The Air Tanzania plane was impounded in the Netherlands on December 2, 2022. Photo: Air Tanzania

A plane belonging to Air Tanzania, which was impounded in the Netherlands in December 2022, has been released.

The aircraft, Airbus A220-300 5H-TCH, had been grounded after a Swedish private firm, EcoEnergy Limited, won a $165 million lawsuit against the East African country.

Tanzanian Government Chief Spokesperson Gerson Msigwa said the plane landed in the country from the Netherlands on July 6, 2023.

On Saturday, Msigwa, who spoke at a function in the northern city of Arusha, said Tanzania and the Swedish firm held “a successful discussion” that culminated in the aircraft’s release.

He said the plane is being repaired so that it can be used commercially by Air Tanzania.

Land dispute

EcoEnergy Limited had, in 2017, sued the Tanzanian government after it revoked a land title deed acquired by the foreign firm.

The Swedish company, which deals in agro-industrial services, had planned to develop a multibillion-dollar bioelectricity project in Bagamoyo, eastern Tanzania before the title dead was cancelled in 2016.

The Tanzanian government said the parcel of land belonged to Saadani National Park, and that the title deed was irregularly awarded.

The Swedish company, which had worked on the bioelectricity plant for ten years, and had accrued costs worth $52 million, was aggrieved by the decision and filed a breach of contract lawsuit, demanding damages totalling $165 million.

On December 2, 2022, the company obtained an order from a Dutch court to impound Air Tanzania plane after it landed at the country’s airport.

Tanzania expressed its intention to file an appeal against the decision.

The latest deal entered between Tanzania and the aggrieved party – that led to the release of the aircraft – remains unclear.