Thursday, March 28, 2024

Zambia’s petroleum blues to end

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Zambia’s persistent petroleum depressions would become history in future as Government has devised measures that would avert shortages of the feedstock supply in the country.

Minister of Energy and Water Development, Kenneth Konga announced the measures in
Parliament today saying, “with the measures I have outlined, I am confident that the
fuel supply situation will continue to stabilise”.

Mr. Konga said Government, through the Zambia National Tender Board (ZNTB) has
issued a long-term tender for the supply of petroleum feedstock for over two years
to the nation.

The tender for the supply of the petroleum feedstock will close on November 16th,
this year, with the successful bidder expected to supply the Zambian market by the
end of February.

He said the new supplier of fuel would begin supplying the commodity by the end of
February 2008.

“On 5th October 2007, the Zambia National Tender Board advertised an open tender for
the supply and delivery of 1,440,000 metric tonnes of crude feedstock. Financing of
the supply of the feedstock in 2008 will be structured by the successful bidder for
the financing tender,” he said.

In the interim, 150,000 metric tonnes of petroleum feedstock for the months of
January and February 2008 before the new supplier, under the long term tender,
begins to supply the commodity.

Mr. Konga told Parliament in a ministerial statement on petroleum sub-sector that
the new supplier would only start supplying petroleum in February partly because of
the purchase of crude feedstock has to be done six weeks before loading of a
shipment.

“The target of February 2008 will enable us finalise all contractual issues with the
new supplier,” he said.

He said a cargo of 60,000 metric tonnes would arrive in Dar Es Salaam on 24th
November this year addin that the feedstock would last until the first week of
January next year.

He said a further 90,000 metric tonnes cargo would be procured in December, which
would finish in the third week of February 2008, after which the new supplier would
start supplying the Zambian market with fuel.

Mr. Konga said letters of credit for the two cargos would be guaranteed by the Bank
of Zambia to ensure there was no restriction regarding the source of supply.

The Minister also told Parliament that the Energy Regulation Board has proposed a
new pricing formula, which would be submitted to Government for consideration.

“These measures will be part of the long-term national energy strategy that will
cover the period 2008 to 2030 in line with the vision 2030,” he said.

Mr. Konga has meanwhile. said a draft policy on the use of other forms of energy has
been submitted to Cabinet for consideration.

This was after Luapula constituency Patriotic Front (PF) Member of Parliament,
Peter Machungwa asked whether Government had plans to encourage planting crops from
which other fuels such as ethanol could be produced.

And Mr. Konga said Government would not apologise for the diesel shortage that
occurred in the country a month ago because the situation was an emergency.

He said this after Lusaka Central PF MP, Guy Scott asked whether Government would
apologise to the nation for the shortage of supply.

1 COMMENT

  1. In Zed, everything is about tenders coz thats a way fo stealing money, there is OIL next door (Angola), why not start bringing in the stuff from there and set up another refinery in NW province.With the rail coming to NW all will be good.Sheer stealing mentality won’t go away.

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