Tanzania Eyes Economic Benefits From Uganda Oil Export Pipeline

President Museveni and Magufuli launch EACOP in Hoima recently President Museveni and Magufuli launch EACOP in Hoima recently

Tanzanian authorities are strategizing how to maximally benefit from Uganda’s crude oil which will be exported through their sea port of Tanga once production start, prefereably in 2021 as the new deadline set by authorities in Kampala.

Merdard Kalemani, the Tanzanian energy minister told journalists during a bilateral meeting meeting Uganda and Tanzania that his country is putting national interests first in the ongoing talks on the construction of the Uganda-Tanzania Crude oil pipeline.

“We must make sure that the country benefits from the project. To start with, we will identify, empower and bring on board local companies to provide services during the construction of the pipeline,” Kalemani stated.

“We want to ensure that the economic benefits from the oil pipeline project contribute to our economic growth. What is being done so far is that we are digging the trenches in Manyara, Tanga and Kondoa in Dodoma in preparation for the laying of the oil pipeline.” He further explained.

Uganda is planning a 1445km long crude export pipeling to export its oil. It has sought the corporation of Tanzania to use its sea port. The two countries together with international oil companies are working out modalities to see this multi-million dollar project is implemented.

Once implemented, especially during the construction phase, thousands of both Ugandan and Tanzania nationals will get jobs and opportunities to provide goods and services directly or indirectly to the project.  

In January the energy ministers from both countries will meet again in January, in Kampala, to deliberate further on the project. Talks are expected to lead to the signing of the Host Government Agreement which will be a big step towards commencement of the pipeline construction works.

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