adminconduit, opting for road transport.
The 287km-long pipeline stretches from Beira in Mozambique to Feruka Oil Refinery outside Mutare and has capacity to pump 1,2 billion litres of fuel per day.
The Government owns 21 kilometres of the pipeline while the Mozambican government through its company, Companhiado Pipeline Mozambique-Zimbabwe, controls the rest.
Energy and Power Development Minister Elton Mangoma said Government had taken this stance because importers were not utilising the pipeline fully.
“As far as we are concerned we do not intend to put any resources there,” he said.
“Fuel importers have not been utilising the pipeline so it will be counter-productive for us to invest in its refurbishment,” he added.
Minister Mangoma, however, said Government would welcome private investors willing to invest in the project.
“If there is a third party willing to do that maybe they can come in but Government will not,” he said.
The Government, in January this year, introduced a US$0,04 per litre levy on fuel importers using road transport to bring fuel into the country in an effort to induce them to use the Beira-Feruka pipeline.
However, the move has not produced the desired results as fuel companies have continued shunning the pipeline.
Low water levels at Beira sometimes prevent ships from docking, causing delays in movement of fuel, resulting in private players preferring to use road transport.
Zimbabwe pays rent for using the pipeline, which is underutilised. – New Ziana.
Online Reporter