UNDP supports Government to improve contract negotiations and draftingNov 9, 2012
In an effort to help the government improve its capacity to manage her resources, UNDP Tanzania has supported the government to build the capacity of her officers to understand the best practices used internationally for negotiating and drafting mining contracts to ensure that both the government and investors benefit equally.
The workshop which is part of UNDP ongoing efforts to build requisite capacities and competencies which are imperative for sustainable human development, was organized by the Attorneys General Chambers in collaboration with Ministry of Energy and Minerals and the International Senior Lawyers Project (ISLP) under the support of UNDP.
The informative workshop, titled ''Best practices for negotiating and drafting mining contracts'' took place at Tanga Beach resort Hotel from 5th-9th November and attended by participants from Attorney General Chambers(AGC)contract department, Ministry of Finance, Tanzania Revenue Authority(TRA), Vice presidents office, AGC office in Zanzibar, STAMICO, TMAA, Ministry of energy and minerals. The experts presenting at this workshop were from International Senior Lawyers Project (ISLP .
This was a timely workshop as the government is working on how to better maximize the benefits of her natural resources in extractive industry in order to promote economic growth and reduce poverty.
“Tanzania is currently in the critical stage in terms of developing the extractive industry particularly in mining and gas which the recent discovery makes the country one of major producers in this Region. All these developments demand that the country is well prepared to enter into investment contracts that will ensure a win -win scenario to country and investors.” said Mr Titus Osundina, UNDP Deputy country Director during a closing ceremony.
However to make sure that this is happening, UNDP is currently in the process of formulating a project that will comprehensively cover all capacity building on investment contracts where a capacity needs assessment will be carried out in order to identify the critical needs and thus came up with a realistic way of addressing them.
In Tanzania Mining contributes about 2.3 percent of the GDP which is projected to account 10% in 2025 as stated in the development vision 2025.The sector plays an outstanding role in attracting Foreign Direct Investment in Tanzania especially from the late1990's.There has been an precedent increase in terms of prospecting licenses, mining license and the volume of FDI. Production from the sector has in deed turned around Tanzania Global and regional position in mining sectors players.