PHUZUMOYA – Prime Minister (PM) Russell Mmiso Dlamini has reiterated the need to ensure that the construction of the Strategic Oil Reserve Facility delivers meaningful economic benefits for emaSwati.
He emphasised that achieving the targeted 30 per cent local participation remains a key priority.
Speaking during a site tour of the landmark facility at Phuzumoya, Siphofaneni, the PM said while the project would significantly strengthen Eswatini’s energy security once completed, government was equally focused on ensuring that local contractors, suppliers, service providers and workers benefitted throughout the construction phase.
He said major infrastructure projects should not only deliver physical assets, but also stimulate economic activity by creating opportunities for local businesses and building the capacity of the country’s workforce.
“I, therefore, wish to reiterate the importance of achieving the targeted 30 percentage local participation on this project. This will not only create immediate opportunities, but will also contribute towards building the capacity of local companies and developing skills that will enable emaSwati to participate in future infrastructure projects, both locally and beyond our borders,” he said.
The prime minister added that government would continue to closely monitor progress towards the local participation target through the appropriate reporting mechanisms to ensure that the expected socio-economic benefits are realised.
He also welcomed the commitment by the contractor to implement meaningful corporate social responsibility initiatives and skills transfer programmes for emaSwati employed on the project.
According to the PM, equipping local workers with specialised skills would ensure that the country develops the technical expertise required to maintain and sustain the facility long after construction has been completed.
“I am also encouraged to learn of the commitment by the contractor towards meaningful corporate social responsibility initiatives and skills transfer programmes for emaSwati who will have the opportunity to work on this project,” he said.
Beyond local participation, the PM expressed satisfaction with the pace of construction, noting that the Strategic Oil Reserve Facility was progressing ahead of schedule.
Following a detailed project presentation and inspection of the site, he commended the project team for the milestones already achieved, including site establishment, site clearance, bulk earthworks, construction of the batching plant, fuel tank foundations and drainage works.
The PM described the facility as one of the kingdom’s most important strategic infrastructure investments under the Nkwe Programme of Action for 2024/25 to 2028/29 and the Grand Plan for National Transformation.
He said the project would strengthen Eswatini’s energy security by enabling the country to maintain strategic fuel stocks, thereby improving preparedness against disruptions to regional and international fuel supply chains.
He noted that recent geopolitical tensions, refinery challenges within the SADC region and extreme weather events affecting transport infrastructure had highlighted the importance of establishing an in-country strategic fuel reserve.
According to the PM, a secure and reliable fuel supply remains essential for sustaining economic growth, supporting businesses and ensuring that productive sectors of the economy continue operating efficiently.
He said the timely completion of the facility would contribute towards government’s broader economic objectives, including the target of achieving 12 per cent economic growth by the end of the 2028/29 financial year.
The PM urged the Ministry of Natural Resources and Energy, the Eswatini National Petroleum Company (ENPC), the main contractor, OEE and project manager CECI to maintain the current momentum and ensure the project is completed within the agreed budget, timelines and quality standards. “His Majesty’s Government expects this project to be completed without unnecessary delays or cost escalations,” he said.
He also stressed the importance of continued stakeholder engagement, encouraging ENPC to maintain close collaboration with all relevant stakeholders to ensure the smooth implementation of the project.
Addressing the contractor, the PM reaffirmed government’s full support for the project, describing it as a national priority.
“Given the positive progress witnessed today, we remain confident that the project can be successfully delivered within the contractual 36-month period, and potentially ahead of schedule, while ensuring that it remains within budget and fit for purpose,” he said.
The PM commended all parties involved for the progress made so far and encouraged them to maintain the same level of commitment, professionalism and dedication as construction advances towards completion.
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145 workers, project hits 16% completion
PHUZUMOYA – Currently, about 145 workers are on site at the construction of the Strategic Oil Reserve Facility.
Giving a progress update, Project Development Manager of the OEE Hein Papenfus said from the 145, about 128 are locals, which means 88 per cent.
About 17, according to the update, are foreign citizens who offer specialist trades.
About 81 have been engaged on limited duration contracts, while 64 are permanent employees.
Also shared as part of the progress update is that construction, which commenced in January 2026 following the engagement of the implementing partners, has reached 16 per cent completion.
It was said that this is ahead of the scheduled target of 14.9 per cent, reflecting the positive momentum achieved during the early stages of implementation.
Papenfus said the development remained on track and was performing better than planned. He credited the progress to the combined efforts of the project team and consulting engineers involved in overseeing the works.
Papenfus outlined the scope of the facility, which will include storage for petrol and diesel, as well as ethanol used in fuel blending. He said the depot will also feature rail and road loading and offloading facilities, a firefighting system, control rooms and supporting operational infrastructure.
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