The East African Crude Oil Pipeline (Eacop) has reached 47 percent completion as of September 2024, with construction on schedule for a July 2026 finish. Jointly overseen by the Ugandan and Tanzanian governments, along with TotalEnergies and CNOOC, this $3.5 billion project promises economic benefits, job creation, and community engagement.
As of September 2024, the construction of the East African Crude Oil Pipeline (Eacop) Project, spanning from Uganda to Tanzania, has achieved 47 percent completion. The project, initiated in February 2022, involves extensive pipe-laying activities across eight regions, marking considerable progress in its development. A joint venture, Eacop is co-owned by the Ugandan and Tanzanian governments, each holding a 15 percent stake, alongside TotalEnergies, which controls 62 percent, and CNOOC, possessing an 8 percent share. Mr. Asiadi Mrutu, the project coordinator from the Tanzania Petroleum Development Corporation (TPDC), recently stated that the project is advancing on schedule with a projected completion date of July 2026. Total project costs are estimated at $3.5 billion, demanding careful logistical and environmental assessments to mitigate local ecological impacts. As of September, nearly all eligible local residents, approximately 99.3 percent, have been compensated, with total disbursements reaching Sh35.1 billion. Furthermore, the project has generated about 8,694 employment opportunities for Tanzanians, contributing significantly to the local economy. Mr. Mrutu highlighted the project’s financial advantages, noting that it has facilitated government revenue through various permits, fees, and land taxes. Furthermore, local services valued at Sh82.1 billion have been engaged for the project, amplifying its economic benefits. He also emphasized the critical importance of safeguarding the project’s infrastructure, sharing that community residents, alongside regional authorities, are actively involved in protective measures against potential sabotage. Once completed, the Eacop project is expected to provide 148 long-term job opportunities for individuals from Uganda and Tanzania. Mr. Mrutu asserted the commitment to ongoing stakeholder engagement by inviting diverse participant voices to project dialogues, ensuring their perspectives are integrated into the project’s developments while addressing pertinent concerns. The progress of the Eacop project is indicative of robust collaboration between the Ugandan and Tanzanian governments, TotalEnergies, and CNOOC, reflecting strong investment efforts in East Africa’s oil sector and continued commitment to local communities.
The East African Crude Oil Pipeline (Eacop) project is a significant infrastructure undertaking aimed at transporting crude oil from Uganda’s oil fields to the port in Tanzania. This initiative involves extensive logistical operations and is subject to rigorous environmental assessments to ensure balance with local ecosystems. The participation of both governments and major stakeholders such as TotalEnergies and CNOOC presents a collective effort in boosting regional economic development through job creation, infrastructure enhancement, and increased government revenues.
In summary, the Eacop project is progressing well, with notable completion status and economic benefits for local communities. With careful planning and stakeholder engagement, it aims to contribute positively to the economies of Uganda and Tanzania. The project is not only pivotal for local employment but also enhances regional collaboration and infrastructure development, with an emphasis on environmental stewardship.
Original Source: www.thecitizen.co.tz
