The Industrial Development Corporation (IDC) has today announced that five companies out of the seven that submitted applications for pre-qualification have been shortlisted for the next stage of selecting a strategic equity partner in Indeni Petroleum Refinery Company Limited.
The five companies who will be invited to submit Request For Proposals (RFP) are:
1. Glencore Energy Limited of the United Kingdom
2. China Petroleum Technology and Development Corporation of China
3. Joint Stock Company Global Security of Russia
4. Sahara Energy Resources Limited of the United Kingdom; and
5. Beijing Huiersanji Green Chem – Tech Co. Ltd and Avic International Holding Corporation Consortium of China
IDC Chief Executive Officer Mr Mateyo Kaluba, said that Indeni’s contribution to the national petroleum demand in Zambia has, since 2005, been less than 50%; and this will progressively reduce if nothing is done to increase the production capacity of the plant.
With a design capacity of 1.1 million metric tonnes per annum and achievable capacity of 850,000 metric tonnes per annum, Indeni processing capacity falls far short of the country’s combined demand of petrol and diesel which currently stands in excess of 1.7 billion litres per annum.
“IDC envisions that a strong strategic equity partner will upscale the production capacity of Indeni to a level that will meet the nation’s petroleum demand for the future. Experts have projected national consumption for fuel in Zambia to hit around 3.5 billion litres by 2030. It is this reason that the IDC would like to ensure Indeni remains relevant to the Zambian economy even by 2075 while at the same time it plays a role in the reduction of fuel pump price”, Mr Kaluba said.
IDC is confident that the shortlisted bidders meet the minimum criteria set for the pre-qualification process.
These firms will now be invited to submit their technical and financial proposals.
This is according to a statement issued by IDC Public Relations Manager Namakau Mukelabai.
NO ZAMBIAN COMPANY……….UUMMM WE LIKE OFFSHORE FIMOFIMO
GBM is not interested??? Offer Indeni to AVIC.
Chinese companies are more stable and geniune, but believe in bribing ministers. Ministers may not even need their bribes.
Don’t trust Russian companies.
UK companies might not be genuine. Just these Zambian ministers register in UK. No genuine UK company would be interested in Indeni’s crooked business.
Why didnt ZCCM IH bid. This in the only local company capable of running this strategic business on behalf of zambians. Ohh i firgot zambians are only interested in plot one.
What deliverables and/or derivatives does IDC wish to achieve for the people of Zambia?
All SOEs have been given away on account of inefficiencies [production + productivity] and thus loss making; Has Ministries tasked with the oversight function examined the root cause of these economic/enterprise outputs and or symptoms we judiciously use to ‘sell/give-away’ these investments?
I am not complaining but ENOUGH IS ENOUGH; we honestly need and urgently so CALL THIS COUNTRY TO ORDER!!! Talking and screaming blue-murder will not help the systematic financial hemorrhages our economy is forced to bleed out.
Hon Harry Kalaba [MP] where is your party we need to jump into the ring ASAP
Indeni’s current business model is not sustainable because it was initially built as a stop-gap measure for future scale up, therefore the acceptable RFP should include the scaling up to processing raw crude.
Alternatively, we could have floated shares to recapitalize and then hire an international team of consultants from the industry with wide expertise having an ultimate goal of not only incorporating their report in operations but also hiring some as part of the executive team at Indeni.
Let’s roll …
The shotlisting is fake. Two things will happen, 1. You will see a chines company awared, 2. Bokani Zulu from nowhere will be onsite because another invisible shortlisting is taking place at state house. That is where all crooks assemble to share Zambian contracts believe me. No Zambian on that list but there Bokani Zulu on Kaizer Zulu’s midnight shortlisting at state house.
I would bet my house that AVIC or atleast a Chinese firm will get it.
Its Christmas come early for corrupt ministers…time for brown envelopes!!
UMULEMBWE WA CIPUBA UWU PWILA MULI TUMFWE ZOONA; pleas take note:-
1. CHINA/SOEs: China Petroleum Technology & Development Corporation – CHINESE; Joint Stock Company Global Security – CHINESE/RUSSIAN, and Beijing Huiersanji Green Chem-Tech Corporation/AVIC International Corporation – CHINESE
2. UK/CROOKS: Sahara Energy Resources, and Glencore Energy; we recall the issues of BAD/FAKE JET.1 fuel discovered in June 2016, and the MOPANI MINES sagas of Tax Evasions, CEC Electricity Supply, threats to close the Mining Units etc
UBUNTUNGWA MU JAMBO-JAMBO, these are clear cut Anglo-American/UPND schemes shibukeni ba PF, its 10 – 0
If the Govt have senses in there heads then russian or british firm should get this one,but looking at the situation because someone wants kick backs the chinese firm called AVIC will definetly gets this one.
China is procuring all your strategic entities ….PF have already sold out and will get filthy rich from this tender sideshow from bribes.
God forbid if it is going to be similar to US$42 fire tenders; Avic is there too, wonder when they will declare interest since they now have a lot of contracts in Zambia.
Meant US$42 million
the chinese will get this one…why even announce
Just hand it to the Chines State Companies on that list…PF and Lazy Lungu are already in their pocket!!
Congratulations PF! The Tender and responses look genuine this time around. May the best company win.
after all PF is NOT chumbu munshololwa
Kanyama you as PF keep telling us how HH sold the mines now you are worse off than him, selling all our assets to foreigners at an alarming rate. We are in trouble that’s what happens voting for incompetent clueless individuals. We now spectators as we witness our country being auctioned off. All this interest in Indeni should make us not sell it, if these powerful companies see potential in it we should not sell it, we can simply pay them for their expertise and keep our assets
You will end up paying $10/ litre…watch this space in the future!!
Its like the sinner becomes worse than the devil!
I’m speechless!
its OBVIOUS AVIC consortium is winning the tender, can u clarify indeni produces 850,000tons per anus then consumption is 1.7billion litres per yr, the units are inconsistent , how many litres are in one ton of crude or fuel??
The new era of privatization is “silent privatization”, so the key is just to observe and see where it takes us.
Please spare us from the Chinese. The short listing is just procedure otherwise we all know the bid will go to Avic. Why cant we Zambians rise up reject this sale especially if it goes to China. I dont trust the Russians with sanctions and all coupled with Putins ruthelessness
introduce an Hydro-cracker so that we can process raw and very cheap crude oil from Angola! the current crude is very xpensive and has low Tar content for Bitumen production! The Bitumen plant is currently Idle, gvt shud work extra hard to ensure that it operational, this will reduce the cost of doing the ROADS as currently Bitumen is being imported form SA.
Close indeni and open up the market to anyone that wants to import fuel. Licence the importers, tax it at the border and be done with it. Indeni is 40 years old and hopelessly inefficient which means the only way to get an investor is for government to agree certain price points for fuel going forward. This means everyone has to pay more for their fuel to keep a rust bucket refinery running.
@richard, closing Indeni isnt that easy for gvt, one coz indeni supplies HFO (heavy fuel oil) to Ndola energy power plant. on importing of fuel, it shud never be given to private investors alone, coz if that happened ERB and Tazama wud be deemed redundant, erb wud not regulate fuel they have no control over, another thing is the oil marketing companies have a potential to create artificial shortage just to hold the gvt at ransom!!!! lets jst say fuel industry is like the defense wing which deserves the serious attention