If construction starts as scheduled in August 2016, the Uganda-Tanzania pipeline is due to be completed by 2020. Medard Kilimani told journalists that there have been prolonged negotiations but reported they seem to have agreed on most of the crucial issues. Despite prolonged negotiations, both countries have consented to ultimately sign the agreement with the pipeline construction company and to fast track developments to produce the first oil by 2020. Sources revealed there was no conclusion on talks on revenue sharing, taxation especially corporate income tax and local content in terms of jobs during the construction of the over 1400 kilometre pipeline from Hoima in Uganda to Tanga in Tanzania. Total did not comment publicly on this, but if confirmed, it would make the Tanga financing package significantly cheaper and less risky. He said the government in May last year completed the evaluation and compensation totalling Sh5 billion for residents affected by the project.
Uganda boasts having the forth largest reserves of crude oil so far discovered on the continent of Africa behind Nigeria, Angola and South Sudan. Each of the tanks according to Kilimani will store half a million litres of oil. When complete, it will add to projects in Mozambique, making the region a hub for the fuel. The government of Uganda and Tanzania in an intergovernmental ministerial committee has agreed to sign the Host Government Agreement for the construction of the East Africa crude oil pipeline by the end of June. The new deadline comes after week-long negotiations between Ministers from Tanzania and Uganda.
Energy minister Medard Kalemani said yesterday during a live broadcast on State Television. Uganda and Tanzania had agreed to fast-track developments to have first oil by 2020 but the timeline has had to be shifted. He left after almost one hour at the meeting. Despite prolonged negotiations, both countries have consented to ultimately sign the agreement with the pipeline construction company and to fast track developments to produce the first oil by 2020. By Rosemary Mirondo Dar es Salaam — Construction of the Uganda-Tanzania crude oil pipeline is expected to start in June once leaders of the two countries endorse agreements reached during negotiations. Since the project's inauguration in August 2017, there have been a series of technical meetings between the governments of the two countries but there were a number of issues that had not yet been addressed.
Some of the pending issues were the registration of companies to be involved in the project, distribution of revenue, issues related to defence and security for both countries, and citizen participation in the implementation of the project. Kalemani said the negotiations that have been in place since last year have not affected preparations towards construction of the pipeline. Explaining, he said Tanzania needed to identify an area where the five crude oil storage tanks with a capacity of 2. Today's meeting was preceded by meetings of the technical team permanent secretaries from the Energy ministries of the two countries. He challenged Tanzanians to be prepared, saying there will be 5000 jobs during construction of the pipeline and 1500 jobs when construction is completed.
On the Tanzanian were the energy Minister, Dr. The Environmental Social Impact Assessment Esia report for the is in the final stages and is set to be completed by next month. According to him, energy ministers from Tanzania and Uganda and other stakeholders met last Friday in Kampala, Uganda to finalise discussions that will the pave way for formalisation of the project. Uganda has proven crude oil reserves of 6. By Frederic Musisi Kampala — An inter-government ministerial committee from Uganda and Tanzania will meet today in Kampala to discuss the proposed East African Crude Oil Pipeline.
Uganda and Tanzania are expected to fund between 30 to 45 percent of capital expense through their respective national oil companies, Uganda National Oil Company and Tanzania Petroleum Development Corporation. To comment on this article, please contact Tags. The Hoima-Lokichar-Lamu pipeline route would have passed close to restive areas in northern Kenya, a region that shares a porous border with Somalia. Uganda and Tanzania have agreed to complete and sign a Host Government Agreement for the East Africa crude oil pipeline by end of June this year. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. The minister was speaking to the press in the company of his Ugandan counterpart Eng.
Uganda and Tanzania are expected to fund between 30 to 45 percent of capital expense through their respective national oil companies, Uganda National Oil Company and Tanzania Petroleum Development Corporation. The proven reserves currently stand at 6. That was the understanding and agreement. The meeting did not address issues of revenue sharing, taxation, or local content policy for jobs to be created by the pipeline. On the Ugandan side were Energy Minister, Irene Muloni, Lands Minister, Betty Amongi, Deputy Attorney General, Mwesigwa Rukutana and Energy Permanent Secretary, Robert Kasande. Lamu itself has seen violent attacks by al Shabaab and community tensions centred over land ownership, which have been exacerbated by the port development.
Articles and commentaries that identify allAfrica. The decision for Uganda to opt for the Tanga route came after intense lobbying by Kenya to build the pipeline through its country to the port town of Lamu via Lokichar where Kenya has also discovered oil. Uganda and Tanzania are expected to shore up between 30 to 45 per cent of capital expenditure through their respective national oil companies - Tanzania Petroleum Development Corporation and Uganda National Oil Company. Jean Lennock pointed out that the report will be submitted to the by December for approval. AllAfrica publishes around 800 reports a day from more than and over , representing a diversity of positions on every topic. He said Tanzania has already identified a place where the five oil storage tanks will be constructed.
Available data show that Tanzania has so far managed to register a total of 255 firms that are earmarked for various tenders related to the crude oil pipeline and other related projects. Tanzania and Uganda have already signed an agreement for the pipeline that will start in Dar es Salaam, pass through Tanga port on the Indian Ocean and Mwanza, a port city on Lake Victoria, before crossing to Uganda. She says oil can only come out when the crude oil pipeline and the refinery are ready to receive oil. The 1,445-kilometre pipeline will run from Hoima district in mid-western Uganda through 10 districts to Tanzania's southern Tanga Port on the Indian Ocean coast. Only 20 per cent - 298km - of the pipeline total length is in Uganda.