afrol News, 22 May - Mozambique's construction of an oil refinery in the Nampula province, has been hit by yet another huge setback with one of the major investors reportedly pulling out.

Reports from the country today, confirmed that constraints in raising the US$ 5 billion needed for the project's construction have further frustrated the hopes of the realisation of the project.

Major setbacks for the commencement of the construction have been blamed at the lack of fananciang as a result of the global financial crisis.

Mozambican newspaper Notícias reported that due to financial constraints Five International, which in partnership with Air Logistic had set up the consortium responsible for construction of the refinery, recently announced it was withdrawing from the project and put up for sale its shares in the project.

The paper quoted Francisco Mcanhela, the permanent secretary of Nampula province, saying that the dynamism that characterised the project in its initial phase of execution had died away, especially with the impact of the financial crisis also begining to be felt in the country.

The oil refinery in the northern Mozambique which once fully operational would produce 300,000 barrels a day would end the country's dependency on oil imports and create several hundreds of jobs during construction and after.

By staff writer

© afrol News

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