29 February 2008
Maputo — The project to build an oil refinery at Nacala-a-Velha, in the northern Mozambican province of Nampula, is taking off with the transport of equipment and machinery to the building site. The first production of refined fuels from this project, budgeted at around five billion US dollars, is expected in 2010.
Eurico Simao, a consultant for the company building the project, told AIM that this initial phase also involves building an Arts and Crafts School, intended to train local people. He said that the success of any project depends on the human factor.
"It is not enough just to take machines there", said Simao. "You must have people who work with the machines and study how to use them, and that's why it's fundamental to set up a crafts school".
This school will be supported by the Mozambican and Brazilian governments. "The Brazilians proposed a series of measures, and a plan that they have already used in various places around the world", said Simao.
The advantages of this plan is that it comes in modules already written in Mozambique's official language, Portuguese, and with teachers who will give classes at the school also in Portuguese. This, Simao believed, will facilitate the transfer of skills to the Nacala students, and the capacity to perform a variety of duties "which are absolutely essential. Without this, it's not worth putting the machines there".
Simao thought it possible to install the industry within three years so that in 2010, the first drops of petrol and diesel will begin to flow from the refinery. "It's been shown that it's possible to set up a refinery in Nacala", he said. "My clients started from the principle that it was viable. Studies were undertaken which led to the drafting of plans, and the conclusion was reached that we can put them into practice. That's where we are now".
Simao said the refinery is justified because of the rail links from Nacala to Malawi, and eventually into Zambia and Angola, making it possible to supply a vast market with refined fuels. A series of other industries complementary to the refinery could be developed, he added - including plants producing chemicals, plastics and fertilizer.
The refinery could also produced refined fuels for the Asian market. Nacala has the finest natural deep-water harbour on the east African coast. Tankers could take the fuel from here to India, China and Japan. This is doubtless part of the reason why Japanese Bank for International cooperation is supporting the development of the Nacala Special Economic Zone.
The Mozambican government approved the refinery project, known as the Ayr Petro-Nacala project, last October. The largest investor, with about 70 per cent, is Ayr Logistics, a company registered in the US state of Texas which describes itself as providing "a broad spectrum of logistics support throughout the world".
The refinery, covering an area of 838 hectares, will be able to produce over 300,000 barrels of fuel a day, and will employ 450 Mozambican workers.
Ram/pf (511)
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