If all goes well, Namibia will supply Zambia with more than 100 000 barrels per day through a 2 000km pipeline that runs from Walvis Bay to Lusaka.
Yesterday’s signing of an agreement on Cooperation in Facilitating Private-Sector Development and the Implementation of an Oil Products and Natural Gas Pipeline Project (Nazop), launched the plan.
The two countries’ energy ministers officiated the ceremony at Swakopmund on the last day 10th session of Namibia-Zambia’s joint permanent commission of cooperation.
Peter Kapala, Zambia’s energy minister, stated that the agreement’s primary goal is to improve economic cooperation between the governments in the energy sector.
“Petroleum and its derivatives are driving engines of growth and development of our economies, especially considering the logistics and transport industry,” he said.
He stated that the two governments will work together with their private partners to assess the feasibility and cost of the project in order to secure financing.
These will be followed up by assessments of the environmental and social impacts.
“Given the volatility of oil prices, we need to take advantage of the means to reduce the cost of delivering petroleum products to our people.
“Our two countries have achieved this milestone to partner on the development of such a key infrastructure,” Kapala said.
Tom Alweendo from Namibia’s ministry of mines, energy and environment said the agreement allows both governments to facilitate private sector participation in the construction of the pipeline.
He said that the agreement with Zambia could be used as a basis to extend the supply line to other countries within the region, with particular mention of the Democratic Republic of Congo.
“This project will be a great example of the vision of cooperation in the region, and the agreement is a great example of how we live up to this vision,” he said.
Alweendo stated that 600 million Africans do not have electricity and that gas will be the largest source of energy in Africa for the next few decades. The right infrastructure is needed to ensure that the resource is distributed.
“This is the best way to unlock the potential of this resource value to the region,” he said.
The minister reiterated the importance of the relationships between the public-private sectors in the realization and implementation of the initiative.
“The agreement makes provision for a joint technical committee that will be responsible to work with the private sector in identifying the exact assistance that will be needed. Although this project is private sector-led, both governments recognize that strong private-sector participation will help our economies grow and industrialise faster.
“We also understand that our economies will flourish when there is collaboration between the government and the private sector,” Alweendo said.
Netumbo Nandi Ndaitwah, Deputy Prime Minister and Minister of International Relations and Cooperation, stated that the success of the cooperation should be measured not by the number of agreements signed but rather their implementation and impact upon the lives of citizens.
Source: namibian
