PARTICIPATORY GOVERNANCE ON NATURAL GAS …esrf.or.tz/docs/Natural GasEconomyMtwara_Lindi.pdf · Participatory Governance on Natural Gas Economy - Mtwara and Lindi Regions | 5 Mtwara

PARTICIPATORY GOVERNANCEON NATURAL GAS ECONOMY

Round Table Discussion on addressing Governance Gapsin Planning and Managementof Natural Gas Economy

between Regional and Local Government Authority Officialsin Mtwara and Lindi regions - Tanzania

July, 2017

Published by: Supported by:

Participatory Governance on Natural Gas Economy - Mtwara and Lindi Regions | 1

PARTICIPATORY GOVERNANCEON NATURAL GAS ECONOMY

Round Table Discussion on addressing Governance Gapsin Planning and Managementof Natural Gas Economy

between Regional and Local Government Authority Officialsin Mtwara and Lindi regions - Tanzania

Prepared by:Prof. Samuel Wangwe

Prof. Razack LokinaProf. Fortunata Songora Makene

Mr. Patrick Tuni Kihenzile

@ 2017 Economic and Social Research Foundation

Published by: Supported by:

2 | Participatory Governance on Natural Gas Economy - Mtwara and Lindi Regions

1. INTRODUCTION ........................................................................................................................4

1.1 Mtwara region ............................................................................................................................................. 4

1.2 Key Issues .................................................................................................................................................... 5

1.2.1 Inter-government cooperation and citizen involvement .............................................. 5

1.2.2 Management of revenues and expenditures ................................................................... 6

1.2.3 Sustained development efforts ............................................................................................. 6

1.2.4 Land use conflicts ....................................................................................................................... 7

1.2.5 Social and environmental impacts ....................................................................................... 8

1.2.6 Seizing the opportunity for entrepreneurship development ...................................... 8

2. LINDI REGION ........................................................................................................................ 10

2.1 Inter-government cooperation and citizen involvement ...........................................................10

2.1.1 Citizens involvement ...............................................................................................................10

2.1.2 Information sharing ..................................................................................................................11

2.2 Management of revenues and expenditures ................................................................................11

2.3 Sustained development efforts ..........................................................................................................12

2.4 Land use conflicts ...................................................................................................................................13

2.5 Social and environmental impacts ....................................................................................................13

2.6 Seizing the opportunity for entrepreneurship development ...................................................14

3. RECOMMENDATIONS ........................................................................................................... 15

3.1 Inter-government cooperation and citizen involvement ...........................................................15

3.2 Management of revenues and expenditures ................................................................................15

3.3 Sustained development efforts ..........................................................................................................16

3.4 Land use conflicts ...................................................................................................................................16

3.5 Social and environmental impacts ....................................................................................................16

3.6 Seizing the opportunity for entrepreneurship development ...................................................16

TABLE OF CONTENTS


4. ANNEXES ................................................................................................................................. 18

4.1 List of Participants ...................................................................................................................................18

4.1.1 List of regional secretariat, LGAs officials and other participants in Mtwara .......18

4.1.2 List of regional secretariat, LGAs officials and other participants in Lindi .............20

4.2 Round table discussion pictures in Mtwara and Lindi region .................................................22

LIST OF FIGURES

Fig. 1.1 Mtwara Region Map .................................................................................................................................. 4

Fig. 2.1 Lindi Region Map .....................................................................................................................................10


The roundtable discussions were organized in Mtwara on 16th May 2017 and in Lindi on 19th May 2017 after the baseline study which was carried out in 2014 to examine the socio-economic inclusiveness and sustainability of the natural gas sub-sector and foster an understanding of related outcomes and impacts in connection with stakeholders’ expectations. Being a recent entrant in the natural gas industry, and coupled with a continued discovery of a vast natural gas potential and an increasing international and domestic demand for the same, Tanzania must really become increasingly aware of and prepared for various

changes that are typical of this development endeavour so as to strategically position herself to reap the maximum benefits.

This report is organized in terms of the six gaps in the two regions. The report addresses the discussions in Mtwara (section 1) followed by report on discussions in Lindi (Section 2). Section 3 synthesizes recommendations, which are deemed applicable to both regions. The report is both descriptive and analytical in its orientation.

1.1 Mtwara region

1. INTRODUCTION

Fig. 1.1 Mtwara Region Map


Mtwara region is one among the regions which are located in the southern part of Tanzania. The regional capital is the municipality of Mtwara and according to the 2012 national census, the region had a population of 1,270,854. The region is bordered with Mozambique and Ruvuma River to the south, to the west Mtwara is bordered by Ruvuma region, to the north is bordered by Lindi region and to the east is largely bordered by Indian Ocean.

1.2 Key Issues

Key issues found or discussed during the round table discussion included the following:

1.2.1 Inter-Government Cooperation and Citizen Involvement

Local government officials acknowledge that the gaps that were mentioned in 2014 were a result of inadequate knowledge regarding gas industry and the tension that persisted mainly after the riots. Over time the regional government has involved the local governments in reviewing their plans, advising and harmonizing them to be in line with national plans and this process involved officials from local governments. It was pointed out at the meeting that though this gap has not been closed completely, it has been narrowed down considerably.

