http://africa.reuters.com/business/news/usnJOE4B70D6.html Who reckons money is impossible to raise for these sort of projects?
Kenya oil pipeline signs $103.5 mln loan deal Mon 8 Dec 2008, 10:49 GMT "NAIROBI (Reuters) - Kenya Pipeline Company (KPC) has signed an 8.2 billion shillings loan agreement with five Kenyan banks to fund part of the extension of its oil pipeline to the western town of Eldoret.
The government is extending the pipeline by 325 km (200 miles) to meet growing demand for refined petroleum products in the agriculturally-rich region and export markets like Uganda.
"Since we could not meet the entire cost of the parallel line from Nairobi to Eldoret, we decided to get into partnership with local banks," KPC's managing director George Okungu said in a statement seen by Reuters on Monday.
CFC Stanbic, Commercial Bank of Africa and Kenya Commercial Bank will each lend KPC 1,687 billion shillings, KPC said, while Barclays and Citibank will contribute 1.5 billion and 1,640 billion shillings respectively.
The balance of project funding -- whose total cost is estimated at 14.8 billion shillings -- will be met by KPC.
"We envisage that the project will be completed by 30th November 2011," Okungu said."
Orca Exploration announces approval of 2009 capital program
"TORTOLA, British Virgin Islands, Dec. 15 /CNW/ - Orca Exploration Group Inc ("Orca") announces that the Board of Directors has approved a US$11 million capital program for its gas asset in Tanzania in 2009. The majority of the capital will be allocated to the expansion of Orca's downstream distribution systems so as to increase the sale of gas to the industrial customers in Dar es Salaam and Morogoro by a forecast 5 mmscf/d by the end of 2009. It will include the construction of 10 kilometers of additional low pressure pipeline, the installation of a new pressure reduction station at the cement producer, Tanzania Portland Cement Company, and the expansion of Orca's compressed natural gas facilities. Orca will fund this capital program from internally generated cash flow while increasing its current cash deposits of US$10 million over the course of the year. The demand for natural gas continues to grow in Tanzania and Orca remains committed to identify ways to increase reserves, expand markets, reduce costs and monetise its assets."
KEY Price at posting:
7.2¢ Sentiment: Buy Disclosure: Held
(20min delay)