MBABANE – The EXIM Bank of Taiwan has lived up to its promise to assist Eswatini in constructing the Strategic Oil Reserve Facility (SORF).
This is evidenced by its transfer of E1.5 billion to government to begin the project.
Requested for clarity, the Minister for Finance, Neal Rijkenberg, confirmed the E1.5 billion has been transferred to government, signalling the start of the magnificent project.
It must be said that a subsidiary loan agreement between the Eswatini National Provident Fund (ENPC) and the Ministry of Finance formalising the on-lending arrangements and enabling the operationalisation of the approved project financing structure was signed.
The loan agreement was signed in June 2025.
The sum of US$300 million was legally sourced through the Export–Import (EXIM) Bank of China (Taiwan) Loan Act. The Act enables the ENPC to commence the construction of the 80 million-litre capacity Strategic Oil Reserve Facility.
According to the Ministry of Natural Resources and Energy’s performance report for the period ending December 31, 2025, a 30 per cent advance payment was released to government by EXIM Bank on November 5, 2025.
It is said that payments have been made to both the contractor and the project manager, marking the effectiveness of their respective contracts with ENPC.
In support of transparency and stakeholder accountability, it is reported that site visits were conducted with key stakeholders to assess construction progress and verify activities on the ground.
According to the ministry, site access has been granted to the contractor. It further reports that construction has commenced with an initial three-month scope of work.
It is mentioned that the works include site clearing and bulk earthworks, a geotechnical survey and soil testing, drilling of a borehole, establishment of site offices and site fencing.
The ministry stated that progress on the worksite establishment was reported at 95 per cent by the end of the third quarter of the 2025/26 financial year,
Regarding progress by March 31, 2026, the ministry’s report outlines that by the end of the current financial year, certain milestones are expected to have been achieved.
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The Ministry of Natural Resources and Energy says, in support of transparency and stakeholder accountability, it conducted project site visits with key stakeholders to assess construction progress and verify activities on the ground (Pic: Ministry of Natural Resources and Energy)