Representational Image. (Photo by KB Mpofu/Getty Images)
ZIMBABWE has entered into a joint-venture agreement worth $1.3 billion (£939 million) with Britain-based Coven Energy to set up a fuel pipeline from the port city of Beira in the neighbouring Mozambique to its capital Harare, the country’s information ministry said on Wednesday (11), AFP reported.
Monica Mutsvangwa, the southern African nation’s information minister, said the pipeline would complement the one which is already in existence between the two terminal points and make Zimbabwe, a landlocked country, a fuel hub in the region.
“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.
She said unlisted Coven Energy will set up a 50-50 joint venture firm with Zimbabwe’s National Oil and Infrastructure Company.
The African nation has struggled with shortages of fuel because of its perennial scarcity of foreign exchange but in recent months, its supplies have improved after the government allowed companies to sell the commodity in the American currency, AFP added.
Coven Energy is a UK-registered firm with strong South African links.