Indeni Refinery is inefficient and technologically unsuited for current fuel needs-World Bank

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Indeni Oil Refinery
Indeni Oil Refinery
THE World Bank has said the use of Indeni Refinery in Ndola increases the cost of fuel for the Government and the consumers, as it is inefficient and technologically unsuited for the 21st century fuel needs.

World Bank country director Ina Ruthenberg said this was one of the underlying challenges associated with the supply of fuel in Zambia that needed to be resolved.

Ms Ruthenberg said that any new refinery based on Zambia’s needs could be too small to compete with the massive new refineries coming around the world.INDENI oil refinery

She said in light of the worldwide transition towards larger scale and more efficient oil refineries, it would be important to re-evaluate the benefits of continuing to operate a national refinery.

Ms Ruthenberg was speaking when she appeared before the Parliamentary Committee on Estimates chaired by Mbala Member of Parliament Mwalimu Simfukwe in Lusaka yesterday.

“If the refinery approach was abandoned and Zambia wanted to move to a price adjustment system like South Africa, institutional coordination between the Energy Regulation Board (ERB), Ministry of Energy and Water and Ministry of Finance needs to be improved,” she said.

Ms Ruthenberg said there remained a need to increase transparency in national fuel procurement as the availability and transparency of energy subsidy data was essential in overcoming some of the challenges related to reform.

She said the Government should start increasing electricity tariffs in a gradual manner, for both mining and non-mining consumers, in order to try and reduce the subsidy.

Ms Ruthenberg said to do this, the Government should ensure that both mining and non-mining consumers were brought around the table to improve the financial sustainability of the sector.

She, however, said that low tariffs were not the only issue in the electricity sector, but there were other challenges which needed to be addressed.

The challenges included strengthening the sector’s planning and procurement processes, carrying out cost supply study to determine cost-reflective tariffs, reviewing Zesco and implementing demand side measures.

“Zambia needs to develop and update regularly a Least Cost Power Supply Development Plan (LCPDP) that lays out investments required in all segments of the power sector, and a procurement framework that ensures the transparent and competitive delivery of new plant should be established,” Ms Ruthenberg said.

She added that implementing demand side measures would help reduce demand for electricity, as such a move had been successfully used in Ethiopia, Rwanda and Uganda, among other countries.

81 COMMENTS

  1. +6
    -14
    vote

    close the plant

    Accounting jobs are the best in the world

    without accountants the world will not revolve

    Thanks

    Bb2014,16

    • +6
      -2
      vote

      I wonder what they are going to do with all that scrap metal that makes up Indeni. TOTAL of France knew this a long time ago and that is why they gave up their 50% stake for free a long time ago.

    • +2
      0
      vote

      you must be an annoyance to your spouse, whether male or female but you sound like a transgender yourself.

    • +2
      0
      vote

      @Mushota,Very shallow,an accountant can’t work alone in any institution. For that reason we have different other department

    • +2
      0
      vote

      Zambians have been paying for this idiocy for nearly 50 years now. Time to get REAL! This is why we have the HIGHEST fuel prices in the region.

      And it has opened the door to massive CORRUPTION in fuel procurement by thieves in Government.

      If it was closed down IMMEDIATELY and fuel supply was done by OMCs Zambia would have cheaper fuel and mulitiple benefits right away. It would be a huge boost to the economy. There is no justification for keeping it running except to give corrupt politicians one more way to steal from poor Zambians.

    • +2
      0
      vote

      WE SHOULD SIT DOWN AND THINK. WE SHOULD BEGIN TO JUDGE OUR LEADERS’ PERFORMANCE IN OFFICES, ESPECIALLY THE PRESIDENT BASED ON THE PERFORMANCE OF ALL PARASTATALS.
      ==================================
      Indeni is critical to our economy, I am sure calls to upgrade the facility at INDENI have long been made. I expect ECL and Mutati to begin to effectively and efficiently manage these key strategic pieces of industries in Zambia.

  2. +6
    -2
    vote

    VERY PERTINENT OBSERVATIONS from the World Bank. We HOPE the AUDIENCE HAD UNDERSTOOD all these issues, DIGESTED THEM and then COME UP WITH STRATEGIES ON HOW BEST TO IMPROVE OUR ENERGY SECTOR. In my View NOT EVERYTHING SHOULD BE TAKEN AS GIVEN as our ZAMBIAN CASE as a LANDLOCKED NON OIL PRODUCING COUNTRY NEED TO TAKEN INTO CONSIDERATION Vs OWNING A REFINERY!! As for electricity, yes ZESCO needs, ERB, Ministry of Energy and various policies need a THOROUGH RELOOK and a PRO-ACTIVE APPROACH to IMPLEMENTING POSITIVE CHANGES!!