There has been a reasonably close cooperation between the regional government and local government. Leaders from the local government have been involved in all major planning activities at the regional level accompanied by subsequent dissemination to the citizens in their respective districts. What is observed from the discussion is that there is a need to have continuous feedback information among officials at different levels and also between officials at those levels and the citizens. There are incidences where some officials do not report back what transpired in the meetings to their subordinates, thus creating somewhat an information gap, which sometimes can be

interpreted as lack of cooperation. This to a large extent can be a source of conflicts and civil unrest in some of the villages. This experience demonstrates that closing the knowledge gap is a process and if deliberately organized at all levels (regional, district and lower levels) the gap can be narrowed down and even closed.

Furthermore, it was pointed out by the regional and local government officials that, unlike other sectors, the energy sector is not staffed with the appropriate experts at the regional and district levels. Energy specialists (in this case oil and gas specialists) are not allocated at the local or regional government level. This creates a huge gap in disseminating and appropriately translating to the local context the information which is discussed at the ministerial level.

The current organization structure of the Ministry of Energy and Minerals does not provide for the position of a director or commissioner responsible for energy neither at the regional nor local authorities levels. The oil and gas issues have been better staffed at the central government level than at the regional or local government authority level. Sometimes the central government has been directing regional and district officials to perform specific activities related to the gas industry but effective performance has been impaired by the absence of requisite expertise and inadequate or lack of budgets for such activities. Staffing at the regional and local government level with energy experts and budget provision at these levels would be more appropriate in addressing the knowledge gap.

It was pointed out that the level of expectations from the gas economy is still too high among the citizen. Many still think in terms of what the gas economy is going to do for them and how they are going to benefit from the gas economy rather than how they are going to position themselves to take advantage of and contribute to the coming of the gas economy. This line of thinking on the basis of high expectations makes the communities located far from the


gas producing areas ask themselves how they will benefit being so far away from the centre of action (exploration or exploitation). They need to understand that benefits from the gas economy can be influenced by how they position themselves and what preparations they actually make to take advantage of the gas economy.

1.2.2 Management of Revenues And Expenditures

(a) Royalties vs Service Levies:

Issues regarding royalties and service levies dominated the discussion on this gap. Many participants could not differentiate well between various kinds of non-tax revenue sources. Some officials treated royalties and service levies synonymously. The legal challenge regarding where the gas companies should pay the service levies was clarified by the officials from the central government that service levies are paid where the activities are conducted and in that case Mtwara district council is where levies have to be paid.

The officials from Mtwara district council admitted that service levies have already started being paid to the council. It was clarified that royalties are charged and retained by the central government. So other local governments, where no gas activities are taking place can also benefit from the royalty (as part of the national budget) since they are not expected to demand a share of the service levies. On the concern that the amount paid is too small (Tsh. 4m per quarter - equivalent to 2000USD), it was explained that the charge is based on the actual output realized. And what is paid is 0.3% of the value of the resources extracted.

(b) Lack of awareness and Knowledge on the differences between LPG and CNG:

It was observed that the level of understanding and knowledge regarding the use of natural

gas especially for domestic purposes was inadequate. There have been a number of complaints from residents especially from Mtwara that they are buying gas for cooking at a very high price. They expected to pay for cooking gas a lower price than what is charged in Dar es Salaam since the gas is coming from their doorstep. This is clear evidence of the lack of awareness that LPG currently in the market is very different from the planned CNG. The people of Mtwara had been misinformed that the natural gas from the region was the same gas that was packed as Liquefied Petroleum Gas (LPG).

It is this misinformation that had led them to demand that the gas should have been made available to them at a lower price compared to other regions. What is obvious is that while officials are aware of the difference between LPG and CNG, the citizens are not informed about these differences. This is a signal that the local government officials could do more to disseminate correct and adequate information regarding natural gas issues. Currently, there is no CNG plant in the country. In future, when CNG plant is set up it is expected that gas for household use will be distributed through pipes and households will be connected to those pipes. Local governments are advised to provide space for the gas pipes in their land management plans and provide for this eventuality in the master plans.

1.2.3 Sustained Development Efforts

The regional and local governments are undertaking numerous initiatives to ensure sustainability of the benefits derived from the gas resource after its exhaustion. Some of these initiatives mentioned by the regional government in 2014 include maintaining and promoting cashew nuts farming and other crops and investing in moving up the value chain such as investing in agro-processing activities. Another initiative is to establish what is to be known as Mtwara Development Corporation (MDC) and Mtwara Development Fund


(MDF). This is considered to be an important source to finance for investment in the region. One source of funding these initiatives would be share of what is received from the oil and gas companies.

