TANZANIA: THE East African Crude Oil Pipeline (EACOP) project has achieved a major milestone following a successful closure of the first tranche of external financing, marking a significant step forward for the region’s largest infrastructure investment.
According to a statement released yesterday by EACOP, the financing, secured from a syndicate of leading financial institutions, underscores the confidence in the project’s viability and its potential to transform the East African energy sector.
The statement reads that the funding partners includes regional financial powerhouses such as African Export-Import Bank (Afreximbank), the Standard Bank of South Africa Limited, Stanbic Bank Uganda Limited, KCB Bank Uganda and the Islamic Corporation for the Development of the Private Sector (ICD).
This commitment from key banking institutions demonstrate strong backing support for EACOP’s vision and its pivotal role in unlocking Uganda’s oil resources for the global market.
According to the statement, the closure of this financing tranche is a critical significant milestone for EACOP and its shareholders: TotalEnergies (62 per cent), Uganda National Oil Company Limited (UNOC 15 per cent), Tanzania Petroleum Development Corporation (TPDC 15 per cent) and China National Offshore Oil Corporation (CNOOC 8 per cent).
Their collective commitment ensures that the project remains on track to deliver a game-changing export system that will boost economic development in both Uganda and Tanzania.
The construction of the 1,443-kilometre pipeline, spanning 296 km in Uganda and 1,147 km in Tanzania, is making significant headway.
As of the end of 2024 up to March 2025, the overall project progress reached 55 per cent, with continued emphasis on safety, environmental sustainability and engagement with local communities.
More than 8,000 Ugandan and Tanzanian citizens are currently employed on the project and an impressive 400,000 man-hours of training have been provided to equip the workforce with essential skills.
To date, 500 million US dollars has been injected into local economies through procurement of goods and services, further reinforcing the project’s positive economic footprint.
Once completed, the EACOP pipeline will have the capacity to transport up to 246,000 barrels of crude oil per day from Kabaale in Uganda’s Hoima District to the Chongoleani peninsula near Tanga Port in Tanzania. The pipeline is engineered with the latest technology, including a 24-inch insulated and buried system, six pumping stations and two pressure reduction stations. The marine export terminal in Tanzania will incorporate a 3 MW solar plant, reinforcing the project’s commitment to integrating renewable energy solutions.
Adhering to the highest environmental and social standards, the EACOP project aligns with the International Finance Corporation (IFC) guidelines and the Equator Principles, ensuring that its execution is socially responsible and environmentally sustainable.
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The project is also connected to the national power grids, primarily hydro-based, to minimise its carbon footprint. The EACOP project represents more than just an oil pipeline; it is a symbol of regional collaboration, economic development and industrial advancement.
The investment in training, job creation and local procurement ensures that communities along the pipeline route benefit from long-term economic opportunities.
With the support of key financial institutions and a strong commitment to responsible development, EACOP is set to become a cornerstone of East Africa’s economic transformation.
As the project advances towards completion, it continues to demonstrate that sustainable energy infrastructure can be achieved through collaboration, innovation and adherence to international best practices.
With a robust financing foundation now secured, EACOP is poised to drive economic growth, enhance regional trade and contribute to East Africa’s energy security for years to come.
I am one of the students who received training in operating a pipe welding plant under the CPP company And they promised us that when we graduate, we will be given jobs directly, but until now we do not know our fate, we have not even received our training certificates, we have wasted our time, we have not benefited from the project.