Pacific Interlink is to construct an oil refinery plant in Ethiopia at an investment of 401.1 million birr according to sources. The plant is expected to produce 300 thousand tons of oil annually.

The proposal proffered by the Malaysian palm oil manufacturer was approved by the Privatization and Public Enterprises Supervising Agency which was responsible for the initial design and viability study for the proposed project.

The proposed refinery will be the largest to be constructed in the country yet and is expected to help alleviate the current shortage of oil in the country. PPESA conducted the feasibility study with the objective of that domestic production can substitute for the significant oil import bill. The agency floated a tender requesting Expressions of Interest from companies interested in implementing the project in a joint venture with the government or separately.

Candidates shortlisted for the project were asked to submit complete business plans and a proposal about the modality and implementation of the project. They were also required to proffer a three year audit report.

The proposal submitted by Pacific Interlink was finally approved by the agency because it had the experience and the capacity to handle the project according to Asebe Kebede, Assistant Public Relations Head with the Agency.

Source: Fortune