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Malawi Govt. seeks investor for con-struction of Beira-Nsanje oil pipeline

February 25, 2022 / Bester Kayaye
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The Malawi Government is scouting for a strategic investor to construct the Beira-Nsanje oil pipeline based on the Build, Own, Operate and Transfer (BOOT) arrangement.


Spokesperson for the Ministry of Energy Upile Kamoto explained that Government is failing to execute the proposed multi-million kwacha project, which has been on the cards for a long time, due to lack of funds.


Once completed the project is envisioned to aid in reducing landing costs of fuel into the country, apart from securing adequate fuel supplies.

Kamoto said; “The project is still on the cards. It seeks to construct a petroleum fuels transportation pipeline either from Beira to Nsanje or from Beira to Blantyre. Due to limited government finances, the preference is to engage a private company on Build Own Operate and Transfer (BOOT) arrangement.”


“The project is envisaged to improve cost, safety and reliability of transportation of petroleum fuels and hence improve on fuel security in Malawi.”


She said currently the project is at a stage where the government is looking for funds to conduct feasibility studies including possibilities of securing an investor who will do all the feasibility studies and develop the project under BOOT arrangement.


Kamoto, however, said there are no tangible timelines for the project due to unavailability of funds
“Since there are no funds yet for feasibility studies and its development, no tangible timelines are there yet for the project and the project cost will only be arrived at when the full feasibility study has been carried out,” she said.


Currently, National Oil Company of Malawi (NOCMA) has the capacity to keep 60 days of fuel for the country in its reserves with plans underway to increase to possibly 180 days.

Malawi hauls fuel imports from the ports of Nacala and Beira in Mozammbique and Dar es Salaam in Tanzania mainly through road transport.


Meanwhile, NOCMA is working on increasing fuel imports through rail, which is a cheaper means of transport compared to road haulage.

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