Going back to the claim posed in 2014 that information on MDF and MDC was not communicated effectively to the local government levels, clarification was made. It was clarified that the initial idea was conceived at the regional level and later on it was discussed at the RCC meeting drawing members from all the districts. So it is possible that some of the members who had participated in the meeting did not disseminate the information to their constituents. So it was principally a communication gap that had prevailed. Until year 2017, the MDC and MDF were still not in place due to legal challenges, as the regional government roles do not allow investing for the districts. Currently arrangements are in progress to make the MDC and MDF under the responsibility of the local government’s authorities that have the mandate to operate as legal entities with the regional government remaining as an advisory body.

The regional and local government’s officials proposed that finding ways to sustain development should be a continuous process such as through education. Mikindani, for example, has started training science teachers as one strategy to sustain development. In preparing strategic plans, officials wanted help from TPDC or related national bodies in natural gas so as to ensure that the plans at local government level are in line with national plans. It was emphasized that each local government should chart their plans in consideration of the role they are supposed to play in the gas economy and identify ways of building sustainability at the local level economy.

1.2.4 Land Use Conflicts

As it was reported in 2014, there are complaints in the region caused by a scramble

for resources leading to conflicts over village boundaries. In some areas like Nangurume there were scrambles over the boundaries caused by the establishment of gas drilling hole in that area as every village wanted to benefit from that activity. The local governments have been visiting the areas with such disputes and put clear boundaries.

There was a general agreement at the meeting that it is true that there are land use conflicts but they are not to the scale experienced in other part of the country like Kilosa and elsewhere. It is basically a discomfort on the part of the villagers regarding the compensation for their land. This basically arises from the observations that different levels of payment occurred whereby the villagers received different levels of compensation from the investors for same size plots of land.

It was clarified that the differences are attributed to differences of value as determined by the locations of plots. On that consideration, it is possible that within the same villages plots located in prime areas are valued higher that plots in more remote areas. However, this is not well communicated to the villagers, thus being a source of complaints. Similarly, land valuers use different valuation criteria than what is provided by the government. This is especially, the case when the investors use private valuers who in most cases use the average selling price of a plot of land in the village.

But this has a problem since; in some cases what is reported in the official documents in the village offices is actually under reported as a way of paying less the mandatory fees to the village authorities, which in some places is set at 10% of the selling price. In response to such high rates sellers and buyers of land collude to underreport the value of land in order to minimize fees to be paid to the village government. It was also reported that some villagers are paid in cash and later they deny that they had been paid. In order to


address this problem four courses of action are recommended.

i. First, gas companies and other investors should be required to use resident valuers.

ii. Second, village governments should be advised to set affordable tax rates to encourage compliance.

iii. Third, the payments of compensation should continue to be paid by cheque not cash to avoid claims of not having been paid.

iv. Fourth, there should be deliberate awareness creation on these issues and improve communication with the villagers with a view to filling the gap.

1.2.5 Social and Environmental Impacts

(a) Effects on Marine Ecosystems:

The regional and local governments admit to have received complaints or hearsay from the public regarding environmental effects especially on the marine ecosystem caused by explosion activities during the exploration of natural gas. Fishermen have noticed disappearances of some of the fish species, which they associate with the blasts during the explorations, and some fishermen claim the water within 60 meters to the exploration area is electrified. The major gap is that there is no research that has been done to produce scientific evidence and more specifically there is no independent verification so far conducted.

The regional as well as the districts authorities would prefer to have evidence based on research findings. This is especially so since the disappearance of some fish species can be attributed to many factors, including illegal fishing activities, overfishing, and climatic factors. It is therefore important to have a proper research conducted to confirm the

sources of the alleged environmental effects.. Research could also give experience from other countries where exploration has been taking place for many years.

(b) Accessibility to the EIA reports:

There was also complaints of not having access to the EIA reports, which are usually conducted prior to the projects implementation. It was observed in the meeting that, while this was a problem in 2014 it does not seem to be a serious issue currently since NEMC has now opened southern regional office with its headquarter in Mtwara. With such a move all the EIA reports regarding investments in oil and gas can be accessed whenever the need arises. (c) Community Effects:

It was observed that there are social impacts relating to the increasing incidences of single mothers, diseases and strangers and unacceptable behaviour of children and youth etc. On the positive side there are new skills among the youths, technological transfer especially those who managed to secure employment in those companies. This is an indication that action needs to be taken to mitigate the negative impacts and to put in place incentives and other actions to promote the positive effects.

1.2.6 Seizing the opportunity for entrepreneurship development

The local and regional levels of government mentioned the issue of meeting standards and supply requirements as a main constraint for Mtwara entrepreneurs to secure tenders. It was clarified that the issue of quality and standards was not avoidable. The challenge is to build the capacity to meet the quality and standards requirements. With respect to agriculture, many groups were initiated and supported but many collapsed due to various reasons and now the debate is on whether there is need to change


strategy and support dedicated individuals rather than continuing to support groups. It was also noted that, Mtwara entrepreneurs are good in initiating businesses but are not good in going a step further to make their businesses grow.

