Author: FLORENCE MUGARULA
AfricaPress-Tanzania: TANZANIA and Uganda have agreed on major terms for the quick and proper implementation of the East African Crude Oil Pipeline running from Ugandan oilfields to the Tanzanian port of Tanga.
A communiqué, signed by President John Magufuli and his Ugandan counterpart, Yoweri Museveni, stated the two countries had agreed to harmonise cross-cutting issues to enable the implementation of the 7.8tri/- project.
Reading the communiqué, Tanzania’s Attorney General Dr Adelardus Kilangi said the two Heads of State have noted the positive progress in the execution of the project, and that they had agreed each country to take immediate measures of signing agreements with companies that are involved in the construction of the pipeline.
Tanzania and Uganda have also reached agreement on negotiations for the signing of all other pending contracts with various companies that are involved in one way or another in the project.
The two presidents also underscored the need for each country to take immediate measures that will enable swift implementation of the project from now.
Tanzania’s Energy Minister, Dr Medard Kalemani said earlier all preparations for the project kick-off have been completed.
He mentioned some of the pre-construction activities that have already taken place as surveying and designing of the area for laying the pipe, studying the structure of rocks, environmental assessment and identifying people whose areas would be covered in the project for compensation.
Dr Kalemani said the government received the environmental clearance certificate in April, this year, after the assessment exercise was completed.
Dr Kalemani said it had taken some time to finalise the job due to various legal matters that differ between Tanzania and Uganda.
“We have taken time to reach this point because of legal based issues, but we have finally reached this point due to good cooperation from both sides,” he noted.
He said the project would be implemented within a 36-month period and that upon completion, the pipeline is planned to have capacity of 216,000 barrels per day.
“We will start with 1047barrels per day, and from each barrel Tanzania will get 12.47 US dollar,” noted Dr Kalemani.
In May, 2017, the two Heads of State signed a pact expressing their intent to go ahead with the construction of an oil pipeline from Uganda to Tanzania.
The two countries had been negotiating on how to proceed with the EACOP project after the East African nations agreed in April, 2016 to the pipeline going through Tanzania and not Kenya as it had been earlier planned.
Few months later, President Magufuli visited Uganda to seal cooperation in areas of transport, power and oil and laid a foundation stone in Hoima.