Chinese state owned firm Avic International is one of the companies that have submitted bids for a 49 percent stake in the Indeni Petroleum Refinery.
This is according to list released by the Zambia Development Agency late on Friday.
Others are Glencore Plc and Vitol SA including China Petroleum Technology and Development Corporation and Philia Trading Pte Ltd.
ZDA Procurement Specialist Mwila Kapita said seven offers were made for a stake in the 20,000 barrel-a-day Indeni refinery plant.
ZDA Senior Portfolio Analyst Moses Simbeye said bidders can expect feedback from the agency in the next few weeks.
Zambia had twice extended bidding for the Ndola based refinery, which was commissioned in 1973 with a design to produce 1.1 million tons of oil per year but lack of investment has reduced production.
The Zambian government assumed 100 percent ownership of the refinery through Industrial Development Corp. (IDC) when French oil giant Total International which had a 50 percent stake in the firm pulled out in 2009.
Zambia has considered the construction of a new refinery to meet rising fuel needs, but this option has proved too costly, and the focus has now returned to the potential for renovating the existing plant.
The required funds for renovations have not been broken down, but would most likely be in the region of US$500 million.
The recapitalisation of Indeni including expansion of the plant capacity requires about US$2 billion.
Indeni is the only refinery in the country and has a semi-monopolistic status with a processing capacity of 25,000 barrels (one barrel equal 156 litres) of crude oil (co-mingled) per day, and its design was based on an annual throughput of 1.1 million tonnes based on 330 stream days of production.
But due to a reduced heavy fuel market that resulted in increased spiking of crude oil and other factors, the refinery’s value has kept shrinking and its production capacity reduced to about 600,000 tonnes per year.
Indeni processes crude pumped through the 1,060-mile Tazama pipeline from the Tanzanian port city of Dar Es Salaam.
Ba ZDA please tell the other bidders that they are wasting their time. Lungu and AVIC have already signed the purchase papers for that 49%.
This is a great confirmation that Zambia is living in a dangerous time, the country has been sold to an over populated country.
Is Avic an oil company? Am lost!
Victoria Falls, Zesco, Kariba dam, Kuomboka ceremony, Kafue national Park, etc will be mortgaged to Chinese by 2021.
That’s what happens when u have a corrupt Malawian Lungu residing in pockets of tu ma Cho-Cho-Lee.
Instead of woodworking others bidders like in the top star deal, just tell them to pull out before its too late. Lungu is a hardcore in corruption. He has reached the pinnacle of manipulation, aggrandizement, narcissism, grandeur and he doesn’t care what anybody says, thinks or feels for as long as his bank account is getting fatter by the day.Stop this rot now before we see another fire tender debacle. Ala twafwa.
There’s an old song in Zambia, “inkongole shilaleta umu sebanya”. No wonder they had attempted to start Chinese toy cops. That was so stupid.
As the situation stands right now, E C lungu is like a WILD MEAT to me left for the wild dogs.
These PF cats wants to take advantage of zedian people and economy just exactly the way we got screwed by UNIP and the surviving old man. Those MFs feed roller meal like it was normal food.
Which surviving old man, iwe chipuwa!Nkana kitwe?
@Silent Observer, just respect yourself even if you’re among those that kiss their behind. Insulting makes you a complete well rounded Azz Hole.
HH, you’ve covered so many kilometers. This is not the time for you to give up. Lungu is selling Zambia, I already warned him about selling copperbelt. I will deal with dental fimofimo.
Zambia needs to fix the legal system. Judges, DPP should be appointed by a parliamentary committee. The judiciary is weak and are all cronies of Lungu. Take a leaf from South Africa. Even the most powerful Zuma will have his day in court.
The forest has been shrinking and yet the trees keep voting for the AXE because its handle is made of wood and they still think it is one of them!
Give the trees another chance and they will still vote for an AXE on account of its wooden handle!
The name AVIC should not come anywhere near this vital Zambian Industry, we know who they are, the shareholders and why they are trying to get a stake in this national asset. Lungu, Chitotela and Kampyongo do not dare the Zambians on this one, you have already chewed more than you can swallow.
Not a problem, AVIC just as bad or just as good as an American, British, French or Russion or even Korean provided they have good investment policies what the heck? From tribalism (only tonga for president of upndeez) now you want to become racists. Shameful really.
Another asset will be sold again to these AVIC Chines…only ZESCO is remaining then Zambians will own nothing…these PF thieves will not stop
Most pipo were warned about the man who is in state house he will auction Zambia and we are seen it with our open eyes. RB sold zamtel hails from chipata and mr modi has sold things as well hails from chipata. 2021 pipo still want to vote for him.
Kwena whn are we going to come to our senses, frm wht we hv sold, wht or where is our benefits? Where is the monies or frm it, wht hv we done with it? Where is all the money frm the sales, no one could give the nation any answer, but all industries are going into foreign hsnds, are the given out freely? We hv alot of questions than answers, if so better we keep thm thn being sold for nothing, whn is our pride, if wht we hd is sold fo nothing, we cant be jst providing labour ad being paid peanuts or going months without pay. Awee Zambian leaders wake up, we cant be repeating the same mistakes. Privatisation hs failed becos we’re jst losing everything ad this lsnd will be a wasteland. Dont give away our industries bt add some more for our benefits, think of the years to come.
