São Paulo – The Mozambican government and the chairman of Saudi Arabia’s Radyolla Holding, Abdul Aziz, signed a memorandum of understanding last Wednesday (30th) to build a refinery and an oil pipeline in the African country. The project has existed since 2008, but had been placed on hold due to the economic crisis. According to information from the Mozambique Information Agency (MIA), the refinery will cause fuel prices to drop in the country.
According to the president of the Institute for Management of State Holdings (Igepe), Apolinário Panguene, Radyolla possesses the capacity required for building the refinery and pipeline.
“The Igepe has a host of projects to implement with partners, and Radyolla boasts the advantage of having enough financial strength to help us carry out this project,” he said. Panguene said Mozambique needs to execute six other infrastructure projects which are not in as advanced a stage as this one.
Following the signing of the memorandum of understanding, Radyolla and Igepe will assess the project cost. After that, the two companies will sign a contract to begin construction, and set deadlines for the works.
According to the Mozambican government’s project, the refinery will be built in Nacala, in the northern province of Nampula. The pipeline will be located on the port of Beira, in the central province of Sofala. According to Panguene, the pipeline will benefit other African countries, such as Zambia, Malawi, and the Democratic Republic of the Congo.
According to the AIM, Mozambique currently spends US$ 700 million a year on importing and distributing refined fuel. The Igepe forecasts that the refinery and the pipeline will cut costs by more than half, because the country will produce and even export oil.
*Translated by Gabriel Pomerancblum
