due Municipal Levy in full to Ilala Municipal Council where the company is registered in accordance with the Local Government Finances Act, 1982.

On 26th March 2012 the Minister for Energy and Minerals issued a directive to Pan African Energy under Reference number CBD.88/267/03/F/53 to cease making payments of Municipal Levy to Ilala Municipal Council and to instead pay the levy to the Kilwa District Council.