The Tanzania Petroleum Development Corporation has said it has opened an ESCROW account at Stanbic Bank to deposit payments from various gas production projects as well as to facilitate transactions between the various parties.
TPDC says it opened three Escrow accounts following authorization by the Central Bank of Tanzania. The accounts were also part of conditions set by the lender Exim bank of China with the latter proposing the account be opened at Stanbic bank should procurement rules be followed.
Among the three accounts opened by the corporation include:
- Proceedings from gas production account with the aim of depositing payments from sales of natural gas through the gas pipeline.
- Project development account for the purpose of saving funds for future expansion of the project.
- Debt payment account for the purpose of facilitating payments in relation to loans.
The three accounts will be governed by conditions set by an agreement between the management of the account who include Stanbic Bank (Bank), TPDC (account holder), Exim Bank of China (Lender) as well as Ministry of Finance who is the guarantor on behalf of the Tanzania government.