Zim okays US$1.3 billion fuel pipeline
Harare (New Ziana)- Zimbabwe on Wednesday approved four multi-billion dollar investment projects, including a new US$1.3 billion fuel pipeline from the Mozambican port of Beira to Harare.
Addressing a post-cabinet press conference on Wednesday, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said the approved projects would have a huge positive impact on the economy.
Among these were a vehicle parking management system partnership between the Bulawayo City Council and Tendy Three company, and the new fuel pipeline to be developed by the National Oil Company and Coven Energy.
Others were the establishment of a new 100 megawatt solar plant in Norton proposed by a Belarusian company at a cost of US$125.5 million and a mining joint venture between the Zimbabwe Mining Development Corporation and two foreign investors.
The mining foreign investors, Sim Sea and Honghua International, will invest US$20.25 in a venture to re-process dumps at Chidzikwe mine and resuscitate Angwa Shaft.
The biggest of the four projects, the fuel pipeline deal, will transform the country into a regional oil hub, serving South Africa, Botswana and Zambia among other countries.
It will be built over four years, and complement the existing Feruka pipeline.
The solar project, the latest of many that have been clinched with foreign investors in recent years, will help ensure the country attains self sufficiency in power.
At the moment, Zimbabwe has a power generation deficit which frequently leads to electricity rationing.
Mutsvangwa said the solar power deal is only awaiting a taxation agreement between Belarus and Zimbabwe to be signed.
“The renewable energy project will be implemented on a 25-year Independent Power Producer basis, and will involve a Power Purchase Agreement with the Zimbabwe Electricity Transmission and Distribution Company.
“The power generated by the plant will be fed onto the national grid and complement power generated by the Thermal Power Plants. Land for the project has since been identified in Norton,”she said.
On the other hand, the mining venture is expected to create 500 jobs, and earn the country significant revenues.
“SIM SEA Investments and Honghua International will inject capital amounting to US$20.25 million dollars which will cover the procurement of plant and equipment for dump re-treatment and shaft resuscitation.
“The project will create 500 jobs for locals, and Zimbabwe will benefit from technology transfer and US$200 million in foreign currency generation over ten years,” said Mutsvangwa.