    • +7
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      vote

      I DO NOT AGREE THAT ZAMBIA SHOULD DO AWAY WITH THE REFINERY. WHAT OUR REFINERY NEEDS TO MAKE IT VIABLE IS TO INVEST IN AN HYDRO-CRACKER THAT WOULD ALLOW INDENI TO IMPORT PURE CRUDE OIL AS OPPOSED TO THE CURRENT ARRANGEMENT. LIBYA HAD A SIMILAR REFINERY BEFORE. THEY ADDED AN HYDRO-CRACKER TO IMPROVE PERFORMANCE. I HAD AN OPPORTUNITY TO VISIT THIS REFINERY TO SEE FOR MYSELF. PEOPLE SHOULD NOT TAKE EVERYTHING THAT THE WORLD BANK SAYS AS GOSPEL TRUTH. AT TIMES, NOT ALWAYS, THEY SAY THINGS WITH AN ULTERIOR MOTIVE TO SERVE THE INTERESTS OF MULTI-NATIONAL COMPANIES. AT ONE TIME, DURING THE TIME OF THE CHILUBA ADMINISTRATION, SIMILAR SENTIMENTS WERE EXPRESSED BY A BRENTWOOD INSTITUTIONS DELEGATION. FORTUNATENATELY A ZAMBIAN, WORKING FOR BP IN SOUTH AFRICA HAD TIPPED THE STATE HOUSE ABOUT THE…

    • +1
      0
      vote

      @3.1 Jack kalala I hope you are in agreement with my point as I posted “In my View NOT EVERYTHING SHOULD BE TAKEN AS GIVEN as our ZAMBIAN CASE as a LANDLOCKED NON OIL PRODUCING COUNTRY NEED TO TAKEN INTO CONSIDERATION Vs OWNING A REFINERY!!

    • +4
      -1
      vote

      …MEETING THE PARTICULAR DELEGATION HAD WITH BP IN SOUTH AFRICA BEFORE PROCEEDING TO LUSAKA. THIS PATRIOTIC ZAMBIAN INFORMED THE ZAMBIAN AUTHORITIES THAT THE DELEGATION WOULD REQUEST THE ZAMBIAN GOVERNMENT TO CLOSE INDENI SO THAT THE WHITE PRODUCTS COULD BE IMPORTED FROM THE BP REFINERY IN SOUTH AFRICA. REMEMBER THE POSITION OF THESE INSTITUTIONS’ POSITION ON TAZARA. EVEN THE STEEL PLANT IN KAFUE WAS OPPOSED FOR VESTED REGIONAL INTERESTS BUT PRESIDENT MWANAWASA HAD TO PUT HIS FOOT DOWN TO LET IT GO AHEAD. TIKA STEEL PROJECT WAS MADE TO FAIL FOR THE SAME REASONS.
      I AM NOT SAYING INDENI IS PERFECT IN ITS CURRENT FORM. IT REQUIRES TO BE OVERHAULED BUT NOT TO BE CLOSED.

  3. +9
    0
    vote

    Sadly, she has not established why ZESCO must increase its tariffs to make the electrical sector attractive for new entrants! It is not ZESCO’s business to attract competition because ZESCO was set up with our money as tax-payers. ZESCO must improve its services and lower its wage bill because the huge wage bill eats away its own muscle for further growth and spares acquisitions.
    It is up to any other supplier to setup its own energy generation facility and compete for clients with ZESCO providing the backbone for distribution, just like ZAMTEL works as a backbone to other providers!

    • vote

      WIllombe I totally agree with you. Most of the advise we get from the World Bank has their own interests upfront than the development of our country and the uplifting of the majority of our people from abject poverty. Just like their SAP, they care less for the social safety net for the poor.
      Zambia is attracting international and local investors in the ELECTRICITY ENERGY SUBSECTOR and some of these will approach the World Bank for funding hence they are simply lobbying for the obvious in this aspect.
      Zesco is our company and any investor in the SUB-SECTOR should consult Ndola Energy how it has collaborated with ZESCO in Ndola to end load-shedding. I live in Ndola and work in Lusaka.

  4. +6
    -3
    vote

    DON’T LISTEN TO THESE PEOPLE!!! THESE ARE THE SAME PEOPLE THAT BOMBED INDENI WHEN IT WAS AT ITS PEAK PERFORMANCE. THESE PEOPLE HAVE NO GOOD INTENTIONS FOR AFRICA. THEY WANT TO KEEP US POOR SO WE CAN CONTINUE GETTING LOANS FROM THEM. THE DON’T WANT AFRICA TO DEVELOP. WHY SHOULD ZESCO INCREASE TARRIFS??? THESE PEOPLE ARE VERY EVIL. DON’T LISTEN TO THEM.

    • +4
      -1
      vote

      Yes they “bemoan ” our poverty levels but at the same time they want to increase energy tarrifs which will in turn increase by high cost of living which will in turn deepen further our poverty levels.

