Tanzania forks out 484bn/- to fund EACOP 

TANZANIA: TANZANIA has contributed a total of 193.06 million US dollars (483.63bn/-) towards the implementation of the 1,443km East African Crude Oil Pipeline (EACOP) project as of September 26, this year.

EACOP Project Coordinator from the Tanzania Petroleum Development Cooperation (TPDC), Mr Asiafi Mrutu said since Tanzania owns 15 per cent shares in the crude oil pipeline project it is required to inject 308 million US dollars into the project.

He said the shareholders in the EACOP are affiliates of the three Upstream joint venture partners (the Uganda National Oil Company, TotalEnergies E&P Uganda and CNOOC Uganda) together with TPDC are supposed to inject 40 per cent of the project total cost.

Shareholdings are TotalEnergies (62 per cent), UNOC and TPDC (15 per cent each) and China National Offshore Oil Corporation (CNOOC) eight percent and the remaining 60 percent will be loaned from the financial institution.

TotalEnergies as of September 26 has disbursed 797.84 million US dollars, while UNOC contributed 193 million US dollars and a Chinese CNOOC has paid 102.95 million US dollars.

Speaking on the project progress, Mr Mrutu said EACOP has been completed by 25 per cent.

Currently the project is at the mobilisation stage and the implementation will be at full swing from January next year.

The project, which will cater across eight regions of Dodoma, Tanga, Singida, Geita, Shinyanga , Tabora, Kagera and Manyara, has compensated and relocated 9815 people out of 9898 residents who paved the way for project implementation.

“We have paid more than 34.89bn/-and constructed more than 293 houses for the people and the remaining 83 residents who have not been paid due to various reasons including family issues and whereabouts of owners,” he said.

The EACOP is implemented in compliance with international financing standards including International Finance Corporation Performance Standard 5 which requires Project developers to provide alternative housing in case of physical displacement

The crude oil pipeline construction will be in three lots, the first one from Uganda to Mtukula border, then from Mtukula to Singida and the final one from Singida to Chongoleani in Tanga.

He mentioned some of the economic benefits as taxes collection, job creation, skills and technology transfer and enhancement of the trade between Uganda and Tanzania.

During the construction phase the pipeline will create more than 3616 employment opportunities for both skilled and semi-skilled professionals.

In addition, casual workers will be involved in the construction phase of the project, sourced locally from each district.