Africa-Press – Botswana. Acting President, Mr Slumber Tsogwane has allayed fears that, acute limited fuel storage could pose a risk to the country’s sustainable development.
Officiating at Ghanzi fuel depot ground breaking ceremony at Chobokwane on December 16, he said the National Energy Policy indicated that Botswana was completely reliant on imports of refined petroleum products from neighbouring countries mostly, South Africa.
“The over-reliance on a single source and a single route could pose a high risk to the security of fuel supply as it has been witnessed in the past, when there was prolonged fuel supply shortage”, he said.
Mr Tsogwane said the National Vision 2036 sought to achieve prosperity for all, in the context of transitioning to a high income economic status hence the need to recognise the sustainable environment pillar that identified energy security as one of the critical components essential for socio-economic development.
He said the construction of a P1 billion infrastructure with a carrying capacity of 60 million litres would enhance local fuel availability, affordability, accessibility and reliability.
He applauded Botswana Oil Limited (BOL) on its 10th year anniversary for demonstrating tenacity and ability to deliver on major key strategic government projects that would effectively manage fuel supply in the country to drive economic activities.
He explained that the strategic storage capacity for liquids stood at approximately 18 days of national consumption against the international standard for strategic storage capacity of 90 days.
Mr Tsogwane mentioned that commercial buffer stock currently stood at less than five days of national consumption against the preferred minimum of 14 days.
He indicated that with Ghanzi fuel depot government was seeking to reach the 90 days mark.
The Acting President further applauded BOL for fostering partnerships to launch Citizen Empowerment Programme (CEEP) that he said would support the entry of citizen owned oil companies.
He implored citizen-owned companies, to ensure compliance with requisite standards and requirements for transporting fuel for effective and efficient deliveries in a safe and sustainable manner.
Additionally, he said construction of the facility would open up opportunities for employment within Ghanzi and surrounding areas as it was anticipated to create 400 jobs during construction phase and about 15 more at the time of commencement of the operations of the depot.
He implored communities to consider the opportunity as a gateway to venture into businesses that complemented the ecosystem of economic growth in Ghanzi District.
Giving the background to the project, BOL chief executive officer, Mr Meshack Tshekedi said the facility was strategically located along the Trans Kalahari highway on the Mamuno border route 45km of Ghanzi and 30km from Chobokwane.
He said the organisation was targeting the western part, which contributed 10-30 per cent of the total volume of fuel imported into the country.
The infrastructure development, he said comprised construction of a 60 million litre bulk petroleum storage depot, administration offices, staff houses, road loading and off-loading gantries, a tank farm and other associated infrastructure investment worth P1 billion.
He said the project was anticipated to be completed after 12 months with a minimum expectancy of 50 years once the depot was operational.
Mr Tshekedi said the project, procured through Public Procurement Regulatory Authority, comprised four phases and some components would be awarded to citizens’ contractors.
He said contractor one would be for civil and building works that had been awarded to 100 per cent citizen contractor, Estate construction at the value of P183 million.
The commencement period is scheduled for January 2024 and the project is expected to complete by September 2024
Contractor two would focus on tanks fabrication and erection works, which he said was at adjudication stage and upon completion, the works would take nine months and a special scope for subcontracting to citizens would be mandatory.
The third contractor’s scope of work would entail electrical and instrumentation works, which Mr Tshekedi said was under procurement and was to be done by March 2024 with works expected to be completed by December 2024.
He said mandatory subcontracting to citizen owned companies was to the maximum of 40 per cent and provision of services like drilling of boreholes were completed by Tlou drilling while power would be sourced from Botswana Corporation.
Mr Tshekedi said BOL was committed to ensuring successful delivery of projects through constant monitoring.
In his welcome remarks, Kgosi Willy Morris, applauded government for delivering on national projects through which he anticipated more economic activities that would uplift communities’ livelihoods.
Member of Parliament for Ghanzi South, Mr Motsamai Motsamai, applauded BOL’s efforts to improve the country’s capacity on energy security.
He said the project would create employment opportunities for locals and boost the economic status of the district.
In closing, Minister of Minerals and Energy, Mr Lefoko Moagi applauded President, Dr Mokgweetsi Masisi for his visionary leadership to transform the country’s economy into a high income status.
He implored stakeholders to align their goals and objectives with the government aspirations towards achieving Vision 2036. He cautioned contractors against delays, urging them to deliver projects on time, within scope and within budget.
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