Mozambique: Fuel Supplier Must Pay Compensation

Maputo — The Spanish company Finergy must pay over 800,000 US dollars to the Mozambican Petroleum Importing Agency (IMOPETRO) in compensation arising from its delays in delivering liquid fuels to Mozambique in June and July, reports Monday's issue of the independent daily "O Pais".

This sum does not include the amount that Finergy should pay to the various fuel distribution companies whose business was damaged by the delays in receiving fuel.

The fuel supply contract was awarded to Finergy in May after a public tender launched in February. Under the terms of the contract, the company should supply Mozambique with petrol, diesel, kerosene and cooking gas for a six month period (June to December 2019).

But Finergy has not delivered the fuel by the agreed dates, which has imposed additional costs on Impetro and on the distributing companies.

The Imopetro general manager, Joao Macandza, told the paper that the distributors are now working out how much they have lost because of Finergy's delays, in order to charge the supplier for these losses in line with the penalty clauses in the contract.

"The costs incurred, both by Imopetro and by the distributors must be borne by the supplier", said Macandza. "Finergy did not comply with the contract, and the contract envisages penalties for this".

The next deliveries of fuel will be crucial: if Finergy fails once again, then Imopetro may terminate the contract.

In April, Imopetro launched another tender for the supply of refined fuels. This contract will cover 212,000 tonnes of petrol, 668,500 tonnes of diesel and 31,500 tonnes of jet fuel. Imopetro says that this tender is governed by international rules, similar to those specified in World Bank directives.

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