The discovery of large, deep-sea,natural gas reserves in Southern Tanzania and plans fortheir development have sparked a national discussion abouthow Local Content can be maximized in a way that benefitsthe economy as a whole. Large-scale exploitation ofTanzania’s off-shore gas fields is justified only if much ofthe production can be exported. It is estimated that aninvestment in the range of 30 to 40 billion US dollars willeventually be needed to develop Tanzania’s Liquefied NaturalGas (LNG) production and export capability.However,funding will not be secured until a final investmentdecision (FID) is made, and negotiation delays and thegeneral downturn in gas markets worldwide have pushed thatdecision out to 2018-2019. This interval puts Tanzania in aunique position from a development standpoint because itgives the country more time to prepare local firms andworkers for greater integration in the gas value chain,which works to reduce the risk that the country faces offalling into the common Resource Curse trap. This study is asummary of analytical work performed by the World Bank Group(WBG) directed at helping the Tanzanians increase theirparticipation in the construction of the LNG facility.
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