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Cabinet approves ratification of oil pipeline project agreement

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

According to a release signed by the Minister of ICT and National Guidance and Cabinet Spokesperson Frank Tumwebaze, the ministers of energy for Uganda and Tanzania signed the EACOP agreement in May this year.

Further, the release states that the Cabinet authorized the Minister of Energy and Mineral Development Irene Muloni to lay the ratified instrument of the IGA before Parliament in accordance with the Ratification of Treaties Act, Chapter 204 of the Laws of Uganda.

Some of the components of the treaty include: Cooperation – which requires states to cooperate in order to establish and maintain necessary and favorable conditions for the implementation of the EACOP Project, land rights where the two states undertake to ensure that the acquisition and grant of land rights in their territory and maintenance and possession of such rights by the pipeline project company is fair, transparent and legally enforceable.

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.

Further, according to the release, Cabinet also authorized the Minister of Foreign Affairs Sam Kutesa to deposit the ratified (IGA) and all instruments of ratification with the relevant international bodies.

The IGA provides the foundation for the project as well as for other project agreements, including host government agreements, shareholders’ agreements and financing agreements. The IGA is also a major step towards the development of Tilenga (the Northern Lake Albert Upstream Project) and Kingfisher Upstream projects.

Meanwhile, the Cabinet has also approved the ratification of the East African Community Protocol on Privileges and Immunities of the East African Community.

The fundamental objective of the protocol is to standardize the status, privileges and immunities to be accorded to members states in matters concerning; the assets and properties of the Community wherever situated in the Partner States, the employees of the Community, funds of the Community and their protection, tax exemptions and facilities in respect of official communication.

The Cabinet also authorized Kutesa to sign, seal and deposit the instruments of ratification of the Protocol.

 

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