Zambian gov't to partner with private sector in managing fuel reserves

Zambian Energy Minister Felix Mutati has said the government will partner with the private sector in managing fuel reserves, local newspaper The Post reported Thursday.

Minister Mutati said here Wednesday that a technical audit of Indeni Petroleum Refinery has been received and the government could not wait for legislation to facilitate the establishment of government-managed reserves, which was anticipated by June this year.

He said due to the energy crisis last year, it is critical to move on the reserves now.

Mutati said that his ministry has asked for 50 billion kwacha ( about 15 million U.S. dollars) to start the process of establishing fuel reserves, but it would not be met because of other financial problems the country is facing.

"Under this model, we shall factor a small amount into the fuel prices to give a return for investors who will participate in this venture," he said.

"We want to support business. So we shall give oil marketing companies an incentive that will make them opt to pump their money into the fuel reserves than keep it in the bank," he said.

Indeni, the only refinery corporation in Zambia, is jointly owned by the government and Total on a 50-50 split with the latter in charge of management.

The government adopted the national oil reserve strategy after the oil crisis last year.

Source: Xinhua