By Daniel Itai.
Walvis Bay, Namibia. (News of The South) – The current construction of a US$300 million, fuel storage facility in Walvis Bay, is set to be funded by Namibian motorists.
In 2017, the government, through the Development Bank of Namibia, aquired two loans from the African Development Bank (AfDB) one for US$150 million and another for US$100 million.
“60 cents per litre of fuel is a dedicated levy to repay the loans used to construct the fuel storage facility.
The two loans will be repaid over a period of eight to 13 years. Since 2018, the National Energy Fund (NEF) has been repaying these loans utilising the dedicated levy,” said ministry of Finance’s chief public relations officer, Tonateni Shidhudhu.
Namibia’s current strategy in terms of strategic fuel reserves states that the country should hold between 30 to 45 days of reserves.
Currently it is estimated that all the fuel storage facilities in the country can cater for a mere 15 days or less of strategic fuel reserves.
Upon completion, the 75 million litre bulk storage facility will be the largest fuel storage facility in the country.
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