News From Parliament

Bunda residents assured of one billion/- compesation

THE Deputy Minister for Industries and Trade Gregory Teu.

THE government plans to pay out over 1bn/- in compensation to 164 Kirumi residents in Bunda district to pave way for establishment of a special economic zone (SEZ) in Mara region, the national assembly heard here on Tuesday.

Deputy Minister for Industries and Trade Gregory Teu said the treasury had already released the money for the third phase payment scheduled for next month. The government paid 1bn/- and 100m/- in the first and second phases, respectively, benefiting a total of 116 people.

The deputy minister was answering a question by Esther Bulaya (Special Seats-CCM) who had wanted to know when the government would compensate Tairo villagers whose land had been valued since 2007 to pave the way for SEZ projects.

Mr Teu said the ministry through the Export Processing Zones Authority (EPZA) partnered with Bunda District Council to set aside 2,316 hectares of land in Tairo village, covering Kirumi, Mabatini and Bushigwamara areas for SEZ and EPZ projects. According to 2007 evaluation by EPZA, the government had to pay 3.4bn/- to evict the residents but the government found the amount too high to afford.

Through negotiations with Mara regional commissioner's office, EPZA decided to drop the two areas and remain with only Kirumi, which required 2.1bn/- for compensation. EPZ programme was established following the enactment of the Export Processing Zones Act, 2002, providing for establishment of export oriented investments within the designated zones.

The programme envisages attracting and encouraging transfer of new technology, attracting and promoting investment for export led industrialization, creating and expanding foreign exchange earnings as well as increasing employment and development of skilled labour.