Maravi

World Bank withdraws funding for TAZAMA pipelines rehab

World Bank withdraws funding for TAZAMA pipelines rehab
Written by Kabanda Chulu
Thursday, June 25, 2009 3:25:27 PM

ENERGY permanent secretary Peter Mumba has said rehabilitation of the TAZAMA pipelines has delayed because the World Bank and the EIB have withdrawn their funding as a result of Zambiaís inability to meet certain conditionalities.
And Mumba has said the government could not implement uniform petroleum prices countrywide due to lack of bulk storage facilities in provincial centres.

Appearing before the Parliamentary Committee on Government Assurances, Mumba said the government acquired a loan amounting to US $22 million from the World Bank and US $20 million from the European Investment Bank (EIB) for use on the rehabilitation of the TAZAMA pipelines.

He said some of the funds were disbursed and works were carried out.

“However, the rehabilitation works could not be completed due to the fact that the financiers withdrew their funding as a result of Zambiaís inability to meet certain World Bank conditionalities. At the time of cancellation, 21 per cent of the funds from the World Bank were utilised and 87 per cent from the EIB and due to this development, TAZAMA has resorted to carrying out rehabilitation works using its own resources,” Mumba said. ìSo far major portions of the pipeline including pumping stations have been worked on. However, a stretch of about 10 kilometres of pipeline on the Tanzanian side still needs to be replaced and new pipes have already been procured for this purpose.”

On strategic oil reserves, Mumba said the government had provided US $2.3 million for the completion of the 40,000 metric tonne diesel tank at Bwana Mkubwa in Ndola whose works were suspended when the donors withdrew funding under the petroleum rehabilitation project.

Mumba further said the government had failed to implement the programme due to lack of bulk fuel storage facilities in provincial centres.

“Transportation and storage of petroleum products in bulk has the potential to contribute to the reduction of the logistical cost and therefore the pump price of fuel products in the outlying areas. To this effect, government recognises the need to rehabilitate the existing bulk fuel depots in provincial centres and the first phase of rehabilitation after tender processes will start with Lusaka, Mongu and Solwezi depots,” said Mumba.

Labels: EIB, TAZAMA, World Bank

posted by MrK @ 2:25 PM