Leveraging a Large Capital Investment to Develop Local Value Chains : Local Content in the Construction of Tanzania’s LNG Facility
The discovery of large, deep-sea, natural gas reserves in Southern Tanzania and plans for their development have sparked a national discussion about how Local Content can be maximized in a way that benefits the economy as a whole. Large-scale explo...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/725491513158267360/Leveraging-a-large-capital-investment-to-develop-local-value-chains-local-content-in-the-construction-of-Tanzania-s-LNG-facility http://hdl.handle.net/10986/29055 |
| Summary: | The discovery of large, deep-sea,
natural gas reserves in Southern Tanzania and plans for
their development have sparked a national discussion about
how Local Content can be maximized in a way that benefits
the economy as a whole. Large-scale exploitation of
Tanzania’s off-shore gas fields is justified only if much of
the production can be exported. It is estimated that an
investment in the range of 30 to 40 billion US dollars will
eventually be needed to develop Tanzania’s Liquefied Natural
Gas (LNG) production and export capability. However,
funding will not be secured until a final investment
decision (FID) is made, and negotiation delays and the
general downturn in gas markets worldwide have pushed that
decision out to 2018-2019. This interval puts Tanzania in a
unique position from a development standpoint because it
gives the country more time to prepare local firms and
workers for greater integration in the gas value chain,
which works to reduce the risk that the country faces of
falling into the common Resource Curse trap. This study is a
summary of analytical work performed by the World Bank Group
(WBG) directed at helping the Tanzanians increase their
participation in the construction of the LNG facility. |
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