TAZAMA Pipelines Limited (Tazama) will hand over a site to Dalbit International (Dalbit) and BSL Infrastructure (BSL) in an official ceremony to commence construction of Tanzania’s largest fuel depot site.
The ground-breaking storage facility will transform Zambia’s fuel supply.
Currently, petroleum products imported via Tanzania are stored in multiple facilities across Dar es Salaam.
No single facility has enough capacity to meet demand.
Oil-marketers therefore have to pay multiple companies for storing fuel, increasing costs. The new facility in the Kigamboni district of Dar es Salaam will solve these critical issues. The site can hold 80,000m3 of diesel and 40,000m3 of petrol, meaning it will be able to store all petroleum products headed for Zambia and drastically improve time and cost efficiencies for oil-marketers.
Crucially, increasing storage capacity will boost the supply of fuel, helping to alleviate fuel shortages, which is vital for the sustainable development of Zambia.
Dalbit and BSL will build, finance and operate the site for 12 years after which the facility will be transferred to the Zambian government. Tazama will receive 50 per cent of proceeds from storage charges seven years after the facility becomes operational.
Construction of the two-year project officially begins this August and will employ over 250 Tanzanians.
Ensuring local capacity building, technology and knowledge transfer is central to the project, which complements both the Government of the Republic of Zambia and the United Republic of Tanzania’s efforts to grow their economies.
Dalbit and BSL have a proud history of delivery in Tanzania and Zambia. They have built 9 fuel depots since 2011, adding nearly over 90 million litres of storage capacity.
All projects have been completed on time, on budget and without any workplace injuries. 2,000 local workers were used to assist in construction.
Both companies have always formed close bonds with the local communities in which it operates and supports people even in the most challenging of times.
In Tanzania, Dalbit donated medical equipment for people living with disability and hospital beds to equip the children’s ward at Muhimbili Orthopaedic Institute.
Dalbit also donated motorcycles to the Tanzanian police to prop up security in the country in 2014.Last year in Zambia, $200,000 worth of PPE equipment was delivered to the Ministry of Health and the Beit-CURE hospital in Lusaka to support Covid-19 testing and enhance infection control and protection.
BSL also donated pediatric equipment, valued at $145,000, to the Arthur Davidson Children’s Hospital in 2019. A spokesperson for Dalbit and BSL said: “We are delighted to begin construction on a project that will have such a transformational effect for the Zambian economy, while also providing exciting job opportunities for hundreds of Tanzanians.”
“Fuel storage is a vital part of any country’s energy network, and we look forward to contributing towards the national development of both countries through the successful completion of this exciting public-private partnership.”
Kalemba June 23, 2021
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