Zanzibar and the Union Government have agreed to share oil and gas revenues as stipulated in the Constitution.
Zanzibar and the Union Government have agreed to share oil and gas revenues as stipulated in the Constitution.
Below is an article written by Orton Kiishweko and published by Allafrica.com:
Zanzibar and the Union Government have agreed to share oil and gas revenues as stipulated in the Constitution. A top-level committee dealing with Union problems reached the decision. The minister of state in the Vice-President's Office (Union Affairs), Mr Muhammad Seif Khatib, told reporters in Dar es Salaam yesterday [17 May 2008] that 10 issues had been discussed and agreed upon by the committee on Thursday [14 May 2008].
He said the two governments had agreed to share the two natural resources as stipulated in the Union Government's Constitution. "The two sides have already got an external advisor who will list relevant factors and provide a formula for sharing petrol and gas revenues," he said.
This accord ends two years of controversy after Zanzibar Chief Minister Shamsi Vuai Nahodha told the House of Representatives that the Mainland would be barred from exploring oil in the Isles. He said that any study or exploitation of petroleum would not be allowed in Zanzibar's waters as there were issues that needed to be solved for the mutual benefit of the partners in the Union.
Solving those issues would be a condition for entities registered on the Mainland to be permitted to explore for oil in Zanzibar's waters, the Isles top official said. Yesterday, Mr Khatib said Zanzibar had agreed to place its natural resources under the auspices of the Union Government upon realisation that making it a unilateral issue could lead to loss of benefits.
Oil exploration and exploitation have often led to social and political instability in many African countries. New conflicts have arisen following discovery of such resources in border territories such as the DR Congo-Uganda dispute on the Lake Albert oil finds.
Though about 12 blocks believed to hold substantial reserves of gas and oil reserves have been explored in the past, Zanzibar has diverse energy resources, including biomass, natural gas, hydropower, coal, geothermal, solar and wind power that remain untapped. Extensive gas fields have already been identified, off the coast at Songo Songo and Mnazi Bay, with current natural gas reserves estimated at two trillion cubic feet.
The Songo Songo gas-to-electricity project, that has already been tapped, has a ready market of 17 potential industrial users of natural gas in Dar es Salaam alone.
As the Union committee started its meeting on Thursday, Vice-President Ali Mohammed Shein cautioned the participants to respect and uphold both the Zanzibar and Union Government constitutions throughout their discussions.
On oil, an expert advisor will conduct research and propose how the two governments can share the natural resource, and present his report to the committee in August. Other Union disputes were discussed in the meetings, with various arms of the two governments directed to handle speedily those that still need to be addressed.
They include complaints from Zanzibar car importers over double taxation by the Tanzania Revenue Authority (TRA) and employment of Zanzibaris in the Union Government and its agencies. "Double taxation sometimes occurs because of some opportunistic and unscrupulous individuals at TRA," Mr Khatib said.
The meeting also noted that the call for the Isles Government to take part in international meetings and the possibility of borrowing from international bodies was progressing well but the framework had yet to be finalised. Issues decided upon and, which are being implemented, include allowing the Human Rights Commission to operate in Zanzibar.
By April 30 [2008], about 324 human rights cases in Zanzibar had been received and were being heard, the minister said. Zanzibar has also asked to be included in regional development projects such as setting up a bigger port, as well as the construction and enlarging of Zanzibar town roads and the Zanzibar International Airport.
It is also seeking the setting up of a wind power plant for electricity production, improving transportation of agricultural produce in Zanzibar, along with conducting research for coffee and clove production and marketing. The committee further adopted a call to hold its meetings every two months to speed up resolution of pending issues.
Thursday's meeting was the third sitting of the committee since President Jakaya Kikwete formed it. It was the first since the February 12 [2008] Cabinet reshuffle, which saw the exit of Mr Edward Lowassa as Prime Minister.
The committee will convene again in July [2008], Mr Khatib said.
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