Mozambique: Nacala refinery becomes increasingly unlikely

May 22nd, 2009    News

Maputo, Mozambique, 22 May – The construction of a refinery in the Mozambican district of Nacala-a-Velha, in Nampula province, appears to be an increasingly unlikely prospect due to investors giving up on the project and difficulties securing the US$5 billion needed for its construction, Mozambican newspaper Notícias reported.

The paper added that due to financial constraints Five International, which in partnership with Air Logistic had set up the consortium responsible for construction of the refinery, recently announced it was withdrawing from the project and put up for sale its shares in the project.

Francisco Mcanhela, the permanent secretary of Nampula province, told Notícias that the dynamism that characterised the project in its initial phase of execution had died away recently, particularly as of the time when the impact of the financial crisis also began to be felt in the country.

According to Mucanhela the banks with which the consortium was working had also been affected by the crisis, which was another factor that had affected the normal progress of the project.

In mid 2008 Air Logistic and the Five Internacional group met with the district government to define the guidelines for the physical implementation of the refinery, and it was agreed at the time that the consortium would pay compensation due to the population resident in the approximately 800-hectare area of the project. (macauhub)