Uganda advancing on oil pipeline developments

Tanzania Parliament has ratified the treaty concerning the crude oil pipeline between Tanzania and Uganda ahead of the construction expected to start early 2018.

The National Assembly passed the agreement on Monday afternoon, September 11, 2017, after comments from the energy and minerals committee, opposition and a short debate that demanded fine-tuning of some issues before and during the implementation of the project.

The Ugandan cabinet approved the ratification of the Inter-Governmental Agreement (IGA) between Uganda and Tanzania for the East African Crude Oil Pipeline (EACOP) Project in mid-August.

Known as the Intergovernmental Agreement between the United Republic of Tanzania and the Republic of Uganda concerning the Pipelines System of EACOP Project, it stipulates areas of cooperation, rights and freedoms to the project operators as well as the concessions the government provides for the project.

The other is the security issue where governments have agreed to provide for the safety and security for the project. Also in the treaty is the national content issue where the two states will cooperate with each other and with the pipeline project company in order to identify, develop and agree in a timely manner national content plans, national content obligations and procurement plans.

Energy ministers from the two countries signed the EACOP agreement in May this year where the countries agreed to construct the 1,445km pipeline from the oilfields in west Uganda district of Hoima to Chongoleani village in Tanga. The  contract aims at promoting efficiency, protecting and addressing the ownership structure of the US$3.5 billion project.