Uganda in Final Stages of Chinese Funding for EACOP

SEATTLE (Oil Monster): Uganda is reportedly in final stages of negotiations with financiers in China towards funding for construction of the controversial East African Crude Oil Pipeline (EACOP). It must be noted that the project has been at a crossroads following the withdrawal of Western investors.

According to Irene Bateebe, permanent secretary at Uganda’a Energy Ministry, the final discussions with two Chinese partners- the Export-Import Bank of China and Sinosure on providing nearly 50% of the finances towards construction of the historic pipeline is in progress. It hopes to conclude final agreements with the financiers in the month of October, Bateebe said.

ALSO READ:

Congo in Discussions with Uganda over Use of Crude Pipeline

Uganda Granted License to Construct New Crude Pipeline

The Ugandan government sourced for other financing partners in place of European partners only because it believes that it is a critical project for the country.

The proposed pipeline will run a distance of 1,445 kilometres from western Uganda to a port on the Tanzania’s Indian Ocean cost.

TotalEnergies hold the majority stake of 62% in EACOP. The other shareholders of the project include the state-run Uganda National Oil Company and Tanzania Petroleum Development Corporation, who owns 15% each. The remaining 8% stake id held by Chinese CNOOC.