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Privatization Agency to Set Up Palm Oil Refinery

The Ethiopian Privatization and Public Enterprises Supervising Agency of Ethiopia is to set up a new enterprise on palm oil refinery at projected cost of 401.1 million Birr. The refinery is to be built with the expectation that once completed the enterprise will have an annual production of 300,000 tons, as it stated by the officials of the Agency.

The production will be equal with the annual import order of the state owned enterprise, Merchandise and Wholesale Trade Enterprise which covers 80% of the national demand currently.

The agency has invited interested parties both domestic and international, to bid in a public tender, for the construction of a crude edible oil refinery plant on the two locations allocated by the government.

The project has been given priority because there are very few domestic manufacturers with low level production capacity that is not able to satisfy national demand covering just 20% of the market demand and resulting in massive imports of palm oil, which the government to had to work on price-cap.

The location for the new oil refining plants is under study and will be disclosed in the near future according to sources.

Source: Fortune