By Bisola Adeyemo
Zimbabwe and a British firm, Coven Energy have agreed on $1.3 billion (R19 billion) deal to develop a fuel pipeline from the Mozambican port city of Beira to the capital city Harare.
The minister of information, Publicity and Broadcasting Services in Zimbabwe, Monica Mutsvangwa.
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Who revealed this on Wednesday said the pipeline would complement the existing one that also links Harare and Beira and make landlocked Zimbabwe a fuel hub for the southern Africa region, News 24 reports.
“The pipeline will be built over four years at an estimated cost of $1.3 billion. The partnership will be for a period of 30 years,” Mutsvangwa said during a post-Cabinet briefing.
Unlisted Coven Energy will form a 50-50 joint venture company with state-owned National Oil and Infrastructure Company, Mutsvangwa said.
Zimbabwe has struggled with acute shortages of fuel due to perennial shortages of foreign exchange but supplies have improved in recent months after the government allowed companies to sell the commodity in U.S. dollars.
