Compensation gets the ball rolling on Likong’o–Mchinga LNG construction project

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Compensation gets the ball rolling on Likong’o–Mchinga LNG construction project

Compensation of individuals staying on land where a major Liquefied Natural Gas (LNG) plant will be constructed is underway albeit with some challenges.

Construction of the plant, known as Likong’o–Mchinga LNG project,is expected to kick off in 2022 and be completed in 2028.

Tanzania Petroleum Development Corporation (TPDC) says that some 39 people who had been earmarked for compensation are yet to show up and prove ownership of the land to allow for smooth running of the exercise.

“We are still waiting for them to come to us and verify their details before we can compensate them,” said TPDC’s head of public relations and communications, Ms Marie Msellemu.

Ms Msellemu however cautioned that the money intended for the 39 beneficiaries, will be returned to the Treasury if the intended beneficiaries fail to show up and verify their details within the specified period of time (valid up to five years from the compensation date).

Last month (May 2020), TPDC issued compensation to some 617 verified project-affected persons (PAPs) whereby at least Sh5.2 billion was set aside for the purpose.

The Likong’o–Mchinga LNG project is Expected to cost USD30 billion, the project will be the first and the most expensive liquefied natural gas plant not only in Tanzania but in the region. It is located at Likong’o–Mchinga in the southern town of Lindi.

Once completed, the LNG plant, is expected to contribute about seven per cent towards the country’s economic growth.

A new construction report released in January, 2019 by consultancy firm PwC show that Eastern Africa countries have increased investment in infrastructure projects in the past five years with Tanzania leading in terms of the value and number of projects that broke ground by June last year, helped by the new Likong’o-Mchinga LNG plant.

The project will be developed by international oil companies (IOCs)  in partnership with the state-run Tanzania Petroleum Development Corporation.

The project will have capacity to produce 10 million tonnes per annum (MTPA) of liquefied natural gas.

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