National News

Zim expedites US$1.3bn second pipeline project

1 Mins read
Information Minister Monica Mutsvangwa

The National Oil Infrastructure Company of Zimbabwe (NOIC) has entered into a joint-venture agreement with Coven Energy Limited to establish a second fuel pipeline from Beira to Harare, government said yesterday, a move which makes Zimbabwe as the hub for the transportation of refined petroleum products in the Sadc region.

The project will result in the NOIC and UK-based Coven Energy entering into a 50:50 public-private partnership.

In a post Cabinet media briefing yesterday, Information, Publicity and Broadcasting Services minister Monica Mutsvangwa said the pipeline will be serving Zimbabwe, Botswana, and South Africa with the project  expected to create employment opportunities as well as generate foreign currency for Zimbabwe.

“The partnership will be for a period of 30 years. The pipeline will also help reduce vehicular congestion and the smuggling of petroleum products and the pipeline will be built over four years, at an estimated cost of US$1.3bn,” Mutsvangwa said.

The feasibility study would subsequently inform the government on the way forward.

The project also wants to connect the pipeline to South Africa, Botswana, Zambia, Malawi, and the DRC as part of a long-term plan.

Experts in the oil industry said the deal would radically transform Zimbabwe into a regional petroleum hub, but effectively tilt the dynamics of the local industry largely dominated by Sakunda Holdings owned by business mogul Kuda Tagwirei.

The United Kingdom based firm plans to roll out the project in phases, with the first stage set to receive an US$850m capital injection with the rest expected to come in later stages.

It is understood that earlier plans to set up a second pipeline were frustrated by Cabinet after South African-based Mining Oil and Gas Services had approached the government.

Cabinet also approved the proposed partnership between Bulawayo City Council and Tendy Three (Pvt.) Ltd on the Bulawayo Vehicle Parking Management System Project and proposal for investment by a Belarusian independent power producer in a 100 MW solar energy plant.

Cabinet also approved the proposed partnership involving ZMDC, SIM SEA Pvt Ltd and Honghua International for the resuscitation of Angwa Shaft and the processing of the dump at Chidzikwe.

SOURCE

Related posts
National News

Fertiliser prices skyrocket

Prices of fertiliser have skyrocketed fuelled by supply shortages triggered by the ongoing Russia-Ukraine war, threatening the 2022/23 cropping season, a World…
National News

Chaos rocks Zim education sector

Government has revealed chaos in the education sector and admitted that schools are dishing out half-baked pupils who are forced to graduate…
National News

More than half of Zimbabweans ration meals

More than half of the population in Zimbabwe are rationing meals due to combined effects of rocketing prices of basic goods, economic…

Leave a Reply

Your email address will not be published. Required fields are marked *

984FM