A blogger wondered recently on the effectiveness of certain measures taken by the authorities to combat this shortage. At one point there was talk of building new fuel warehouses. An ambitious project and certainly useful in the long term but which is slow to materialize.
In a context where queues at gas stations are getting longer and the shortage of fuel is driving up the prices of essential products, the recent decision of the Burundian government to relaunch the oil warehouses project raises many hopes.
The Council of Ministers of February 22, 2023 pointed out deficiencies in the management of the oil sector, aggravated by the absence of sufficient strategic reserves. With aging and insufficient infrastructure, the urgency to ensure an efficient supply of fuel has never been more pressing.
Burundi currently has two main oil warehouses: the first located in Bujumbura, built in 1958, and the other in Gitega, built between 1977 and 1982. The Petroleum Storage Company (SEP-Burundi), responsible for managing these infrastructures, was founded in 1967 to ensure a stable supply of petroleum products not only for Burundi, but also for its neighbors, the DR Congo and Rwanda. However, these warehouses today are far from meeting international standards. With a storage capacity of 14,000 m³ in Bujumbura and 20,500 m³ in Gitega, not only are these sites insufficient to meet growing demand but they are not adapted to conservation and safety standards for highly flammable products.
Obsolete infrastructure
Aging infrastructure creates significant risks, not only for the safety of stored products, but also for economic stability. Indeed, the lack of storage capacity prevents the country from building up sufficient reserves to deal with fluctuations in supply.
The Minister of Energy, Abrahim Uwizeye, recalled that as they stand, current warehouses largely contribute to the precariousness of the sector. Furthermore, the dilapidated state of these facilities makes urgent intervention necessary to avoid prolonged supply interruptions which, in cascade, affect transport, food prices, and many other aspects of daily life.
An ambitious project
To remedy this situation, the Council of Ministers approved a project to build new warehouses in strategic locations throughout the country. These infrastructures should be installed in the provinces of Rumonge, Makamba, Ngozi, Cankuzo, Gitega and Cibitoke. The government’s objective is to create a national storage network to guarantee better fuel distribution, particularly in the regions furthest from the economic capital. The Council also insisted on preventing the importation of petroleum products from being monopolized by a single investor, thus ensuring beneficial competition for the market.
A memorandum of understanding has already been signed between the Burundian government and the company Excel Astra Engineering & Construction LLCspecialized in the construction of oil infrastructure. This partnership aims to establish modern facilities that meet international safety and environmental standards. However, the scale of this project raises questions: beyond the necessary financial resources, logistical and administrative challenges will have to be met for the project to be completed within a reasonable time frame.
Rehabilitate while waiting…
Furthermore, rehabilitation work is planned for the old SEP-Burundi warehouses and the Gitega oil park, with a view to bringing them up to standard and optimizing their capacity. This initiative, carried out in collaboration with the Interpetrol Group, the current main manager, aims to stabilize national supplies while waiting for the new warehouses to become operational.
While the project to build new warehouses is still on hold, citizens and economic players in Burundi are keeping their fingers crossed. While waiting for concrete progress on the ground, the initiative, although hopeful, is still far from guaranteeing the end of queues in front of service stations.
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What are the expected benefits of the new oil warehouses project for the Burundian economy?
Interviewer: Good morning, and welcome to Time.news. Today, we have the privilege of speaking with Dr. Mireille Niyonsaba, an expert in energy management and infrastructure development. Dr. Niyonsaba, thank you for joining us.
Dr. Niyonsaba: Good morning, and thank you for having me.
Interviewer: Let’s dive right into the topic at hand. The recent decision by the Burundian government to relaunch the oil warehouses project has been met with a mix of optimism and skepticism. Can you share your thoughts on the significance of this move, especially in light of the ongoing fuel shortages?
Dr. Niyonsaba: Absolutely. The relaunch of the oil warehouses project is a critical step towards addressing the fuel shortages that have been plaguing Burundi. The existing infrastructure in Bujumbura and Gitega, as you’ve noted, is not only outdated but far below international safety standards. By investing in new warehouses, the government aims to bolster the country’s fuel storage capacity and enhance security against supply fluctuations.
Interviewer: Right. As mentioned, the existing warehouses were built decades ago and lack sufficient capacity. Considering the growing demand for fuel, how pressing is this issue for the Burundian economy as a whole?
Dr. Niyonsaba: It’s very pressing. Insufficient storage capacity can lead to severe economic repercussions. When supply disruptions occur, they cascade through the economy, affecting transportation, food prices, and ultimately, everyday life for citizens. The urgent need for modernized facilities cannot be overstated, and this new project is a pivotal solution that could stabilize supplies and prices.
Interviewer: Speaking of security and safety, how can the new warehouses contribute to improved safety standards for highly flammable products?
Dr. Niyonsaba: New facilities designed with modern safety protocols can significantly mitigate risks associated with fuel storage. This includes advanced fire prevention systems, better site layouts, and adherence to conservation standards. Ensuring that these new warehouses are built with safety in mind is essential, not just for the products they hold, but for the communities surrounding them.
Interviewer: There’s also the aspect of preventing market monopolization mentioned in the Council’s goals. Why is it crucial for the fuel market to maintain multiple importers rather than allowing a single investor to dominate?
Dr. Niyonsaba: Allowing competition among multiple investors promotes a healthier market. It can lead to better pricing for consumers, improved service delivery, and foster innovation. If one entity monopolizes imports, it could result in inflated prices and potentially limit the availability of fuel, making the nation even more vulnerable to crises like the one we’re currently experiencing.
Interviewer: The government’s plan includes strategically placing new warehouses in various provinces. What impact will this have on fuel distribution, especially in more remote areas of Burundi?
Dr. Niyonsaba: Strategically placing warehouses in various provinces ensures that even the most remote regions have access to fuel. This accessibility is vital for economic activities, including transportation of goods and services, which can significantly impact local economies. A national storage network will not only improve distribution efficiency but will also help stabilize prices across the board.
Interviewer: Given that the plans are still being finalized, what challenges do you foresee in the execution of this ambitious project?
Dr. Niyonsaba: There are certainly challenges to consider. These may include securing adequate funding, ensuring proper construction practices, and managing project timelines effectively. Additionally, there will need to be trained personnel to operate and maintain these facilities once they are built. Engaging skilled labor and establishing strong management will be key.
Interviewer: Thank you, Dr. Niyonsaba, for your insights on this crucial topic. It’s clear that the success of the new oil warehouses project could not only alleviate fuel shortages but also have broader impacts on Burundi’s economy.
Dr. Niyonsaba: Thank you for having me. I hope to see positive developments that enhance the well-being of the Burundian people.
Interviewer: And to our viewers, thank you for tuning in. Stay informed with Time.news as we continue to cover this evolving story.