50% of emergency oil and fuel stocks to be stored by investors

The State Material Reserves Administration Office (SMRAO) plans to transfer the administration of about 50% of Slovakian's emergency oil and fuel stocks to investors. Private companies would help to build storage reservoirs and tanks that would allow the storage of strategic stocks to cover consumption in Slovakia for 90 days. The public procurement process is set to start at the end of this year. It should determine who will be awarded contracts for the next 20 years. Up to now, emergency stocks have been stored at Slovnaft, Transpetrol and SMRAO. The storage capacities of SMRAO no longer meet ecological standards. It is estimated that about 660 mil. Sk (16.58 mil. Eur) will be required for the storage capacities to meet the standards. The most expensive item will be the construction of new reservoirs. SMRAO expects this will cost at least 3 bill. Sk (75.35 mil. Eur). SMRAO chairman, Jan Tusim expects that private investors will welcome this opportunity. SMRAO plans to store 5 0% of stocks in private reservoirs and the remaining part in SMRAO reservoirs. Private investors will be obliged to fill the storage reservoirs and pay rent for their usage. The lowest running costs submitted by companies in the tender will determine the tender winner. (author)