Unlike previous years, there has been an improvement in education regarding entrepreneurship. Now people are eager to attend trainings on entrepreneurship. The number of groups registering businesses, seeking microcredit and education on how to write their constitutions has increased. The local

and regional levels of government mentioned the issue regarding lack of capacity and skills among the residents of Mtwara region. Efforts have been initiated to build capacity and also explore further sources of financing.

The main issue here is to provide more education on how these dedicated groups may benefit from the gas economy. The opportunities are not clearly seen and people had too high expectations of the benefits from the gas economy and less awareness on what actions they should take to harness opportunities from the gas economy.


Fig. 2.1 Lindi Region Map

Lindi Region is one of Tanzania’s 31 administrative regions. The regional capital is the municipality of Lindi. According to the 2012 national census, the region had a population of 864,652. The Lindi Region borders on Pwani Region, Morogoro Region, Ruvuma Region, and Mtwara Region. Much of the western part of the Lindi Region is in the Selous Game Reserve and eastern part is largely bordered by the Indian Ocean.

2. LINDI REGION

Key issues found and discussed in Lindi region included the following:

2.1 Inter-Government Cooperation and Citizen Involvement

2.1.1 Citizens Involvement

The regional government acknowledges the existence of gap in citizen involvement. It was noted that districts have a lower level of understanding compared to that at regional level. There is also a variation between districts. It was also observed by some district

officials that the regional level authority has more information on the gas economy and its implications and more of this knowledge could be shared with the district authorities, which would in turn share with lower levels. There was a general agreement that this gap has been seen as a problem in the region, but in reality different levels of government are likely to continue to display different levels of awareness. It was observed that different levels of government are likely to continue to possess different levels of knowledge and understanding reflecting their different positions and responsibilities.


It was also pointed out that districts, which are located near exploration sites, are more knowledgeable than districts, which are located far from exploration sites. It was observed that those districts close to the sites are the ones that should be aware of the day-to-day operations of the investment activities within their locality. Ordinarily there would be issues of general nature, which can be shared across all the districts, but also there are some more specific issues, which will be of concern to only those authorities where the exploration and production is taking place.

2.1.2 Information Sharing:

Another issue, which raised concern, is that inaccurate information was sometimes delivered to the citizens especially by some NGOs. In particular, some of the NGOs both from the region and outside have been meeting the communities without first having accurate information and without making consultation with the district or regional authorities. This has contributed to misinformation and delivering of unrealistic and at times contradictory information to the people. This suggests that the local governments should make sure that the work of all actors in development including NGOs is well coordinated and synergy among them is maximized.

To address this gap, several actions have been taken to improve communication and information sharing in the region. Education and communication with local levels is being provided through RCC (where district officials are members) and other means. Involvement of regional and local government at national level has increased recently. There have been efforts at regional and district levels to ensure that there is adequate information sharing between them but also to the citizens of the region. Citizen involvement also has increased compared to 2014.

Taking Liwale as an example, it was stated that village committees are involved and even

in schools there are clubs for oil and natural gas. Clubs that have been formed in primary schools are promising as a way to improve communication and create awareness among the youths. This has been facilitated by providing training to a number of teachers as a way of preparing them to lead these clubs. Experiences from such initiatives should be replicated to other districts with the necessary adaptations.

2.2 Management of Revenues and Expenditures

The districts are receiving Service levies. Two issues emerged in connection with revenues from the gas economy. First, villages where the gas pipe passes through have continued receiving 20% of the levies as well as payment for safeguarding the pipe. The rest of the community sees the residents that are involved directly in safeguarding the natural gas pipe as being unfairly privileged by enjoying direct benefits from gas industry more than the rest of residents.

Second is the issue of proper management of the finances. This issue signifies lack of sufficient planning and accounting procedures as well as transparency in planning and expenditures. It is a requirement that citizens should be informed regularly about the revenue and expenditure of the money generated or received at the village, however, some village leaders are not holding regular meetings. Thus being a source of conflicts among leaders and between leaders and the communities. Reporting on revenue and expenditure is a problem in some villages and wards. It was reported that in some areas the revenue was misused and that leaders are mishandling the gas revenue.

The local governments have been trying to address the problem by conducting the training to some of the leaders. It was also suggested that there is need for urging the gas companies paying to these villages to issue a kind of guidelines on how the money can be


spent. However, since there are established guidelines by PORALG these should be interpreted and used at local levels. The lack of proper use of guidelines on how the money received should be spent has led to queries and misunderstanding among the leaders and between the leaders and the communities.

Some of the village leaders have not been holding regular meeting in their respective villages. These have demoralized many of the citizens in attending these meeting even when they are organized partly because of erosion of trust in the leadership at community level. It was also pointed out that many have been disappointed because they had high expectations initially. Currently some communities do not see gas revenue changing their social life as had expected.

The question arose as to who should plan for the use of revenue. Principally the revenue is required to fund village development projects and has to be spent in accordance with planned activities that are put together by the village planning and finance committees. The law instructs that records of all development funds, regardless of their sources, are posted on the notice boards of the district and village governments for public access. The question that remains here is how to make villages and wards’ officials more transparent in planning and using the revenue. The regional government resolved to step up efforts to monitor the enforcement of laws and regulations relating to the use of finances and education to the communities.