    • +3
      0
      vote

      @6 Lombe, while you may have some points in what you are saying, SOME OF THE SUGGESTIONS needs to be listened to, WELL EXAMINED and PICK THE POSITIVES FROM THEM! The World Bank and IMF DO NOT invite us to go and borrow from them, it is MOSTLY OUR OWN POOR MANAGEMENT OF OUR NATIONAL AFFAIRS that take us to them!! Forexample,WHY SHOULD WE WAIT TO IMPROVE ZESCO,ZAMTEL and OTHER PARASTATALS TILL THEY REACH INSOLVENCY only to run to the World Bank and start implementing UNBELIEVABLE measures that we could have avoided BY ALLOWING THESE INSTITUTIONS TO RUN PROFESSIONALY,FREE FROM POLITICAL INTERFERENCE! Why SHOULD WE INCREASE ELECTRICITY TARIFF just to assure profits for foreigners and NOT OUR OWN PUBLIC UTILITIES?

    • +2
      0
      vote

      But we have heard before that Indeni just makes our fuel more expensive than in our neighbouring Countries. Infact Indeni is just a separator and not refiner. What happens is that they mix everything in the pipeline petro, diesel, paraffin etc and it gets separated at Indeni, its just un unnecessary cost. Infact Mr SAta and other have spoken on this issue of Indeni. The problem is how to deal with it as someone has said all that infrastructure or scrap metal if you like and all the human resource where do they go. So the matter becomes a political issue, and who wants to lose an election. And am sure HH would jump on it to politicise it, make polical mileage out of it.

      Moreover, other alternatives have already been proposed such as to let the private sector transport fuel on the road…

  5. +6
    -2
    vote

    Honestly, a Refinery for a landlocked country like Zambia is a must. Build a new refinery then decide on Indeni please. I have never heard anything positive from world bank about Indeni for many years and have been wondering why?

    Is it true that Zambia is going to be rich once we close Indeni? I think such statements should only come from people who have been running the Refinery. Govt has been investing millions of dollars in the Refinery and its surprising to see such kind of a headline. Do these people really mean well for Zambia? I remember years back people who were influencing the closure of Indeni are those companies who wanted to make huge profits out of imports because smaller OMCs did not have the capacity to import. Does that benefit Zambia or selfish individuals who…

  6. +3
    -1
    vote

    We listen so much to these i.d.i.t.s. Soon they will tell us to start eating one meal in a day so that we can make some good saving for other development programmes

    • +3
      -3
      vote

      Unfortunately we have reached a point where we don’t want to listen to our own experts because of politics. It is shameful to wait to be told by outsiders the same things your own experts have said. When experts say the high fuel prices in Zambia are artificial and that it could be cheaper, our own ba kandile argue otherwise. Well there you have it. When World Bank speaks, you seem ready to listen. Next is Nitrogen Chemicals and ZESCO. These must be privatized!

  7. +2
    -2
    vote

    We must continue operating our own refineries. Explore markets for oil products outside Zambia to say, DRC, Malawi, Botswana, Namibia, Zimbabwe etc. Economies of scale will then allow us to operate bigger refineries. If we become simply a consumer economy, we shall not provide jobs and we shall forever be at the mercy of others.

  8. +3
    -1
    vote

    Two points…. greater power generation thru greater investment in the sector should maintain or lower electricity tariffs. Increasing rates in a ooor country achieces greater poverty….. do any of these people live as compound people… no ..we live the reality they live the textbook approach.

    Point 2….. dont read what is being said read what is being set up to happen….closure and then we buy from a preferred country

  9. +3
    -1
    vote

    I have to recognise that government is actually paying attention to comments that people make on social media platforms.
    With this in mind, my humble plea to fellow Zambians is for competent persons in relevant fields to add their voice to issues under discussion. Do not allow untrue or dubious theories or stories to go unchallenged when you out there you have the correct picture.
    Let us all contribute to develop our country. We only have one Zambia

    • 0
      -1
      vote

      THANK YOU VERY MUCH MR. JACK KALALA AND OTHERS FOR THE WONDERFUL INSIGHTS ON THE STATUS OF INDENI TO THE NATION VERSUS THE BABY CRIES OF THE WORLD BANK TO CLOSE INDENI. THE NATION MUST KNOW THE TRUTH ABOUT INDENI AND ONLY THE TRUTH SHALL SET US FREE AS THE BIBLE SAYS. INDENI IS VERY MUCH IMPORTANT TO ZAMBIA AND CONTRARY TO THE WORLD BANK IGNORANT RANTINGS INDENI DOES NOT CONTRIBUTE TO THE HIGH PRICES OF PETROLEUM PRODUCTS ON THE ZAMBIAN MARKET. TO LET THE TRUTH COME OUT ABOUT INDENI I HAVE THE FOLLOWING TO STATE IN DEFENSE:
      1. INDENI HAS UNDERGONE MASSIVE RE-CAPITALISATION OVER THE YEARS TO INCREASE EFFICIENCY. THE PRIMARY DISTILLATION UNIT IS WAS INSTALLED IN 2001 AND COMMISSIONED IN 2002 AFTER THE 1999 FIRE THAT GUTTED THE ENTIRE PRIMARY DISTALLATION UNIT. IS THIS INEFFICIENCY?
      2…

