(HERALD) Zim to get US$1,5bn oil refinery
Zim to get US$1,5bn oil refineryReuters-Herald Reporter.
Qatar-based firm funding project A QATAR company will invest around US$1,5 billion in Zimbabwe to build an oil refinery, in a show of confidence in the country’s economic potential. Venessia Petroleum is run by a member of Qatar’s ruling family and says it has confidence in Zimbabwe despite the current problems.
It plans to build a 120 000 barrels-per-day refinery in Harare, while its sister company will develop a five-star hotel in Harare, the company’s general manager Mr Jawhar Zaidi said on Monday. Government adopted a Look East policy to increase political and economic co-operation with friendly countries in the Far East and Middle East after Western countries led by Britain and the United States slapped Zimbabwe with illegal economic sanctions.
The blockade — which has hurt the economy and ordinary people — was the West’s way of opposing Zimbabwe’s land reform programme meant to empower the majority.
"We have been in the region for a while and we’re not worried about the political situation," Mr Zaidi told Reuters by telephone from Doha.
Consultants would start designing the refinery, costing as much as US$1,5 billion, by the end of the year once a feasibility study was completed, he said.
"We would look to import crude from Qatar or another Middle Eastern country," Mr Zaidi said.
Qatar has the world’s third largest natural gas reserves and is a member of the Organisation of Petroleum Exporting Countries. Venessia Petroleum is chaired by Abdulaziz Bin Mohammad Bin Jabor al-Thani, a member of Qatar’s ruling family, Mr Zaidi said.
The company, which operates overseas as Venessia General Trading, was set up as part of the government’s plans to help develop Qatar’s energy sector, according to Venessia’s website. Venessia General Trading is also investing in hotels and oil storage facilities in Malawi, Mr Zaidi said.
The company has permission to build a five-star hotel in Harare for about US$136 million, he said.
It has agreed a joint venture with the Harare City Council to establish a hotel and casino business in the capital.
A full council meeting heard last week that Harare would provide the land to build the hotel and technical expertise while the Qatar firm would chip in with money.
The Government has in the past two years signed deals with countries such as China and Iran to invest in areas including mining, agriculture and engineering.
In June Lonrho Africa plc announced a £100 million fund to finance companies and individuals intending to invest in Zimbabwe. The investment vehicle, called LonZim, will raise the money on the London Stock Exchange.
Commenting on the investment vehicle, Lonrho Africa executive Mr David Lenigas said Zimbabwe was ripe for investment and discerning investors should move in now since the country’s problems are bound to end at some point. — Reuters-Herald Reporter.
Labels: FDI, FUEL, JOINT VENTURES, ZIMBABWE
posted by MrK @ 4:46 AM
2 Comments:
Something tells me LonRho is not part of this deal. :)
And the story is also listed here.
Wouldn't it be ironic, that after all it's tribulations, Zimbabwe was the one country in Africa to get foreign direct investment right by insisting on joint ventures? :)
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