EACOP project on track for completion next year- TPDC

TANGA: THE East African Crude Oil Pipeline (EACOP) partners have successfully overcome major challenges that once threatened the multi-billion-dollar project, keeping it on track for completion by July next year, according to TPDC Board Chairman Ambassador Ombeni Sefue.

Briefing journalists after an inspection tour of the Chongoleani Terminal in Tanga City, Ambassador Sefue said the project had successfully weathered a sustained campaign by activists who had sought to discourage international financial institutions from supporting it.

He explained that the antiEACOP campaign, which targeted global financiers with claims of environmental risks, aimed to block funding and delay implementation of the project.

“I can assure you that despite the opposition, the project has secured full financing and remains firmly on track for completion by July next year,” said Ambassador Sefue during a briefing at the Chongoleani Pipeline Terminal, the endpoint of the 1,443-kilometre pipeline from Kabaale, Uganda.

He praised the resilience of the East African Crude Oil Pipeline (EACOP) partners including TotalEnergies (62 per cent), China National Offshore Oil Corporation (CNOOC – 8 per cent), Tanzania Petroleum Development Corporation (TPDC – 15 per cent) and Uganda National Oil Company (UNOC – 15 per cent) for maintaining steady progress amid global financing pressure.

According to Ambassador Sefue, the pipeline project has reached 70 per cent completion, with 65.6 per cent of the welding, equivalent to 946 kilometres, already finished. “The pace of implementation is encouraging and we are confident that Tanzania will soon host one of the most advanced oil export terminals in Africa,” he said.

He said the EACOP project, which stretches from Uganda’s oil fields to the Indian Ocean coast at Tanga, underscores Africa’s determination to manage its natural resources responsibly while driving economic growth.

Ambassador Sefue highlighted several benefits already being realised in Tanzania through the project’s implementation. He said the government has collected 70bn/- in revenue from various taxes and fees and expects total earnings to exceed 2bn/- once the pipeline becomes operational. “In Tanga City alone, contractors working under EACOP have contributed 2bn/- in local revenue,” he noted.

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Out of 9,927 project-affected persons, 9,869 (99.4 per cent) have already been compensated, amounting to 35.06bn/-. In Tanga Region alone, 1,688 residents have received a total of 10.49bn/-, while 43 modern replacement houses have been built for 40 families.

He said more than 200 Tanzanian companies have been awarded contracts worth 1.325tri/-, contributing significantly to local economic growth and job creation. So far, the EACOP project has created over 9,000 jobs, with 75 per cent going to Tanzanians in both skilled and semi-skilled categories.

Additionally, 800 young people have been identified for vocational training in mechanics, construction and electrical installation to support ongoing and future industrial projects.

He said the project is also boosting regional infrastructure, including the upgrading of 304 kilometres of roads and construction of five new electrical substations, which will enhance power access in rural areas along the pipeline corridor.

Mr Sefue noted that EACOP partners continue to invest in community development projects as part of their corporate social responsibility in Tanga. These include a 4.4bn/- water system benefiting 26,000 residents of Chongoleani and the construction of a health centre in Chongoleani Ward.

He urged journalists to play a proactive role in providing accurate information to the public and countering misinformation propagated by activists opposed to the project.

“Don’t listen to activists,” he said. “They don’t know what is going on or how the project is being implemented with strict adherence to environmental protection and the welfare of our people.”

Ambassador Sefue emphasised that EACOP is one of the safest and most responsibly managed oil infrastructure projects in the world, designed to deliver lasting social, economic and environmental benefits.

Responding to concerns raised by international campaigners, EACOP Tanzania Country Manager, Engineer Geoffrey Mponda, assured that the project adheres strictly to both Tanzanian and international environmental and human rights standards.

He said the project employs advanced technologies such as Horizontal Directional Drilling (HDD) for river crossings including the River Sigi in Tanga which allows the pipeline to pass 15 metres below the riverbed without disturbing aquatic ecosystems.

Engineer Mponda added that other safeguards include the use of thermal insulation systems to prevent underground heat leakage, topsoil restoration to support re-vegetation, collaboration with TANAPA, TFS, NEMC and TAWA to protect wildlife and forest areas, as well as plans to establish solar farms to reduce carbon emissions and sustainably power EACOP facilities.