Government approves partnership Projects

Staff Reporter
GOVERNMENT has approved the proposed partnership between National Oil Company of Zimbabwe and COVEN Energy Ltd. to develop a second petroleum products pipeline in country, cabinet reported yesterday.
This is one of the four Investment Projects which were presented by the Ministry of Finance and Economic Development.
The projects were tabled by Hon. Prof. Mthuli Ncube, as Chairman of the Public Private Partnerships (PPP) Committee.
The joint venture project between the National Oil Infrastructure Company of Zimbabwe (Pvt.) Ltd and Coven Energy Limited is for purposes of developing and operating a second pipeline from Beira to Harare.
Cabinet said the objective is 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.
The Project will result in the National Oil Infrastructure Company of Zimbabwe (Pvt.) Ltd and Coven Energy Ltd entering into a 50:50 Public-Private Partnership.
“The project will create employment opportunities as well as generate foreign currency for the country. It will also help reduce vehicular congestion and the smuggling of petroleum products. The pipeline will be built over 4 years, at an estimated cost of US$1.3 billion,” Publicity and Broadcasting Services Minister Monica Mutsvangwa said yesterday.
“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. The feasibility study would subsequently inform Government on the way forward.”
This comes a day after the President Mnangagwa said Government’s economic reform programme which is guided by National Development Strategy-1 was bearing fruits, with a projected economic growth of 7,8 percent as more resources are being channelled towards infrastructure development and rehabilitation.
The other projects approved are:

• Proposed Partnership between Bulawayo City Council and Tendy Three (Pvt.) Ltd. on the Bulawayo Vehicle Parking Management System Project;
• Proposal for Investment by a Belarusian Independent Power Producer in a 100 MW Solar Energy Plant.
• 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.
  These multi-billion projects are part of the developments by government through the country’s socio-economic sectors aimed at achieving Zimbabwe’s vision to become an upper middle-class economy by 2030.