    • vote

      2. THE SAME WORLD BANK MISLED F.T.J. CHILUBA TO CLOSE THE VACUUM UNIT FOR BITUMEN PRODUCTION FOR ROADS AND THEIR MULTI-NATIONAL FRIENDLY COMPANIES PROMISED TO BE DELIVER BITUMEN FOR ZAMBIAN ROADS IN DRUMS AND EXERCISE THAT HAS PROVED TO BE COSTLY TO THE NATION. IT FAILED TO WORK AND THE RB GOVERNMENT STARTED THE REVAMP VACUUM UNIT AND IT WAS COMPLETED AND COMMISSIONED IN THE SATA GOVERNMENT!! IS THIS INEFFICIENCY?
      3. ERB HAS SET BENCH MARKS FOR INDENI OPERATIONS FOR LOSSES TO BE WITHIN THE PRESCRIBED AND INDENI HAS RISEN UP TO THE CHALLENGE BRINGING ITS OPERATIONAL COSTS/LOSSES TO LESS THAN WHAT ERB/MINISTRY OF ENERGY/MINISTRY OF FINANCE REQUIRES. IS THIS INEFFICIENCY?
      4. INDENI HAS ITS OWN POWER GENERATION PLANT AND DOES NOT DEPEND ON ZESCO POWER SUPPLY FROM YEAR 2006 IN AN EFFORT TO…

  10. +3
    0
    vote

    Cont.. Does that benefit Zambia or a few individuals who are thirsty for huge profits? They is too much focus on profit making than the warfare of an average Zambian; Close Indeni, Increase Zesco tarrifs etc. why?

    The Govt should set limits as to how far people can comment on their institutions. Remember bad publicity can negatively affect the organization, both shareholders and employees. There must be better ways of addressing Institutional matters. More than 10 years ago someone was talking about closing Indeni but its the Same Refinery which we have relied on up to now and no one has provided any alternative. Please build, then Close.

  11. +4
    0
    vote

    Thankfully Dangote is already thinking ahead! Plans are already underway to set up a state of the art refinery, a thing we ourselves have failed to do because we have been blinded by politicians! The only hurdle remaining is ERB. This institution has failed us!

    • +2
      0
      vote

      @13 Zonda.. YOU ARE SPOT ON! And all we shall see is all our money going away, something we could have done!! Though land locked, we are CENTRALLY LOCATED and can TAKE ADVANTAGE of our location to be a PRODUCTION and DISTRIBUTION CENTRE!! We are in COMESA and SADC and so are our neighbors,so what we produce can enter at very low tariffs! So if we import cheap crude from Angola, or Uganda (in near future) by PIPELINE, we REFINE and we can EXPORT to our neighbors quite cheaply!! I think it would STILL BE CHEAPER than importing refined products by road from S.Africa or Tanzania into Katanga and Kasai provinces of DRC,parts of: Malawi,Zimbabwe,Botswana and Tanzania! These are our natural markets for most of the things we can produce cost effectively!!

  12. +1
    0
    vote

    @7 Tara and 91&11 KM AGREED!! It is a question of HAVING PEOPLE WHO THINK AND WORK FOR THE COUNTRY NOT SELFISH CHAPS only interested in being in power!! Though land locked, we are CENTRALLY LOCATED and can TAKE ADVANTAGE of our location to be a PRODUCTION and DISTRIBUTION CENTRE!! We are in COMESA and SADC and so are our neighbors,so what we produce can enter at very low tariffs! So if we import cheap crude from Angola, or Uganda (in near future) by PIPELINE, we REFINE and we can EXPORT to our neighbors quite cheaply!! I think it would STILL BE CHEAPER than importing refined products by road from S.Africa or Tanzania into Katanga and Kasai provinces of DRC,parts of: Malawi,Zimbabwe,Botswana and Tanzania!

  13. +2
    -1
    vote

    @bwafyaa 6.2 You are the only one on this blog who seem to lack understanding of what is going on here. Everyone who has made a comment knows that these World Bank people are evil people who survive on our poverty. Wake Up!

  14. +1
    0
    vote

    @16 Lombe, YOU MISSED MY POINT, if the World Bank is proposing things is bcoz WE HAVE FAILED TO DO OUR WORK PROPERLY!! My suggestion is LISTEN, ANALYSE and then REACT TO ADVICE, you can either throw it out all together, adopt some of it or all of it! Please check this: WHO INVITED THE WB to Parliament and WHY?? Do you believe everything the WB said is true or vice versa?? WHY IS IT THAT OUR ZAMTEL has NOT been making profits when MOST telecoms companies have making VERY DECENT PROFITS YEARS ON!! What would be wrong to increase electricity tariffs to justifiable levels and restructure ZESCO to run professionally? What would be wrong for ZESCO to make money and provide us with an efficient service? Please check my other posts @ 3,13.1 and 15 to have an idea on how I see this whole thing!

