Maravi

PTA Bank plans funding of crude oil delivery

PTA Bank plans funding of crude oil delivery
By Kabanda Chulu
Wednesday May 07, 2008 [04:00]

ENERGY Permanent Secretary Peter Mumba has said PTA Bank will release US $90 million to fund the consignment of 90,000 metric tonnes of crude oil to be delivered next week. And making submissions to the parliamentary committee on government assurances that was chaired by Mwense member of Parliament Jacob Chongo on Monday, Mumba said the government would need US $350 million to complete the rural electrification project by the year 2030.

In an interview, Mumba said the government was still talking to several banks in order to find a financier for the 1.4 million metric tonnes of commingled petroleum feedstock that would be supplied and delivered by the Independent Petroleum Group (IPG) of Kuwait over the next two years.

“It is a pity we could not sign a deal with Stanbic and we do not want to experience another prolonged negotiation hence we are talking to Zambia National Commercial Bank, Finance Bank, Citibank and PTA Bank with a view to select one, hopefully by this month end because we want to have reliable financing for the entire two-year crude oil supply contract,” Mumba said. “But for the 90,000 metric tonnes to be delivered next week, PTA Bank has agreed to issue a letter of credit worth US $90 million.”

In his submissions, Mumba said the government had identified 1,216 rural growth centres that requited to be electrified by 2030 at a cost of US $ 15 million annually.
He explained that power would be installed at rural growth centres such as schools and clinics first before connecting other areas.

And Mumba said the project to divert water from Luapula into the Kafue River was no longer a priority because effects of droughts had minimised in Southern Province and the diversion would affect the many developmental projects lined up for Luapula Province.

Labels: ENERGY, OIL, PTA BANK

posted by MrK @ 6:03 AM