Zimbabwe, British firm signs accord to build US$1.3 billion fuel pipeline

Three other investment projects given the nod.

0
393

HARARE – The government through the National Oil Infrastructure Company (NOIC) of Zimbabwe has entered into a joint-venture agreement with Coven Energy Limited to kickstart the construction of a US$1.3 billion second fuel pipeline from Beira to Harare.

The project which will see NOIC and the British-based Coven Energy entering into a 50:50 Public-Private Partnership is meant to establish Zimbabwe as the hub for the transportation of refined petroleum products to countries in the SADC region, namely Zimbabwe, Botswana and South Africa.

As part of the long-term plan, the project also seeks to connect the pipeline to South Africa, Botswana, Zambia, Malawi, and the Democratic Republic of Congo (DRC).

“The project will create employment opportunities as well as generate foreign currency for the country,” Information Minister, Monica Mutsvangwa said in a post-cabinet media briefing on Wednesday.

“It will also help reduce vehicular congestion and the smuggling of petroleum products.”

According to Minister Mutsvangwa, the pipeline will be built over four (4) years at an estimated cost of US$1.3 billion and the partnership will be for a period of 30 years.

“Cabinet resolved that the parties sign a Memorandum of Understanding for purposes of conducting a bankable feasibility study which they will fund,” she said adding that “the feasibility study would subsequently inform Government on the way forward.”

Meanwhile, 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.

Equity Axis News

LEAVE A REPLY

Please enter your comment!
Please enter your name here