2.3 Sustained Development Efforts

The regional government is focusing on other productive sectors like agriculture (cashew nuts) to avoid effects of the Dutch disease. In the past there were Funds namely Education Fund and Lindi Development Fund, but all collapsed due to various reasons. Now the two levels of the government are cautious on initiating again the

Funds to ensure their sustainability. Initiatives are in place to revive Education Development Fund, and Lindi Development Fund. This should be done with great caution to avoid the recurrence of problems, which led to the collapse of the earlier Education Development Fund. Emphasis was given on accountability by putting restrictive rules or guidelines on how to use the revenue obtained from the gas economy.

There are some initiatives some local governments have taken to ensure sustainability of the benefits derived from the gas development activities over the long term. The local governments now have understood the resource will last for a limited number of years, which suggests that they cannot abandon their traditional economic activities. Thus, the authorities have resolved to continue with developing traditional economic activities while at the same time focusing on activities directly triggered by the gas industry. In this regard, there have been efforts at regional and district levels of the government to promote other sectors of the economy (e.g. agriculture, fishing, forest (i.e. Timber) and also to attract new investments in the region.

In this context, it was reported that in Kilwa district, the authority has been using revenues from Songas to invest in social projects like schools, hospitals, roads etc. Kilwa has requested gas companies to help on industries for drying fish. Also Kilwa is improving infrastructure, and providing scholarships. In other districts there are policies to attract industrialization like offering land to investors. Also there are registered groups involved in productive activities; and some focus on sports and entertainment industry.

To promote investments in new activities, the region is planning to organize an investment forum, which will be an avenue of attracting new investments in the region. Plans are also underway to develop a regional gas revenue policy, which will provide guidelines on how


the gas revenue would be utilized in the region.

2.4 Land Use Conflicts

Land use conflicts at the local government level are due to scramble for resources and lack of transparency on the part of some leaders at village level. This has been a serious and a growing problem in the region, which to some extent is unrelated to the gas industry. It is a conflict between farmers and livestock keepers who are mainly the new comers in the region. To a larger extent it is contributed by leaders who accept bribes from the wealthy livestock keepers and give them access to graze their animals without involving other members of the village. The Regional authority has been taking initiatives to address the problem.

The issue of unfair compensation emerged among the villages. However, this is a reflection of inadequate knowledge of the laws governing village land. It is caused by lack of education regarding the basis of valuation and compensation. Usually compensation can differ from one individual to another depending on the location of the land to be compensated contrary to what some villagers understand that land of the same size should have the same value. Other villagers also have been demanding to be compensated to the scale of the project; such that larger investment projects are expected to pay more than small projects pay. Also the communities tend to speculate higher price once they know the projects are going to take place in their area and they are likely to cheat so as to get higher compensation compared to real market price. So the major issue is to educate the communities regarding the valuation procedures. Earlier there were reports of conflict regarding compensation by TPDC to the community. This problem has already been solved.

Regarding the Village Land Act number 5 of 1999 that gives power to the villages, it was clarified that the local governments are continuously providing education to the

villages especially on the acres of land the village can reallocate. The problem is that some village officials provide land beyond the limit by registering even names of the relatives (children) of the buyer. There are two kinds of problems here;

First, there is the problem of education and awareness to the villages regarding the limit beyond which the village cannot give land to the investors without seeking the approval of the higher authorities. This problem should be addressed by providing education on the Village Land Act.

The second problem is related to corruption. Knowingly, the village leadership allocates land beyond the limit according to the Village Act. This problem should be addressed through enhancing procedures for land allocation to make sure villagers are aware of all decisions regarding land allocation.

2.5 Social and Environmental Impacts

Local government officials raised concern that they lack expertise in identifying whether or not the exploration of natural gas has caused social and environmental impacts in the communities within the districts. Local governments do not have qualified environmental officers. Currently a natural resources officer holds the position of environmental officer. This shortcoming was observed in most of the districts. However, it should be well known that as per the requirement of the National Environmental Act 2004, all districts are required by law to have a trained environmental scientist.

A whale was found dead in Kilwa in year 2016 and the government is still investigating what caused the incident - is it natural death or environmental related death? There have been complaints from villagers in Songosongo regarding the dumping of toxic wastes by the gas companies. More efforts are needed to verify these claims and take action.


The roles of TPDC as the owner of the gas wells in Songosongo, as well as the government agency that is fully responsible for ensuring that gas activities are conducted in a manner that safeguards the environment was contradictory. But now the problem has been solved since the National Environment Management Council (NEMC) now handles all the environmental related matters. It was observed that NEMC, which is a national organ responsible for the monitoring of the compliance of the gas companies, has not been making regular visits to assess the behaviour of the investors.

It has been observed that a zonal environmental office has been opened in Mtwara to cater for needs of the zone. However, it is not clear what the role of this zonal office is expected to be in relation to the role of environmental officers at the district levels. There is a need to be more explicit about the division of responsibilities between the zonal office and the district office as regards handling environmental matters.

