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Uganda Oil Pipeline Route Debate Finally Closing

In the aftermath of the Northern Corridor Infrastructure Project Summit in Kampala recently, it was announced that Uganda has officially chosen the Southern route through Tanzania to Tanga port.

Speaking at the summit, President Museveni, said: “I have agreed with President Kenyatta that, let the two pipelines go ahead, one from Lokichar to Lamu and another from Hoima to Tanga.”

The announcement ends months of speculation and weeks of protracted deliberations by technocrats from the governments of Uganda, Kenya and Tanzania.

The decision on the pipeline route came from the meeting held a day before the Summit at Entebbe State House between President Museveni and a delegation from the French oil giant led by Africa director for exploration and production Guy Maurice and Total E&P Uganda general manager Adrewale Fayemi.

The 1,403 kilometre southern route is backed by French oil giant -- Total SA -- one of the three oil firms licenced to operate in Uganda together with the UK’s Tullow Oil PLC and China’s Cnooc. Total, which has conducted a study on this route, says is willing to bankroll the project.

The Japanese engineering firm Toyota Tsusho in 2014 conducted and submitted a feasibility study on the Lamu and Mombasa routes, but recommended the 1,300 kilometres Lamu route, citing the need to tap into the economies of scale of LAPSSET corridor -- a joint infrastructure project of South Sudan, Ethiopia and Kenya.

Amb. Augustine Mahiga, Tanzania’s Minister of Foreign Affairs, Regional and International Affairs, represented Tanzania, the South Sudanese presidential advisor on Economic Affairs Aggrey Sabuni, and Ethiopia’s Deputy Premier Debretsion Gebremichael, also attended the Summit.

Business Week East Africa
02 -May -2016

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