Francistown oil storage facility to cost P600m
Isaac Pinielo | Wednesday June 14, 2017 18:00
Addressing the 14th edition of the Botswana Resource Sector conference in Gaborone this week, the Minister of Mineral Resources, Green Technology and Energy Security, Sadique Kebonang said BOL is working on the funding model for the Francistown facility whose construction will be followed by another facility in Gantsi.
“We are currently working on the funding models for the infrastructure with the Francistown one estimated to cost about P600 million. There are also plans to build a pipeline from South Africa to Botswana. All these are opportunities for banks to fund these projects,” he told delegates.
The Francistown expansion project aims to deliver an additional 60 million litres to the current 30 million litres capacity. BOL recently told Mmegi Business that they had appointed an Engineering Procurement Construction Management contractor in August 2016 for the project.
“To date, concept designs have been completed and work is progressing on the detailed engineering designs. The scheduled completion date for the depot is November 2018.
The Ghanzi project is yet to commence. Land for the planned depot has already been identified,” said BOL. In a bid to diversify oil imports routes, the state-owned oil company also said engagements with the National Oil Company of Namibia and prospective investors on coastal storage are ongoing.
BOL is also considering securing coastal storage facilities in Mozambique and South Africa. “In the interim, BOL has stored petroleum products in Matola, Mozambique as part of security of supply and the development of alternative routes and source,” said the company.
Developments have also been made on the construction of the much-anticipated 160 million-litre Tshele hills oil storage facility in Kgatleng. According BOL’s chief executive officer, Willie Mokgatlhe, construction of the access road and the road over the rail bridge is now complete.
“So far construction of the access road and the road over the rail bridge is complete. Other aspects of the project including the construction of the tank farm and associated works as well as housing and buildings has temporarily been put on hold as funding for these projects is still being sourced.
It is anticipated that construction will commence in the near future,” he said.
The project is being implemented by the Department of Energy in the Ministry of Mineral Resources, Green Technology and Energy Security.
The project, which has been on the pipeline for sometime, was initially divided into two phases, which comprised the construction of the tank farm and staff housing while the second phase would include infrastructure including power connection, fencing, water and a road as well as rail spur.