2.6 Seizing the Opportunity for Entrepreneurship Development

Two issues that were raised in this context refer to capacity building and access to markets.

• First, the local and regional levels of government acknowledge that

the residents of the region lack the necessary capacity and skills. Efforts have been initiated to build capacity and to facilitate financing of the training of youths. Many of them have been enrolled in vocation education under the sponsorship of the gas companies. This is seen as one way of building capacity within the region so that later on they can capture the opportunities arising from the gas economy. In order to upscale capacity building the local government should take action to step up capacity building costs in their budgets and to complement their budgets with resource mobilization from other sources.

• Second, local governments’ efforts are directed towards providing awareness creation and helping entrepreneurs to secure reliable markets for their products. Furthermore, the regional and local authorities have been looking into the possibilities of accessing markets of the produce beyond Lindi region to ensure sustainability of the investments. The region could establish a marketing desk, which could have the task of networking with other market development institutions in the country and beyond to improve access to appropriate markets.


3.1 Inter-Government Cooperation and Citizen Involvement

• This experience demonstrates that closing the knowledge gap is a process and if deliberately organized at all levels (regional, district and lower levels) the gap can be narrowed down and even closed by ensuring continuous feedback information among officials at different levels and also between officials at those levels and the citizens.

• The energy sector should be staffed with the appropriate experts at the regional and district levels in order to facilitate disseminating the technical information from the ministerial level and translating it appropriately to the local context. Staffing at the regional and local government level with energy experts and budget provision at these levels would be more appropriate in addressing the knowledge gap.

• Managing expectations deserves high priority. The citizens need to be helped to appreciate that benefits from the gas economy can be influenced by how they position themselves and what preparations they actually make to take advantage of the gas economy.

• The local governments should make sure that the work of all actors in development including NGOs is well coordinated to provide consistent and correct information

to ensure that synergy among them is maximized.

3.2 Management of Revenues and Expenditures

The local government should provide education and knowledge on the meaning and application of various kinds of non-tax revenue sources especially royalties and service levies and knowledge regarding the use of natural gas especially for domestic purposes and the natural gas that is transported to Dar es Salaam.

Preparations for receiving gas household use (when it is available) should be made in particular in terms of providing space for the gas pipes in their land management plans and provide for this eventuality in the master plans.

Citizens should be informed regularly about the revenue and expenditure of the finances generated or received at the village irrespective the sources of funds. This means that funds from all sources should be integrated into the budgets at local government or village level and be managed in a transparent manner through regular meetings and/or use of notice boards in the respective levels of government.

The revenue required to fund development projects should be spent in accordance with planned activities. The regional government should ensure that monitoring of the enforcement of laws and regulations relating

3. RECOMMENDATIONS


to the use of finances and education to the communities are actually implemented.

3.3 Sustained Development Efforts

The regional and local governments should undertake appropriate initiatives to ensure sustainability of the benefits derived from the gas resource after its exhaustion. The process of finding ways to sustain development should be a continuous process such as through education. In particular, each local government should chart their plans in consideration of the role they are supposed to play in the gas economy and identify ways of building capacity for sustainability at the local level economy.

Initiatives should be taken to establish appropriate development funds guarded by restrictive rules or guidelines on how to use the revenue obtained from the gas economy.

Efforts should be made at regional and district levels of the government to promote other sectors of the economy (e.g. agriculture, fishing, forest (i.e. Timber) and also to attract new investments in the regions with a view to promoting investments in new activities that can lead to a sustainable economy.

3.4 Land Use Conflicts

• Gas companies and other investors should be required to use resident valuers to avoid unnecessary confusion over different ways of valuing land.

• Village governments should be advised to set affordable tax rates to encourage tax compliance.

• Land use conflicts at the local government level are due to scramble for resources and lack of transparency should be resolved by raising the level of awareness and transparency in land management

and knowledge of the laws governing the land.

3.5 Social and Environmental

Impacts

• The regional and local governments should be assisted through research and independent environmental assessments periodically. Research could also share experience from other countries where exploration has been taking place for many years.

• Action should be taken to identify social impacts of the gas economy with a view to mitigating the negative impacts and to putting in place incentives and other actions to promote the positive effects.

• The requirement of the National Environmental Act 2004 that all districts should have a trained environmental scientist should be enforced.

• There is a need to be more explicit about the division of responsibilities between the zonal office and the district office as regards handling environmental matters.

3.6 Seizing the opportunity for entrepreneurship development

• The local and regional levels of governmentshould take initiatives to meet the standards and supply requirements and build the capacity to meet the quality and standards requirements.

• Action should be taken to provide more education on how these dedicated groups may benefit from the gas economy and facilitate identification of opportunities of the benefits from the gas economy and awareness on what actions they should take to harness opportunities from the gas economy.


• Local governments’ efforts should be directed towards providing awareness creation and helping entrepreneurs to secure reliable markets for their products. The regions could establish a

marketing desk, which could have the task of networking with other market development institutions in the country and beyond to improve access to appropriate markets.


