TAZAMA PIPELINE
The Government of the Republic of Zambia (GRZ) in consultation with the Government of the Republic of Tanzania has decided to seek a private sector partner to undertake a long-term concession of the operations and assets presently owned and managed by Tazama Pipelines Limited (Tazama). This provides a significant opportunity to invest in one of Africa’s most important crude oil pipe lines which stretches for about 1,710 km and currently transporting approximately 600,000 metric tonnes of crude per annum. GRZ is committed to the development of private sector participation in all sectors of the economy and would like to achieve substantial economic benefits from a privately operated crude oil pipeline.

Tazama is owned by Tazama Pipeline Limited which is jointly owned by the Governments of Zambia (66.7%) and Tanzania (33.3%).

The Company
Tazama is jointly owned by the Government of Zambia (66.7%) and Tanzania (33.3%). TAZAMA is one of Africa's most important crude oil pipeline which stretches for about 1,710 km and currently transporting approximately 600,000 metric tonnes of crude oil per annum.

The Pipeline
The onshore pipeline is 1,710 km in length from Dar-es-Salaam (Tanzania) to Ndola (Zambia) with a mix diameter of 8 and 12 inches. It was commissioned in 1968 and originally designed for a throughput of 1.1 million tonnes per year. Currently it is capable of handling approximately 600,000 metric tonnes per annum.

The pipeline is supported by equipment and infrastructure owned by the Tanzanian Harbour Authority comprising
(a) a 36 inch diameter sub-sea pipeline and  3.3 km in length, 
(b) the single point mooring buoy (SPM) held steady by catenary anchor chains concreted into the sea floor and can rotate and hold offloading tankers of a capacity of up to 90,000 deadweight tonnes,and
(c) Kurasani oil jetty for offloading tankers of a capacity of up to 40,000 deadweight tonnes through an 18 inch diameter pipeline.

The tank farm, owned by Tazama, includes six tanks onshore at Dar-es-Salaam which comprise three tanks of 36,000 m3  capacity and three  tanks of 41,000 m3 capacity. There are seven pump stations in total between Dar-es-Salaam and Ndola:five stations in Tanzania and two in Zambia.

Privatisation timetable/process

The Governments of Zambia and Tanzania agreed in principle to concession TAZAMA in April 2002. Both Governments constituted a Joint Technical Committee to study and advise on the mode of concessioning of TAZAMA.
It was also agreed by the two Governments that the Joint Convention that governs the tax provisions would continue, since the assets would still be owned by the two countries. ZPA is awaiting further guidelines.


For any further information please contact:
 
The Chief Executive Officer.
Zambia Privatisation Agency
Privatisation House
Nasser Road
P O Box 30819
Lusaka,
ZAMBIA

Telephone:   260 1 220177/222858/227735
          Fax:   260 1 225270

 
Email: Zambia Privatisation Agency or The Chief Executive Officer.

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