Nocma seeks investors for Mchinji fuel depot

Post was last updated: June 28, 2018


The National Oil Company of Malawi (Nocma) has said it is yet to identify an investor for its fuel depots in Mchinji.

Nocma’s Communications Officer, Telephorus Chigwenembe, said contractual issues have delayed the operationalisation of the Mchinji and Chipoka depot in Salima.

Chigwenembe said Nocma’s depot at Chilumba in Karonga is currently up and running.

The decision to put the three facilities in the hands of private investors was made to allow Nocma to focus its business on the management of the strategic fuel reserves in Blantyre, Lilongwe and Mzuzu which provide Malawi a two-month fuel cover.

Chigwenembe said, although an investor to run the Chipoka fuel depot has already been identified, a contract is yet to be finalised.

“In view of the operationalisation of the 60-million litre strategic fuel reserves (Blantyre, Lilongwe and Mzuzu combined), a decision was made to let Chipoka and Mchinji be operated by other players through a concession arrangement under Public Private Partnership (PPP).

“As for Mchinji depot, several investors have expressed interest to operate the facility and internal processes are underway to identify a successful bidder and to determine the way forward,” Chigwenembe explained.

He said the contracts with successful bidders would include information regarding refurbishment of the depots.

“As for Chilumba depot—which is operational at the moment—we are also considering letting others manage the facilities under a concession arrangement. Again, this is yet to be concretised,” Chigwenembe said.

The idea to establish Nocma and strategic fuel reserves was hatched after the Malawi economy, in 2011, nearly nosedived in the aftermath of a serious fuel crisis.

Let us know what you think of this update and remember to add us on our facebook and follow us on our twitter. Make sure to come back daily for more Malawi business news updates.

Quick Links: Malawi Banking News | Malawi Technology News | Download Business eBooks | Ten Signs You Are An Entrepreneur | What is a Managing Director?

Today’s top business story: Top Commercial Banks In Malawi

Source link