Mauritian company injects US$1.2 billion to NOIC

Rudo Saungweme

In a move that should see an improvement in the supply of fuel, Sotic International company has injected US$1.2 billion to National Oil Infrastructure Company (NOIC). The financing facility stretches over ten years and is meant to pay for the Beira Feruka fuel pipeline user fees.

A Senior Government official who spoke to Harare Post on condition of anonymity said NOIC secured a US$1.2 billion financing facility from a Mauritian company Sotic International. He said that under that facility, Sotic will pre-pay for the use of the Beira Feruka fuel pipeline for ten years.

“The challenges of fuel in the country will soon be a thing of the past. It is pleasing to note that, the National Oil Infrastructure Company (NOIC) has secured a US$1.2 billion which is a ten year financing facility from Sotic International a Mauritian Company to pay for the Feruka Pipeline user fees. Under the facility, Sotic International would pre-pay for the use of the fuel pipeline for ten years,” revealed the Senior Government official.

The official revealed that the facility attracts an interest rate of six percent per annum and NOIC would repay the Sotic financial facility from the fuel trader’s deposits.

“NOIC would repay the pipeline pumping fees debt over ten years from deposits by fuel traders. The Sotic International facility attracts an interest rate of six percent per annum,” he said.

The deal between Sotic International and NOIC is projected to flow smoothly since it is a Government to Government structure as all parties are Government entities, Harare Post has learnt.

Speaking at the Zimbabwe Energy Regulatory Authority’s ISO Quality Management Standard Certification celebrations in Harare last week, Energy and Power Development Minister Honourable Fortune Chasi said that Government remains committed to eradicate fuel queues and is working on long-term financing mechanisms with the Reserve Bank of Zimbabwe to ensure that the supply gaps are eliminated over time.