  15. 0
    -1
    vote

    We must develop our own country on our own terms. Leastening to foreigners whose agenda is to de-industrialize us is folly and idiotic. I know that we messed up by not investing into quality public education due to our foolishness, but this is no excuse to enslave ourselves by getting rid of our INDENI. We only must have missionary politicians whose agenda must be to do good for the nation, instead of mercenaries like RB, FTJ, etc,

  16. +3
    -1
    vote

    World Bank is part of the Looting Machine in Africa…Common sense is that the World Bank wouldn’t want an African country have it’s own solutions because all they want is to make Africa under developed…Find out from Tanzania which closed it’s refinery plant built same time with the Ndola one how they have been complaining about how they were misled by the World Bank and while at the same time Tanzania praises Zambia by not accepting that nosense…

  17. +1
    -1
    vote

    So all our boarders will be congested with Fuel tankers, all our roads will have oceans of Petrol, diesel, jets fuel, LPG, HFO and all sorts of dangerous GASES spilled all over? Fuel Tankers will be the most common cars on the Zambian road? All the best as you plan to close Indeni.

    • +1
      0
      vote

      This is the situation we have at the moment. Fuel is moved by road to all areas of Zambia. The is an SI to transport part of the materials by rail to decongest roads

    • +1
      0
      vote

      Tara, I work in the Petroleum industry and I can confirm that INDENI cannot satisfy the current demand for petrol products. However, at full capacity it produces 50% of the fuel on the market. Therefore it is still valuable to our economy. The fuel high prices are mostly due to the complicated procurement process with too many middle men. Another addition to the fuel cost is the double handling by TAZAMA where it transport the co-mingled crude to INDENI and again the finished products out of INDENI are pumped to TAZAMA who them sale it to the OMCs on behalf of the government. Both INDENI & TAZAMA are governement institutions and this double handling generates losses especially for Aspirited Motor Spirit (Unleaded Petrol) and handling fees are added to the prices.
      INDENI should be…

  18. +1
    0
    vote

    SAP which was adopted by the MMD government was the brainchild of IMF or World Bank. Has it benefited any country in Africa that adopted it? I doubt if it did. We wouldn’t be reading about this privatisation of Indeni or Zesco if it did. It was a text book solution for all ailing economic woes of Africa which adopted democratic governance from the west. A blanket solution by people who do not even know that Africa is a continent not a country. These are the people whose advice Zambia wants to value. The theoretical aspects of these exotic solutions does not take into account the prevailing conditions and needs of individual countries.

    The west are the beneficiaries of the so called solutions, how pathetic!

    The point is after 50 years of independence we need to come up with a home…

    • +1
      -1
      vote

      But the fact is we need affordable fuel, why should Zambia be only Country in the region with the highest cost of fuel, tell if its not the monster INDENI

  19. +2
    -1
    vote

    …….home grown solution to our economic challenges the country is facing. Let’s not be gullible and take every advice from the west as gospel truth. It doesn’t work most of the time from an African context.

    At the end of the day the whole exercise will be a research case study by the World Bank. A case study on how not to make any developing self reliant in anything!

  20. +1
    -1
    vote

    cheaper fuel is the way forward…..if outside fuel is cheaper lets have it so that we can have a down movement in production costs…….

  21. +1
    -1
    vote

    This story reminds me of Field Ruwe’s story. What are the technocrats in Govenment doing? Do we need outsiders to tell us the obvious? Stop drinking beer and advise Govt properly.

  22. +2
    0
    vote

    I strongly agree that outward looking economic policies are more suitable for rapid growth and development. However, the two policies can be complementary. It is better to have a limited local refinery capacity together with access to additional refined products. The local capacities can crate jobs, transfer technologies, manage external shocks in the supply chain. It is not like closing the country completely to the outside world. It must be technically possible to design a miniature version. Small carriers and large carriers are not necessarily in conflict.

  23. +1
    -1
    vote

    We need a modern plant to operate aloneside Indeni and compare the benefits to he Economy. But one thing for sure is that NEW Technology brings Efficiency, Lower Costs and Lower wastage , Creation of new auxiliary Industries and Products.

  24. 0
    -1
    vote

    We need a modern plant to operate aloneside Indeni and compare the benefits to the Economy. But one thing for sure is that NEW Technology brings Efficiency, Lower Costs and Lower wastage , Creation of new auxiliary Industries and Products.

  25. +1
    -2
    vote

    Indeni must go though, its a monster, a bottomless pit. I suspect those arguing for Indeni are Director or manager at Indeni. A sensible person can see that Indeni is draw back , waste of money

  26. +1
    -1
    vote

    The plant can be improved technologically and capacity is not an issue we can expand it, this muzungu just want to cripple us down. Be careful GRZ by now you should know their agenda.

  27. +1
    -1
    vote

    Zambia must connect with the DRC government since both countries need fuel, via a joint state and state venture. Indeni must not be discarded. The reasons for the majority of citizens agreeing with the WB is due to our poor education which has made us empty of real economic analysis and made to believe in outsiders as a panacea to our development problems and solutions. This is hogwash. We must crank up our technical education at unza and less spending on vitenge for useless dancers with nothing to contribute to our well-being other than deplete our small production of resources in mining!