4.1 List of Participants

4.1.1 List of Regional Secretariat, LGAs Officials and other participants in Mtwara

SN FULL NAME TITLE CONTACTS/PHONE

1. Dr. CHARLES MKOMBE Ag. DED - MASASI DC 07599408402. ELIAS NYABUSAI AAS - RC OFFICE 07542102463. KOMBANIA, EDWIN Z. Ag. HPMU - RS MTWARA 07674790474. NURU RINGO AAS - RC OFFICE 07835629975. MGALULA HUMPHREY RAS OFFICE 07167779506. SULPIS LIKANDA Ag. DED - NANYUMBU 06866861237. OMARI FUNGO Ag. DPLO - NANYUMBU DC 07848602248. Eng. KAPUULYA MUSOMBA Ag. MD - TPDC 07543130719. Prof. RAZACK LOKINA ASS. PROF. - UDSM 0784574369

10. DUNCAN G. THEBAS AAS PC - RS MTWARA 075461834311. Eng. FALAURA S. KIKUSA Ass. RWE - RS MTWARA 065206693112. SHAIBU DADI Ag. TPLO - MASASI TC 078422548913. PROSPER HAULE Ag. DPLO - NEWALA DC 067208858514. ZUENA UNGELE Ag. TD - MASASI TC 071340945215. DENIS KITALI Ag. DED - MTWARA DC 071292070516. GODFREY R. MWANJALA DSEO - MTWARA DC 071328948617. HAMIDU NDAGO Ag. DAICO - MTWARA DC 068699956018. MAGNUS KISWEKA Ag. DIPLO - MTWARA DC 071282872319. PALANGO S. ABDUL DAS - NANYUMBU 078682338620. SIWA ZABRON PA/MD - TPDC 0754460050

21. FRANCIS T. MKUTI Ag. DAS - MTWARA 0784795223& 0715795223

22. REHEMA S. MMAMDOWA DSO 0713057887

23. MWONGI, ERNEST D. MUNICIPAL ECONOMIST 0754390578

24. MATHIAS CHIKOLEKA RS MTWARA 0782308151& 0717391773

25. FRANCIS KASEMBE DED OFFICE - MASASI 068952315826. JAMES CHIKOMO NANYUMBU 078904701127. FELIX DAUD Ag. REO 075232603028. AMANI RUSAL Ag. AASS 0785581807

29. OLIVER BENJAMIN RS OFFICE - MTWARA 0673223732

4. ANNEXES



30. ISSA NYATUKA Ag. DPLO - MASASI DC 0782842837& 0713403670

31. LUCY MATEM Ag. DED - NEWALA 075376354832. FLORA ALOYS MEO (P) - MTWARA MC 078469667433. KESSY MWAISHINDE DC OFFICE - MASASI 078449937934. ROBERT DADAYA LEGAL OFFICER - RS MTWARA 065291968835. MKAMA RUZANGI CHIEF ACC. - RS MTWARA 071264344036. Eng. REJEA S. NG’ONDYA Ass. RAS - RS MTWARA 078490199037. CYRUS K. KAPINGA ECONOMIST - NANYAMBA TC 075577617638. MTESIGWA, BM TEMO - NANYAMBA 071628572839. BENAYA KAPINGA DAS - MASASI 075482272140. SELEMAN MZEE DC - MASASI 071526633741. JOACHIM WANGABO DC - NANYUMBU 075406655642. RENATUS MONGOGWELA AS. RAS - MTWARA 065913127643. HAMISI ISSA MD - MTWARA MC 065598961044. IDDI ABEID MASASI TC 071282489545. SIMON ZABRON TPDC 0754460050

