…fuel project to enhance economic stability
Tulani Ngwenya
GABORONE, Botswana – In a move meant to break free from over-reliance on South African refined petroleum fuel imports, Botswana has initiated the construction of a state-of-the-art 60-million-litre storage facility near Ghanzi, along the Trans-Kalahari Highway.
The strategically located facility is expected to bolster the nation’s fuel security by diversifying supply routes and reducing dependence on a single source.
Botswana currently relies predominantly on South African imports and the authorities said they had realised the vulnerability of the country’s national fuel supply due to its overdependence on a single source and route.
Single source fuel route posing a risk
The Vice President of Botswana, Slumber Tsogwane, expressed concern over the risks posed to the country’s fuel security, emphasising the need for strategic measures to safeguard against potential shortages.
Botswana Oil Limited (BOL), the national oil company, has taken the lead in addressing this critical issue by investing a total of P1 billion (approximately $74.5 million) in the construction of the 60-million-litre storage facility. The project, expected to be completed within 12 months, aims to significantly enhance the country’s fuel supply security, particularly in the western region.
During the official commencement ceremony on 16 December 2023, Tsogwane highlighted the importance of the project towards achieving energy security. He underscored that Botswana’s current strategic storage capacity of 18 days fell short of the international criterion of 90 days, putting the nation at risk. The Ghanzi storage facility, upon completion, was projected to add 18 days to the strategic storage capacity, bringing it closer to the international benchmark.
Project part of broader fuel supply strategy
The facility, situated 45 kilometres outside Ghanzi along the Chobokwane Road, was part of Botswana’s broader strategy to diversify its fuel supply routes. By leveraging the Namibian Walvis Bay port, Botswana aimed to reduce its reliance on the South African route, which the vice president identified as a significant threat to the local economy.
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Botswana Oil Limited CEO, Meshack Tshekedi, provided an overview of the project, highlighting its comprehensive scope, including bulk petroleum storage, administration offices, staff houses, and associated infrastructure. The project had been meticulously unbundled into four contracts, providing opportunities for citizen contractors to actively participate in various aspects of the development.
Government committed to involving citizens in fuel project
Tshekedi emphasised the commitment to involving citizen contractors in the project, with Contract 1 for Civil and Building Works exclusively reserved for 100% citizen contractors. This approach aligned with Botswana’s National Energy Policy of 2021 and aimed to ensure the inclusive growth of the local economy.
You can watch the ground-breaking event here: https://web.facebook.com/watch/live/?ref=watch_permalink&v=1118095936017361