  28. +2
    0
    vote

    In the short term, we should just continue with traditional methods to supplement our fuel needs…fire wood, charcoal(pardon the un-environmental processing method). Off grid Solar power .

    • +1
      0
      vote

      Good idea!

      Or we could go all the way back to the stone age and really enjoy ourselves!

      Just imagine. No TV or radio to disturb us. Throw your phone in the rubbish.

      We could even forget how to make a FIRE! and live like wild animals in the bush.

      How wonderful!

  29. +2
    0
    vote

    We are in this dispicable position and at the complete mercy of the Bretton Woods because we as a country have failed to define a clear and decisive path for ourselves. Part of the reasons why parastatals in Zambia have been a subject of closures and discussions for closures, is that the history of parastatals in this country is awash with many inordinate cases of poorly managed and failed institutions. Is the problem the fact the parastatal model is moribund? The answer is an emphatic NO!!! Major sectors in the social democratic countries that make up the Scandinavians are a preserve of many successful parastatals. Elsewhere in the continent, Électricité de France (EDF) the world’s largest producer of energy is a parastatal. EDF is so big that it even acquired British Energy Group,…

  30. +2
    0
    vote

    … making it an operator of major nuclear power plants in Britain. So the big problem, my dear friends; is not the World Bank or even the IMF. The problem is not anywhere else; the problem is right here in Zambia and right within ourselves. We ourselves as a nation called Zambia have failed to use our collective knowledge and wisdom to effectively deal with what can rightly be called the Zambian Parastatal Paradox of ‘can’t live with them, can’t live without them.” Until the day arrives when we will have to be brutally honest with ourselves as to whether we need parastatals, we will, in the absence of a clearly defined model, continue to pretend we need them. Meanwhile, during all this galloping time, the likes of the World Bank will continue having field days telling us what do to…

    • +1
      0
      vote

      The parastatals failed because KK appointmented unqualified people who he thought were loyal to him especiacially his tribesmaen from Malawi who didn’t know how to run those organisations. This was capled with his socialist ideas of just getting money and giving handouts or subsisdies

  31. +2
    0
    vote

    … and what not to do with the likes of Indeni. And hey it doesn’t matter whether you change the name of the monster from Indeco to Idc. A rotten rose by any other name smells just as bad. (rephrased from Shakespeare’s).

  32. +1
    -1
    vote

    The World Bank and IMF are the same institutions which advised Chiluba to sale all our Parastatals and what happened next? They both started laughing at Zambia’s leadership for being naive. We all know that INDENI needs a new face lift and its not for World Bank to start opening their beaks. We Zambians should work hard for INDENI to be revamped. Zambians woke up, if a person like Trump can ignite his fellow Americans, why should you always buy into Western propaganda.

    • +1
      0
      vote

      But how much will that face lift cost and for how long is Govt going to be pumping money into this bottomless pit called Indeni infact at the expence of other deserving issues

  33. +2
    -4
    vote

    HH’s MANSION is bigger, more modern & comfortable than the Colonial-leftover called State House.

    Everything is outdated/under capacity. e.g. Kariba dam was built only to service the mines & the white population of less than 100,000. Today we have a population of 12million people.

    UTH, UNZA, schools were built when Zambia’s population was 3 million people. But the mass urban migration of Nyanjaz & Bembaz to NWR & breeding of these people Komboni’s has exploded the population to over 12-million. Just take a drive to any Komboni in LSK or any town on the C/belt & see how many kids are loitering around. It’s so pathetic.

  34. +2
    0
    vote

    There’s nothing wrong in having advice from an “outsider ” even if you’ve experts of your own. It’s common in industry to hire outside “opinion “. In mining we have qualified engineers but we normally ask for a second opinion whenever we encounter a problem or want to change our methods. However this “second opinion ” is subject to “examination ” by our own experts.

  35. +2
    -1
    vote

    Let be Careful Zambians World Bank And IMF are MONSTERS .They Already have Their prefered suppliers of Finished products to Zambia. DONT CLOSE INDENI or WE SHALL REGRET IT.

  36. 0
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    vote

    THANK YOU VERY MUCH MR. JACK KALALA AND OTHERS FOR THE WONDERFUL INSIGHTS ON THE STATUS OF INDENI TO THE NATION VERSUS THE BABY CRIES OF THE WORLD BANK TO CLOSE INDENI. THE NATION MUST KNOW THE TRUTH ABOUT INDENI AND ONLY THE TRUTH SHALL SET US FREE AS THE BIBLE SAYS. INDENI IS VERY MUCH IMPORTANT TO ZAMBIA AND CONTRARY TO THE WORLD BANK IGNORANT RANTINGS INDENI DOES NOT CONTRIBUTE TO THE HIGH PRICES OF PETROLEUM PRODUCTS ON THE ZAMBIAN MARKET. TO LET THE TRUTH COME OUT ABOUT INDENI I HAVE THE FOLLOWING TO STATE IN DEFENSE:
    1. INDENI HAS UNDERGONE MASSIVE RE-CAPITALISATION OVER THE YEARS TO INCREASE EFFICIENCY. THE PRIMARY DISTILLATION UNIT IS WAS INSTALLED IN 2001 AND COMMISSIONED IN 2002 AFTER THE 1999 FIRE THAT GUTTED THE ENTIRE PRIMARY DISTALLATION UNIT. IS THIS INEFFICIENCY?
    2…

