Magufuli, Museveni sign agreement for construction of crude oil pipeline

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Tanzanian President John Magufuli (R) and Ugandan counterpart Yoweri Museveni in Chato, northwestern Tanzania at the signing ceremony. /Courtesy Photo
By :
AT Reporter

Chato, Tanzania – Tanzanian President John Pombe Magufuli and his Ugandan counterpart, Yoweri Museveni have on Sunday signed a host and implementation agreement paving way for the construction of a crude oil pipeline running from Hoima, Uganda to the port of Tanga in Tanzania.

The planned 1,445-km (900-mile) East African Crude Oil Pipeline is needed by Uganda prior to starting commercial production.

According to Hassan Abassi, a Tanzanian Government Spokesman, 80% of the pipeline will run through Tanzania.

He also revealed that Tanzania will earn 7.5 trillion shillings ($3.24 billion) and create more than 18,000 or more jobs over the next 25 years, that the project is in place.

The agreement on the pipeline construction comes days after French oil company Total said it had reached an agreement with Uganda protecting its rights and obligations in the pipeline’s construction and operation – known as the host government agreement.

Uganda has however not given a date for when construction of the pipeline will begin but Africa Tembelea has learnt that once construction on the $3.5billion oil pipeline begins, it would take 2-1/2 to three years to complete.

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