AfDB and Uganda grant $1 million to boost East African Crude Oil Pipeline
The African Development Bank and the government of Uganda have signed an agreement to each provide $500,000 of finance for micro, small and medium sized private enterprises along the East African Crude Oil pipeline (ECOP). Grants to local businesses along the route could help them access new market opportunities and help build links with regional, national and international companies. This initiative alone could help to create 500 jobs. A similar initiative is being finalized on the Tanzanian side of the border.
In 2006, Uganda discovered commercially viable crude reserves of around 6 billion barrels in the Lake Albert area. Total SE leads plans with partner Cnooc Ltd, to build the 1,445 km ( 898 mile) crude oil export pipeline to transport oil from Habaale Holma in Uganda to a marine export storage terminal north of Tanga port, Tanzania.
The $3.5 billion project awaits a final investment decision. Construction could start in April 2021 with oil reaching the export terminal in 2023-2024. The 24 -inch diameter insulated buried pipeline will be the longest heated crude oil pipeline in the world and is expected to carry 216,000 barrels and create more than 18,000 jobs. However, international charity Oxfam, claims that 12,000 families could lose their land to the pipeline which also is said to threaten sensitive ecosystems.