Uganda-Tanzania pipeline to be built by multiple contractors

Tanzania and Uganda have agreed to award the construction of the crude oil pipeline from Hoima to Tanga to multiple contractors in a bid to speed up the project.

In a meeting between Tanzanian President John Magufuli and his Ugandan counterpart, Yoweri Museveni the two leaders suggested the project might be awarded to up to 6 contractors that would see the pipeline in place within 12 months.

“I suggest we use the design and construct model to speed up implementation of the 1410 kilometer project … and awards contracts to five or six different sections of the pipeline at the same time,” President John Magufuli is quoted saying.

This new agreement is a follow up of a MoU by the Joint Pipeline Development Committee (JPDC) and project steering committee consisting of energy officials from Uganda and Tanzania in October to fast track the implementation the implementation of the joint Crude oil export Pipeline from Hoima to Tanga port.

The two groups led by the respective ministers Prof Sospeter Muhongo and Irene Muloni also signed a memorandum of understanding to remove hurdles from the project including national and local government consents, project route, land access as well as environmental and social aspects.

The 1410 kilometer project being funded by Total and will enable the joint venture partners recently awarded production licenses France’s Total, London-listed Tullow Oil and China’s CNOOC able to evacuate about 200,000 barrels a day.

The project estimated to cost about $4 billion is expected to offer approximately 15,000 construction jobs and between 1,000 and 2,000 permanent jobs.