  37. 0
    -1
    vote

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    Indeni Refinery is inefficient and technologically unsuited for current fuel needs-World Bank
    January 26, 2017602,566 views

    Indeni Oil Refinery
    Indeni Oil Refinery
    THE World Bank has said the use of Indeni Refinery in Ndola increases the cost of fuel for the Government and the consumers, as it is inefficient and technologically unsuited for the 21st century fuel needs.
    World Bank country director Ina Ruthenberg said this was one of the underlying challenges associated with the supply of fuel in Zambia that needed to be resolved.

    Ms Ruthenberg said that any new refinery based on Zambia’s needs could be too small to compete with the massive new refineries coming around the world.INDENI oil refinery

    She said in light of the worldwide…

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    2. THE SAME WORLD BANK MISLED F.T.J. CHILUBA TO CLOSE THE VACUUM UNIT FOR BITUMEN PRODUCTION FOR ROADS AND THEIR MULTI-NATIONAL FRIENDLY COMPANIES PROMISED TO BE DELIVER BITUMEN FOR ZAMBIAN ROADS IN DRUMS AND EXERCISE THAT HAS PROVED TO BE COSTLY TO THE NATION. IT FAILED TO WORK AND THE RB GOVERNMENT STARTED THE REVAMP VACUUM UNIT AND IT WAS COMPLETED AND COMMISSIONED IN THE SATA GOVERNMENT!! IS THIS INEFFICIENCY?
    3. ERB HAS SET BENCH MARKS FOR INDENI OPERATIONS FOR LOSSES TO BE WITHIN THE PRESCRIBED AND INDENI HAS RISEN UP TO THE CHALLENGE BRINGING ITS OPERATIONAL COSTS/LOSSES TO LESS THAN WHAT ERB/MINISTRY OF ENERGY/MINISTRY OF FINANCE REQUIRES. IS THIS INEFFICIENCY?
    4. INDENI HAS ITS OWN POWER GENERATION PLANT AND DOES NOT DEPEND ON ZESCO POWER SUPPLY FROM YEAR 2006 IN AN EFFORT TO…

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    BOOST PRODUCTION AND SUPPORT THE NATION. IS THIS INEFFICIENCY?
    5. INDENI IS PROUD OF A MODERN INTERNATIONALLY RECOMMENDED SAFE AND RELIABLE DIGITALISED DISTRIBUTED CONTROL SYSTEM (DCS) FOR CONTROLLING THE PLANT VIA COMPUTER SCREENS FROM A REMOTE CONTROL ROOM. THE SYSTEM WAS ROLLED OUT IN 2011 AND THIS HAS IMPROVED THE PLANT CONTROL SYSTEMS AND RELIABILITY. THE PLANT IS NOT ABLE TO RUN AND THE HIGHEST RECORDED MONTHLY PRODUCTION FIGURE ON 78, 000MT HAS BEEN POSTED A FEAT THAT HAS NEVER BEEN DONE BEFORE!! IS THIS INEFFICIENCY BY THE WORLD BANK?
    6. INDENI HAS BEEN RATED AS A “LEVEL 6 INTERNATIONAL SAFETY RATING SYSTEM” BY DET NORSKE VERITAS (DNV) OF EUROPE AND THIS MEANS THE REFINERY IS ABLE TO BRUSH SHOULDERS WITH THE WORLD MAJOR REFINERIES AND WALK WITH ITS NECK HIGH CONTRARY TO THE…

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    7. INDENI IS BEING RUN BY 100% LEARNED AND HIGHLY COMPETENT ZAMBIAN MEN AND WOMEN PURELY DEVELOPED FROM ZAMBIAN UNIVERSITIES/COLLEGES AND BRITISH UNIVERSITIES. THERE IS NO SINGLE WHITE MAN OR WOMAN IN INDENI STRUCTURES AND ITS ALSO AN INSULT TO THE ZAMBIAN GOVERNMENT THAT HAS ENTRUSTED THIS MULTI-BILLION INSTALLATION INTO THE HANDS OF THESE BRAINS.
    8. INDENI OPERATIONS ARE MONITORED MY LOCAL REGULATORY BODIES LIKE ZEMA, ERB AND EXTERNAL LOCAL INSTITUTIONS LIKE ALFRED H. KNIGHT AND ZAMBIA BUREAU OF STANDARDS PLUS EXTERNAL INTERNATIONALLY RECOMMENDED INSTITUTIONS LIKE UOP AND INSURANCE AUDIT FIRMS TO WHICH IS PASSES AND HERE COMES THE WORLD BANK COUNTRY REPRESENTATIVE WHO HAS NOT EVEN SEEN INDENI REFINERY POURING OUT IGNORANCE ON MATTERS SHE DOES NOT KNOW APART FROM BEING A VUVUZELA OF…

