Uganda-Tanzania Oil Pipeline Struggles to Secure Funding.
The East African Crude Oil Pipeline (EACOP), a joint venture between Uganda, Tanzania, and foreign stakeholders, is encountering significant financing challenges.
The $5 billion project, is designed to transport oil from Uganda's Lake Albert reserves to Tanzania's port of Tanga.
The project has seen its main foreign partners, China National Offshore Oil Corp. (CNOOC) and TotalEnergies, increase their financial commitments in response to difficulties securing external funding.
The project's financing structure has shifted from 60% debt and 40% equity to nearly equal parts, with Uganda committing an additional $45 million and Tanzania expected to match this contribution.
The pipeline has faced strong opposition from environmental groups and some members of the international community, who cite concerns about potential environmental damage and community displacement.
As a result, several Western banks, including BNP Paribas, Société Generale, and Barclays, have declined to finance the project.
This resistance has prompted Uganda's Minister of Energy and Mineral Development, Ruth Nankabirwa, to seek potential Chinese investors in Beijing.
Despite these hurdles, the project's stakeholders remain committed to its completion.
The 1,443-kilometer pipeline, with a planned capacity of 216,000 barrels per day, is a critical component of Uganda and Tanzania's plans to develop their oil resources and boost their economies.
In Other News, A Sh1.1 trillion development project is transforming Dar es Salaam through the construction of 250 kilometers of paved roads across multiple districts, including Ilala, Ubungo, Kinondomi, Temeke, and Kigamboni.
This second phase of the Dar es Salaam Metropolitan Development Project comprises four main components focused on climate change adaptation and solid waste management, with 67 percent of funding secured through a World Bank loan and Dutch government grant.
The project encompasses the construction of roads, drainage systems, markets, bus stations, and public spaces, along with three modern waste management facilities.
The comprehensive infrastructure initiative includes 207 kilometers of paved roads, 75 kilometers of trenches, and 10 modern markets from the first phase.
The second phase will be adding significant improvements including 90.2 kilometers in the city center and additional road construction in Ubungo and Kinondoni districts.
The project, is supervised by the President's Office for Regional Administration and Local Government (PO-RALG).
It aims to improve priority infrastructure while promoting coordinated urban growth through specific regulations rather than uncontrolled expansion.
The development is designed to help Dar es Salaam achieve metropolitan city status by 2025, with officials emphasizing the importance of timely completion and adherence to quality standards