…appeals to government to consider floating a tender for local oil companies to openly participate
THE Oil Marketing Companies Association of Zambia (OMCAZ) has commended government for suspending a contract awarded to Agro Fuel Investment Limited to import three consignments of low Sulphur Diesel at a contract sum of UA$210 million.
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The OMCAZ is also happy that while Agro Fuel Investment Limited is a local company, the government has awarded another local oil company, Devon Oil Zambia Limited, to use the converted TAZAMA Pipeline on a cheaper rate. They have also appealed to the government to consider floating a tender to other players for fair competition as opposed to single-sourcing.
Dr Kafula Mubanga, the president of the OMCAZ says his association was happy that government had listened to their appeal and suspended the contract and awarded it to another local oil company, Devon Oil Zambia which is going to import on a much cheaper rate than that prescribed by the Energy Regulation Board (ERB).
He has however requested government to float a tender so that more local companies could compete with instead of single-sourcing because such kind of procurement processes were offensive to the principles of fairness and competitiveness.
Speaking in an interview following the suspension of the Agro Fuel Investment contract, Dr Mubanga said OMCAZ did not want to see foreign oil companies taking control of Zambia’s gasoil stations and its Pipeline, TAZARA because indigenous Zambian players had the capacity to manage the Pipeline.
He said foreign oil companies were often in the habit of externalizing foreign exchange which had been the major contributing factor to the depreciation of the country’s local currency.
“We are happy that government has listened to our appeal and has suspended the contract awarded to Agro-Fuel and has awarded another of our local companies. We do not want one company to be controlling the TAZAMA Pipeline. We want empowerment to OMCs as a sector. Let there be a tender, let government give all local oil companies a chance to prove themselves by giving out slots.”
“Foreign multinational oil companies cannot be controlling our filing stations and our Pipeline. We do not want to see any multinational oil company getting preferences from government to monopolise the sector and if that is going to happen, we are going to protest. These multinational oil companies often externalize profits which is one of the reasons the Kwacha has been depreciating,” Dr Mubanga said.
Dr Mubanga said government should consider empowering local oil companied with capitalization, stating that the energy sector was one of the sectors that attracted the petrol-dollar system in the country.
He said government should ensure that the tendering process for oil companies to import low Sulphur Diesel should be transparent to avoid the temptation of players getting involved in corruption.
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