Uganda, Tanzania Agree on Technical and Fiscal Framework of the Joint Pipeline Project

Energy officials from Uganda and Tanzania agreed on the technical and fiscal work plan in fast-tracking of the joint crude oil export pipeline project.

The Joint Pipeline Development Committee (JPDC) and project steering committee from both countries met to in Tanzania to haggle and strike a common position on the project schedule and workout modalities to expedite all necessary approvals, including land access, environmental and societal aspects, routing, project agreements and other activities requiring national or Local Government consents.

Local media in Tanzania reported that officials signed an inter-government memorandum of understanding to implement the recommendations by both committees.

The signing ceremony was witnessed by Tanzania Minister for Energy and Minerals, Prof Sospiter Muhongo and his Ugandan counterpart, Irene Muloni.

Minister Muhongo said the terms agreed upon with Uganda such as the fiscal package had undergone through stages of approval including the cabinet.

The proposed oil pipeline, named the East African Crude Oil Pipeline will run from Uganda’s oil-rich Albertine graben to Tanzania’s northeastern port of Tanga.

Both nations agreed on the construction of the $4 billion infrastructure in April 2016. Work is expected to commence in January 2017.



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