46. EBAHART DILIWAAss. COMMISSIONER, NATURAL GAS - MINISTRY OF ENERGY AND MINERALS

0753215566

47. Eng. MWANAMANI B. KIDAYAAss. COMMISSIONER,PETROL - MINISTRY OF ENERGY AND MINERALS

0755 823528

48. Prof. SAMUEL WANGWE PRINCIPLE RESEARCH ASSOCIATE - ESRF 0715325487

49. Prof. FORTUNATA SONGORA MAKENE Ass. ED - ESRF 0673658770

50. Mr. PATRICK TUNI KIHENZILE RESEARCHER - ESRF 0752001500

51. MUSSA M. MARTINE RESEARCHER - ESRF 0787176710


4.1.2 List of Regional Secretariat, LGAs Officials and other participants in Lindi


1. EZEKIE M. SUMBUKA MPO - LINDI MC 0767626668 & 0622626668

2. ZAWADI J. JILALA RNRO - RS LINDI 0788604192

3. ALFAO J. SANGA Ag. DPLO - KILWA DC 0766461885

4. MWAIKANDAGE, R.G. ECONOMIST - LINDI DC 0712676813

5. PATRICK SENGA Ag. DNRO - LINDI DC 0713505531

6. STEVEN R. B. CIA - RS LINDI 0713058114

7. ERASMO TELLUN MEPO - LINDI MC 0754807048

8. Adv. ALBERT MWOMBELA LO - RS LINDI 0713364183

9. MKWANGA B.A PMU - RS LINDI 0717408129

10. JUSTIN J MONKO DED - LIWALE 0767909011

11. RUKIA MUWANGO DC - NACHINGWEA 0788211330

12. SALUM MPILI Ag. DPLO - LINDI DC 0717131746

13. JOMAARY MRISHO SATURA MC DIRECTOR - LINDI MC 0767042958

14. METUSELA MAGAYANE MCHUMI - LINDI MC 0712362847

15. ISMAIL MBANI Env. OFFICER - LINDI DC 0784941856

16. IDD T. MAKETA CDO - LINDI MC 0714444134

17. MARO ANNA RCDO 0653562646

18. PROSPER M. ROMAN AAS - RS LINDI 0655468549

19. VICTOR MIMBI PRTO - RS LINDI 0655041777

20. CHRISTOPHER NGUBIAGAI DC - KILWA 0764617683

21. G. NYAMWIHURA FCDO - RS LINDI 0754786393

22. SARAH V. CHIWAMBA DC - LIWALE 0754029930

23. JACKSON F. MKULASI Ag. CA - RS LINDI 0713051556

24. WAMJUNGWI R.M STATISTIAN - RS LINDI 0714608807

25. DENIS VENANCE ICTO - RS LINDI 0713597457

26. DAVID MKONDYA Ag. AAS WATER - LINDI 0719818943

27. BAKARI M. BAKARI DED - NACHINGWEA 0658256847

28. ELIBAKARI J. MATOLE COMMUNICATION OFFICER - RS LINDI 0715601069

29. RAMADHANI KASMA RAS - LINDI 0754384237

30. SHAIBU NDEMANGA DC - LINDI 0756000359

31. SAIDI M. MUNJAI Ag. AAS ECONOMIST - RS LINDI 0783732686

32. JUVENALIS MAUNA MEMO - LINDI MC 0679240695

33. ANDREA G. CHEZWE DED - RUANGWA 0767090164

34. MAGOLANGA E. MASALU Admn. OFFICER - RS LINDI 0713199637

35. SAID H. CHOTI ECONOMIST - RS LINDI 0713103994

36. THOMAS SAFARI DAS - LINDI 0784711611



37. MWINJUMA MKUNGU PA - RC LINDI 0786518424

38. JUHUDI B. MGALLA AAS - LINDI DC 0718050617

39. RASHIDI NAMKWALA DCDO - LINDI DC 0784675037

40. RAYAN SALEH CDO - LINDI 0653701050

41. SAMWEL W. GUNZAR DED - LINDI DC 0686061600

42. ZABLON I. BUGINGO DED - KILWA 0784226143

43. Hon. GODFREY ZAMBI RC - LINDI

44. Prof. RAZACK LOKINA Ass. PROF. - UDSM 0784574369

45. EBAHART DILIWAAss. COMMISSIONER, NATURAL GAS - MINISTRY OF ENERGY AND MINERALS

0753215566

46. Eng. MWANAMANI B. KIDAYAAss. COMMISSIONER, PETROL - MINISTRY OF ENERGY AND MINERALS

0755 823528

47. Prof. SAMUEL WANGWE PRINCIPLE RESEARCH ASSOCIATE - ESRF 0715325487

48. Mr. PATRICK TUNI KIHENZILE RESEARCHER - ESRF 0752001500

49. MUSSA M. MARTINE RESEARCHER - ESRF 0787176710


4.2 Round table discussion pictures in Mtwara and Lindi region

Mtwara Region Group Photo during the round table discussion

Set up for Mtwara Region Round Table Discussion.

Prof. Fortunata Songora Makene, head of strategic research and Publications at ESRF Giving her Opening

Remarks during Mtwara Region Round Table Discussion.

A cross section of participants during Mtwara Region Round table discussion.

Mtwara Regional Administrative Secretary Giving an Opening Speech for the Round Table discussion.


Prof. Samuel Wangwe facilitating the round table discussion while participants following very carefully.

Lindi Region RAS Mr. Ramadhani Kaswa welcomingthe Regional Commissioner to give his Remarks.

Lindi Regional Commissioner Mr. Godfrey Zambi giving his welcoming remarks during the Lindi Round table

discussion.

Mr. Patrick Tuni Kihenzile giving Opening Remarks on behalf of the ESRF Executive Director in Lindi Region roundtable discussion on governance of natural gas

economy. Lindi Region Participants Listenning.


Participants discussing and contributing during the round table discussion session in Lindi Region.

Mr. Christopher Ngubiagai Kilwa DC (Left) and Shaibu Ndemanga-Lindi town DC (Right) contributing during the round table discussion in Lindi region on 19th May 2017.

Documents

PARTICIPATORY GOVERNANCE ON NATURAL GAS …esrf.or.tz/docs/Natural GasEconomyMtwara_Lindi.pdf · Participatory Governance on Natural Gas Economy - Mtwara and Lindi Regions | 5 Mtwara