National Energy Fund to Pay for N$4 Billion Oil Facility

THE National Energy Fund will be used to fund construction of the bulk fuel storage facility at Walvis Bay, Minister of Mines and Energy Isak Katali said in an interview yesterday.

“We are still discussing how the project will be funded we are looking at options but basically the funds will come from the levy under the National Energy Fund,” he said.

Katali added that the government was working out ‘modalities’ how the companies that will construct the facility will be paid and how the money will be drawn from the Fund.

The facility is expected to ensure security of supply in the local oil market during hard times.

Katali could not say when a final decision on the funding structure will be finalised.

Asked whether National Petroleum Corporation of Namibia (Namcor) will be given back the mandate to import 50% of the country’s fuel requirements, Katali said he was waiting for Namcor to come back to him with a business plan how they are going to do it.

“I will give it back to them when they are ready,” Katali said.

Last week, the Namibia Press Agency reported that a joint venture between the Roads Contractor Company (RCC) and China Harbour Construction Engineering Company has been awarded the tender for the construction of the facility.

Namcor MD, Obeth Kandjoze told Nampa that the more than N$4 billion tender had been awarded to RCC and the Chinese firm.

According to the tender documents released last year, the proposed bulk fuel storage facility will consist of ten different storage tanks. The facility will be able to store 118 000 square meters of five different products and provision is made to expand the storage capacity of the facility up to 238 000 square meters.

The facility will have a throughput capacity of at least 520 000 square meters per year to either road loading or rail loading.

According to the documents, the throughput capacity will be more if both road loading and rail loading are used simultaneously.

At present, Namibia’s fuel reserves can only last for two weeks but with the storage facility, the stocks will be able to last longer.

Source : The Namibian