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    Are you fearing for your jobs gentlemen because what do you have to show for all the efficiencies you are claiming for INDENI because the price of fuel remains high in the region. Can you explain why we have the highest price fuel

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    9. INDENI 100% SUPPORTS NDOLA ENERGY COMPANY WHICH IS CURRENT PRODUCING 50MW OF ELECTRICITY FEEDING THE NATIONAL GRID AND THIS NDOLA ENERGY COMPANY HAS UPGRADED THE GENERATION CAPACITY TO 100MW AND THE WORLD BANK DOES NOT EVEN KNOW THIS COMPANY THAT IS NEXT DOOR TO INDENI AND 100% DEPENDENT ON INDENI FOR FUEL OIL SUPPLY TO RUN CUSHIONING THE ZESCO HYDRO POWER DEFICIT. SHAME ON WORLD BANK.
    10. TO SUM IT UP INDENI AND TAZAMA ARE MILES AHEAD OF THE WORLD BANK IN THAT A “SWOT ANALYSIS” HAS BEEN DONE (PLEASE GOOGLE “SWOT ANALYSIS” FOR FURTHER UNDERSTANDING) TO TRY AND IMPROVE THE OPERATIONS OF THE INSTITUTIONS. THE WORLD BANK COUNTRY REPRESENTATIVE IS TALKING ABOUT SOMETHING THAT IS MILES AHEAD OF HER!!!! WELCOME TO ZAMBIA!!

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    TO PUT SOME COATING ON THE METAL INDENI PRODUCES PRODUCTS THAT CONFORM TO INTERNATIONAL STANDARDS E.G. THE JET FUEL PRODUCED AT INDENI IS THE SAME QUALITY THAT THE JAPANESE AND AMERICAN REFINERIES ARE PRODUCING. SO WHATS THE TALK ABOUT NOT MEETING THIS OR THAT?

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    JK – I don’t work for indeni but one patriotic Zambian who just wants to set the records straight. Indeni has nothing and I repeat nothing to do with fuel prices. Indeni is just a refinery no more no less. It has nothing to do with fuel prices and this is the ignorance that people must understand just as the World Bank country representative is totally lost and mixed up.

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      @Zambian Dweller

      You have just shown your ignorance above.

      “Indeni has nothing and I repeat nothing to do with fuel prices.”

      Are you living in dreamland where employees work for free? And polite government officials decline to steal massive amounts of money through oil procurement contracts because they are so honest?

      Go back to sleep and your dreams. This is the real world here.

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    Taking World Bank & IMF advice is like opting to drink sulphuric acid than water. These good for nothing textbook experts are the ones who misled Zambia to sell all her parastatals for nothing & caused 2008 credit crunch due to poor advice. They occupy these offices for their PHDs they acquire expressly without work experience. Fuel in Zambia is expensive not because oof Indeni but 1. Expensive Crude Oil 2. Expensive Reagents, labour & materials used 3. Expensive Road Transport used in distribution, instead of rail. Corruption is huge contributor.

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    I disagree.
    World bank can’t think for us,let them advise us as they ve done we should pick up some things from what they say but take it with a pinch of salt.zambians will do it one day,by 2030 our population will be 20million plus add another 15yrs this number will still rise,I don’t need text book theory to tell me we need our own technology to process or refine our need.these guys wouldn’t do everything they are telling us,they are teaching pessimism when they themselves are always optimistic when making decisions about there countries,Zambians need to rise and work hard otherwise we will be feed lies as gospel truth.let us build our own remedies in this mess we have found ourselves.its our problem as Zambians no politician will sought this out for us,ownership of Zambia is…

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    I just have 2 points to make as follows;

    1. I am very impressed with INDENI employees because someone told me that they are cowards who cannot even post anything on the social media to defend themselves but I can see now they are talking.

    2. Even a kid can see maliciousness in the world bank over INDENI. How can you honestly fight a company like that? I started hearing about world bank advocating for the closure of Indeni years back when i was very young up to now. Yet the refinery has continued feeding us with gas be it Air craft gas and many others. The hatred World bank has for INDENI is like WALITEMWA UMWANAKASHI UMUSUMA ELYO AKUKANA ELYO WAMUPATA KWATI KATWISHI. Stop telling us what to do with Indeni please.

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    If we were doig things well would anybody be interested in us……take an objective look at our Country..what have we got to show for all internationa donatios funding.what… if they are really interested in raping the country it wouldbe done alreadg,,,,they have collective guilt for past colonial treatment thats why we get vast amou ts of money….thet even forgave our debt,,, we are kwik to blame others so that we dont have to look at ourselves…..
    All our newspapers are local politics do u see internatinal news, latest innovations political and social problems in other countries….. becareful wbo we align ourselves with we might i here inherent there social problems,

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