TAZAMA Open Access tender cancelled

By NATION REPORTER

GOVERNMENT has cancelled the Open Access Prequalification process for 21 oil marketing companies (OMCs) that had been cleared to supply Low Sulphur Gas Oil through the TAZAMA Pipeline for the July to December 2025 cycle, sparking fears that ggovernment would be reverting to single-sourcing, that had previously been the reason for high pump prices of petroleum products.
The decision was jointly announced by the Ministry of Energy and TAZAMA Pipelines Limited, who haveadvised all affected companies to await a new call for prequalification, which will be advertised in due course.
“It is not clear whether the decision shall guarantee price stability, national fuel security, or supports competitive public procurement,” the source said. “If anything, it raises fears of reverting to single sourcing, which the government previously moved away from in favour of private sector participation,” one of the affected players said.
“How does the cancellation serve national interest, and who benefits from it? That’s the core question. We need clarity—are we protecting some interests at the expense of others?” the player wondered.
The companies that have already made payments and wish to participate in the next round have been advised to express their interest in writing once the new advertisement is issued.
“Bidders who do not intend to participate in the next prequalification exercise are advised to submit refund requests to the TAZAMA Procurement Office,” reads part of the statement.
The Ministry has also provided an official point of contact for clarifications, refund requests, and individual performance debriefs.
Efforts to get Makozo Chikote, the Energy Minister proved futile as his mobile phone went unanswered. A text message sent to his phone was equally not responded to by press time.
The cancellation comes shortly after a comprehensive evaluation process had been concluded for the earlier invitation issued on April 16, 2025, which closed on June 19 and thehre are concerns that the decision may have been influenced by some cartels in the sector.
A total of 21 OMCs had been listed as prequalified suppliers of diesel under the Open Access framework, among them both local and international players operating under various joint ventures.
Some of the firms affected include Edenvale Investments and Sahara Resources JV, Puma Energy Zambia, Indeni Energy Company Limited, Petroda Zambia, Mount Meru Zambia, and Oryx Energies Zambia.
Others are Agro-Fuel Investments limited/Vittol Bahrain JV, Quick Leading Logistics Limited, Jayden Oils and Kaskara Commodities JV.
TAZAMA has further advised that OMCs that wish to appeal the cancellation or their evaluation outcome would have do so within five working days of the public notice, in line with the Open Access Guidelines available on the official websites of TAZAMA and the Ministry of Energy.
The Open Access model was designed to liberalize fuel importation and distribution, allowing multiple players to participate in the use of TAZAMA, the national pipeline infrastructure. However, it has also faced challenges related to transparency, capacity, and regulatory policy consistency, with some players fearing that the cancellation was meant to revert to single-sourcing of prefered companies, which the International Monitory Fund (IMF) had advised against.
The players have complained that the move was likely to impact planning for fuel suppliers and retailers during the second half of the year, as the market awaits a fresh round of prequalification and procurement procedures.
Meanwhile, questions have swirled over the cancellation of the Open Access Prequalification, sparking fresh concerns over transparency, policy consistency, and national fuel security.
Industry insiders, who requested anonymity but acknowledged prior knowledge of the looming cancellation, said the decision might be part of a broader strategy to restructure the fuel supply chain—but warned that such a policy shift, if not clearly communicated, risked disrupting the stability of supply.
The cancellation affects a wide range of firms that had already been cleared to operate, including Puma Energy Zambia, Indeni Energy Company, Petroda Zambia, Mount Meru, and several others operating under local and regional joint ventures.
“This decision doesn’t just affect oil marketers. It impacts haulage firms, retailers, fuel stations, and ultimately every consumer and business relying on a stable fuel market,” the insider emphasized. “If we’re shifting back to a centralised or politically influenced supply model, then that should worry anyone concerned with economic development and private sector growth.”