The $3.5bn (£2.7m) project will connect Uganda’s oil fields to Tanzania’s port of Tanga. The signing ceremony was attended by the presidents of both countries. Oil reserves were found in Uganda in 2006 but production has been delayed partly by a lack of infrastructure including an export pipeline. A start date for construction has not
“This is a very crucial project for our people,” said Tanzanian President John Magufuli, who signed the agreement paving the way for the pipeline in his hometown of Chato alongside his Ugandan counterpart Yoweri Museveni.
“Our signing today is a crucial step towards implementing the project which will not only create jobs, but also promote cooperation within the region, and stimulate economic development in areas the pipeline crosses.”
Work is scheduled to start by the end of the year on the East African Crude Oil Pipeline to exploit oil discovered near Lake Albert discovered in 2006. Reserves in the area are conservatively estimated at some 1.7 billion barrels.
“We want our people to work fast and start this project,” said Museveni at the signing ceremony.
After years of talks discussing the relative merits of different routes out to the Indian Ocean, Uganda announced in 2016 it would run the pipeline through Tanzania, not Kenya.
The enormous pipeline will run south of Lake Victoria to the port of Tanga near the Kenyan border.
Source : BBC & Other News Agencies