Capital Hill has admitted that the multimillion kwacha oil pipeline from Beira in Mozambique to Nsanje in Malawi has flopped.
Instead, authorities have opted for the much touted Southern African Development Community (Sadc) project, which is said to be cost effective.
The project, if implemented, would have saved millions of kwacha by ensuring that Malawi has adequate fuel supplies, according to economists.
The Government cancelled the project due to lack of donor or investor support to finance the project, which was part of the Nsanje Inland Port.
Ministry of Natural Resources, Energy and Mining, Ayam Maeresa, confirmed the development in an interview.
Maeresa said Capital Hill had set a deadline of last year to find donors to finance the project, but none showed interest.
“The project was also not economically viable. We discovered this towards the end of last year that there were no donors or investors to help Malawi go ahead with the project, hence the decision to shelve it,” he said.
Maeresa said the Sadc project is expected to start from Angola.
“It is meant to assist Malawi and other countries have fuel even in times of shortages,” he said.
A team of engineers from Qatar and Malawi, three years ago, completed the first phase of feasibility studies, which showed that the project was viable.
The Government then rehabilitated fuel reserves and formed the National Oil Company of Malawi (Nocma) in readiness for the oil pipeline venture.
Sane Zuka, a development economist, at the Polytechnic of the University of Malawi (Unima), said Lilongwe could have been able to export fuel to Zambia and Uganda, who don’t have ports, and make more forex through project.
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