CANCEL TAZAMA DEAL
… as Indeni is capable of refurbishing pipeline
GOVERNMENT should cancel the contract to outsource refurbishing the Tazama Pipeline because Indeni is capable of undertaking the task and saving the country millions of dollars, former Economics Association of Zambia (EAZ) president Lubinda Haabazoka, has said.
Dr Haabazoka has also asked Government to explain what would happen to the US$90 million comingled oil that was still in the pipeline.
Recently, Government awarded a tender to Agro Fuel Investment Limited to clear the 1, 700-kilometre TAZAMA Pipeline.
The government also awarded Agro Fuel Investment Limited a contract to supply and deliver 100, 000 MT of Low Sulphur Gas Oil (LSG) and 15, 000 MT of kerosene for the TAZAMA Pipeline conversion project.
But Dr Haabazoka said Government needed to reconsider this contract because Indeni had the capacity to deal with the matter rather than spending millions of dollars.
“For me, I do not see the need for Government to outsource because Indeni can do this job therefore saving millions in the process,” Dr Haabazoka said.
Meanwhile, Dr Haabazoka said that government needed to mitigate the current looming fuel shortage due to the high transportation fees from Beira to Zambia.
He said that the country would continue grappling with fuel shortages because the transportation of fuel was not cheap.
Dr Haabazoka said thecountry needed to come up with strategies like signing Government to Government deals with oil supplying countries to ease the burden.
He said this would be the only mitigating factor to the looming fuel shortage in the country.