Thursday, January 17, 2008
By Kabanda Chulu
Thursday January 17, 2008 [03:00]
THE government has selected Stanbic Bank as the preferred bidder to provide funding worth US$1.2 billion for the supply of 1.4 million metric tonnes of commingled petroleum feedstock that will be delivered by Independent Petroleum Group (IPG) of Kuwait.
Last week, Ministry of Energy Permanent Secretary Peter Mumba, announced that Finance Bank and Stanbic Bank had submitted bids to the Zambia National Tender Board (ZNTB) for the provision of funding for the two-year contract government signed with the IPG for the supply and delivery of 1.4 million metric tonnes of commingled petroleum feedstock.
ZNTB acting director general James Njolomba yesterday said the government through the Ministry of Energy and Water Development requested ZNTB to conduct the tender process, which was done and the bids were sent to the ministry for evaluation.
He said after the bids were brought back for thorough analysis, the ZNTB central tender committee (CTC) finally settled for the bid submitted by Stanbic Bank and the government would soon sign a contract with the bank to outline the modalities of the funding procedure.
"Everything which the government requested for has been done and the ministry will soon sign a contract with Stanbic Bank with a view to provide funding for the recently signed long term contract for the supply and delivery of crude oil,” said Njolomba.
Recently Zambia Association of Chambers of Commerce and Industry (ZACCI) chairman Hanson Sindowe urged the government to ensure reliable and transparent funding for crude oil in order to remove the hand to mouth fuel arrangement that has been prevailing in the country.
And ENFIN solutions managing consultant, Andrew Kamanga, said having a long term fixed contract would help to guarantee security of supply thereby doing away with shortages of the commodity.