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The Agricultural and Rural Development Authority and Rating and Macdom Investments own Green Fuel in Chisumbanje, which produces ethanol for petrol blending.
Agriculture, Mechanisation and Irrigation Development Minister Joseph Made said on Monday the committee was tasked to engage a private consultant to look into various issues surrounding the ownership transformation.
“Cabinet has directed the committee of ministers to engage a private consultant. The findings and recommendations of the private consultant will then inform the negotiators with a view to transforming the project into a joint agreement,” said Minister Made.
Earlier reports suggested that Government had taken over Green Fuel, when it had only initiated the process of transforming the BOT into a joint venture. Minister Made said Cabinet’s position on the BOT signed between Arda and its partners was that it was “null and void”, adding that it “was not approved by Government through Cabinet”.
“Cabinet preferred that the project be a joint venture agreement, whose shareholding should comply with the country’s Indigenisation and Empowerment Act,” he said.
Minister Made said Cabinet resolved that Green Fuel should be allowed to market its products, which include E10, E20, E85 and E100, on an optional basis.
“There will be no mandatory blending of fuel,” he said.
The company has been pushing for mandatory blending that would compel all motorists to use fuel blended with ethanol.
Minister Made, however, said Green Fuel was given the right to export excess ethanol without hindrance and restrictions and that guarantees be given to the quantities to be exported.
After the new agreement, Green Fuel will be owned according to the country’s indigenisation laws.
Zimbabwe is reportedly forking out $50 million a month on petrol and if Government had introduced mandatory blending, the firm argues that it could immediately save $40 000 a day. The figure to be saved would increase to $700 000 a day within three months.
Online Reporter