The ultimate solution to the problem of fuel in Zambia lies in building a refinery that can process crude oil and not semi-crude like the case is today at Indeni. When we go that route even the cost of road construction will significantly come down as bitumen will be processed as by product within Zambia. The absence of such facility coupled with too many middlemen is what has made the cost of fuel higher than other counties in the region
we need to sacrifice as a nation now and reap the benefits later. On bidders, AVIC and Glencore don’t mean well for Zambia.
You started well by laying down a good argument but you don’t say why Avic is not the best bidder.. is it the investor’s fault that we cannot improve our oil refining industry?
Of course, not all foreign investors mean well for developing countries like Zambia but my view is that there is also a win-win scenario in cases like this where the infrastructure is already in our hands. Apart from creating jobs, paying taxes, and bringing the badly-needed forex, the Chinese also have better technology and can spread their knowledge to the hired locals. As a country, we can capitalize on this opportunity by learning from them so that we continue to be productive even after they have left.
With electric cars on the market….this
Must be well thought of before making a loss
Before you complain fi upnd,read the story again.before 2009,Total had 50% shares in Indeni but they pulled out in 2009.meaning,Zambian Govnt is right to find another Investor to replace Total.today only Chinese firms have money,so let Avic International or any other Chinese firm to buy 49% shares in Indeni and pump in more capital in this oil company.
UPND TRIBAL CADRES, LEARN TO READ AND UNDERSTAND THE ISSUE AT HAND BEFORE YOU EXPOSE YOUR IGNORANCE!!!if Total didnt put out of Indeni in 2009,Govnt could have not looked for another investor-simple!!
INFACT, GOVT WILL HAVE INCREASED ITS SHARE HOLDING FROM 50%(WHEN THERE WAS TOTAL) TO 51% WITH WHO EVER THE NEW PARTNER WILL BE. SO GOVT WILL HAVE THE MAJORITY SHAREHOLDING AND A FINAL SAY IN DECISION MAKING. SO THIS IS NOT PRIVITISATION. WE ARE ESSENTIALLY REFINANCING INDENI THROUGH SELLING SOME SHAREHOLDING
IN FACT Avic INTERNATIONAL is better THAN Anglo-AMERICA ( kainde ‘s supremacist).glencore is another monster in BEDROOM, nobody will sleep with HIM on the SAME bed, EVIL on ITS head.
So its a case of choosing which is a lesser evil…oh my god, you had a billion dollars Eurobond and you ate it with nothing to show, now you want to sell assets to secretive Chinese State owned companies!!
AVIC has gotten tons of contracts in Zambia. From roads, malls, police camps, tollgates etc…. how will the new local player or SMEs grow under these circumstances???? In as much as the government might say the locals do not have capacity, they still have a mandate to protect them…..
Where is the Rich Hichilema?no patriotism
I think I should write a book for my grandchild to read when they fight for independence in 2064, called
“The Recolonization of Zambia: they came from the East”
Just to help them understand how we resold our country.
DOES FINDING A MINORITY BUSINESS PARTNER TANTAMOUNT TO SELLING?
Aviation Industry Corporation of China (AVIC) is a Chinese state-owned aerospace and defense company…..
I am sure your writing is wasting time!
A friend in need is a friend indeed.
You too daft to understand issues ….you think AVIC is your friend like the Guptas who are safely in India enjoying whilst their foooolish Slave boy is dancing to the tune of the law!!
Before the current regime completes its term of office, 95% of national assets will be Chinese owned.
It doesn’t take a genius to see the government of the day is wrong about INDENI again.
Is it because MOF could not secure debt with IMF that the incumbent government is seeking an easy way out of the crisis by selling the remaining assets including natural resources?
50 years after independence Zambia cannot manage and revamp INDENI, Zamtel even ZNBC.
One viable option would have been floating government shares in INDENI to Zambians. Many Zambians in diaspora want to invest back home. TCs apply. Zambia cannot afford to put all assets under Chinese control.
Zambia needs both economical and political governance in the right direction to national prosperity.
THIS IS A PURE DISPLAY OF YOUR SHALLOW THINKING AND BLATANT DISREGARD OF THE FACTS ON THE GROUND
Inshimbi Zambians in diaspora are blocked because they will upset and expose current corruptive leaders in their deeds. So it’s not easy for us out here to do so. State house says they have a desk at embassies for Zambians in diaspora for such as investments, trade and industry, it’s all balony. The embassy staff it’s self has no clue how to go about it. But our hope out here is that you troops on the ground can help stop such tendencies so that our children can have a country to be proud of. Lungu has big ties with all these Chairman Mao crooks. He dines and breaks bread with them. As much as we display our annoyance the announcement of the tenders is a pseudo announcement, Chairman Mao already got the Indeni tender. Sad very sad selling a country like that.
For correction, Indeni is not refinery its a separator. We dont have a reginery in Zambia. If we had a refinery Indeni would have been producing fertilizer because from refinery waste thats where you make Ureal prill,,urea Granular, D compound, ammonium sulphate, and other fertilizers
Am pretty sure if we cut out unnecessary presidential trips, allowances, commissions, corruption, campaign funds, greed… we can raise the $2billion needed.
HH is a chronic loser who will soon retire as a loser!
Dull!
From donkis to cats? You are evolving fast!