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Govt explores using TAZAMA as common carrier of products

Govt explores using TAZAMA as common carrier of products
By Chiwoyu Sinyangwe
Wed 14 July 2010, 15:00 CAT

GOVERNMENT is in the process of commissioning a study to explore the feasibility of using the TAZAMA pipeline as a common carrier of finished products, Zambia Development Agency (ZDA) communications manager Margaret Chimanse has said.

TAZAMA is 66.7 per cent owned by Zambia while Tanzania returns 33.3 per cent in one of Africa's most important crude oil pipeline which stretches for about 1,710 km and currently transporting approximately 600,000 metric tonnes of crude oil per annum.

Giving a status report on the privatisation process, Chimanse, in an interview, said the future of TAZAMA was currently being decided by the Ministry of Finance.

“The Public Private Partnership PPP unit at Ministry of Finance and National Planning is in the process of commissioning study to explore feasibility of using the pipeline as a common carrier of finished petroleum products,” Chimanse said.

On companies that were planned to be sold, Chimanse said ZDA was exploring options for privatisation of the troubled Contract Haulage. Chimanse said the ZDA had completed asset valuation on DGH Polyproducts and that the company valuation was to be finalised by end of last month for advertisement after requisite approvals as at last May.

And Cabinet has approved the sale of 51 per cent of its shares in Mukuba Hotel and ZDA was exploring options for developing and rebranding the Hotel, according to Chimanse.

She also said the possible sale of Ndola Lime was not immediately on the table as the company was sourcing for finance to replace the old kiln and the hydrator.

“The funding is coming from DBSA and Afri Exim Bank,” she said.

On Kariba Minerals Limited, Chimanse said the company valuation was expected to be completed by last month and the government shares of Kariba Minerals Limited to be offered for sale.

The other companies being considered for options for private sector participation by the government included Nitrogen Chemicals of Zambia, Mulobezi Railway, Tanzania Zambia Railway Authority (TAZARA) and Zambia National Building Society.

She said the government was in the process of examining the business model for Zesco while ZDA and ZSIC management were studying options for recapitalisation of the giant insurance firm.

Chimanse further said ZDA was currently studying options for commercialising Zambia National Building Society and Zampost./JC/FM

Labels: MARGARET CHIMANSE, RAIL, TAZAMA

posted by MrK @ 10:54 PM