Decision to declare TIPER receiving terminal for BPS stuck in govt

28Sep 2018
The Guardian Reporter
The Guardian
Decision to declare TIPER receiving terminal for BPS stuck in govt

DECISION to declare Tanzania International Petroleum Reserve (TIPER) tank-farm at Kigamboni as Bulk Procurement System’s single receiving terminal (SRT) as proposed by Controller and Auditor General last year is stuck in the government’s bureaucratic gridlock.

TIPER tank-farm at Kigamboni in Dar es Salaam.

Petroleum Bulk Procurement Agency (PBPA) Executive Director, Erasto Simon said in Dar es Salaam this week that public institutions with a stake in BPS received recommendations from oil marketing companies (OMCs) regarding the SRT proposals which they are currently deliberating on.

“OMCs made their recommendations which public institutions involved in BPS procurement are discussing before coming up with decisions,” Simon said while revealing that there is no time frame to give the final verdict.

“We are analysing their suggestions and weigh them if they can be implemented while safeguarding national interests which are simply interests of consumers,” the PBPA chief executive noted.

Some of the public institutions involved in BPS tender regulation and handling include: Energy and Water Utilities Regulatory Authority, Tanzania Ports Authority and Ministry of Energy.

Amongst their concerns which they want addressed before the SRT at TIPER can be accomplished, OMCs don’t want to shoulder any costs of collecting their BPS shares and that instead TPA should find funding to accommodate the cost.

Commenting in progress which has so far been made to implement the SRT as recommended by Controller and Auditor General, Professor Mussa Assad in his 2017 report, Ewura Corporate Communications and Public Relations Manager, Titus Kaguo said the final decision will be made by Minister for Energy, Dr Medard Kalemani.

“There is progress being made towards drafting regulations at the Ministry of Energy before the SRT decision can be implemented,” Kaguo stated recently while referring Property Watch to Ministry of Energy for details.

In his 2017 report of Dar es Salaam Port’s petroleum discharging audit, Prof Assad said Treasury is losing billions of shillings in revenue because of inefficiency in BPS offloading at the port.

“I noted several inefficiencies in the performance of Tanzania Ports Authority operations where in most cases the Authority has been experiencing performance below the agreed key performance indicators. Among these indicators is the dwell time, where, most of the ports had an average dwell time ranged between 6.1 and 8.6 days which is below the agreed dwell time of 5 days,” the CAG said.

He added that vessels take an average of four days at one particular berth instead of the agreed three days which has negative effects on the competitiveness and future service delivery of the Authority.

“TPA faces a problem of low discharge rate of oil at Kurasini Oil Jetty (KOJ) and Single Point Mooring (SPM) mainly due to distance from SPM or KOJ to the tank farm (receiving point), pump pressure and diameter of the oil pipe,” Prof Assad’s 2017 audit report noted.

TPA Director General, Deusdedit Kakoko recently told Property Watch that the ports landlord is considering to build an own tank-farm to handle all BPS products in the near future as a way of safeguarding government’s revenue.

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