Uganda and Tanzania agree on the Implementation Plan for the Hoima-Tanga Crude Oil Pipeline
Governments of the Republic of Uganda and the United Republic of Tanzania have put the Hoima – Tanga crude pipeline on fast-track mode, prioritizing critical path activities.
Such critical path activities include: undertaking detailed route refinement and optimisation studies, led by the Lead Sponsor, conclusion of key project agreements including the Inter-Governmental Agreement (IGA), Host Government Agreement (HGA) and Shareholders Agreement, and carrying out of Front End Engineering Design (FEED); and Environment and Social Impact Assessment (ESIA).
The two Governments also re-affirmed the implementation of the project as a private sector-led project, with TOTAL E&P as the Lead Project Sponsor until the Pipeline Company (PipeCo) is established and the other Oil Companies in Uganda will be fully involved in the Project.
“This is a huge opportunity for Uganda because it will involve the employment of professional in engineering surveying, geotechnical, social and environmental specialists, technicians, wielders, as well as creating business opportunities for suppliers of goods and services which will include construction of roads, power lines, and field camps," Dr. F.A Kabagambe-Kaliisa, the Permanent Secretary of the Ministry of Energy and Mineral Development, explained.
“We urge the people of Uganda to take the advantage of the various opportunities.”
The agreement was reached at a meeting held between the two governments of Uganda and Tanzania at Julius Nyerere International Convention Centre (JNICC) in Dar Es Salaam on 29th April 2016 to iron out the Implementation Plan.
Uganda's delegation was led by Eng Irene Muloni, the Minister of Energy and Mineral Development and it included the Permanent Secretary for Ministry of Energy and Mineral Development Dr F.A. Kabagambe-Kaliisa, the Director for Petroleum, Mr Ernest Rubondo and Senior Government Officials from the Ministries of Energy, Finance and Justice.
The Tanzania Team was led by Prof. SospeterMuhongo, the Minister for Energy and Minerals and it included Prof. Justin Ntalikwa, the Permanent Secretary, senior officials from Government of Tanzania, Tanzania Petroleum Development Corporation and Tanga Port Authority.
The meeting follows the 13th Summit of the Northern Corridor Integration Projects held in Kampala on 23rd April 2016, in which it was agreed that two pipelines be developed, one from Hoima to Tanga to be developed by Uganda in close cooperation with Tanzania and the other from Lokichar to Lamu to be developed by Kenya.
Uganda and Tanzania reiterated the strategic nature of the project and concurred on the Target Completion Date or Commercial Operations Date of 2019/2020. To move forward the Project, a Joint Project Development Team comprising of the two Governments and the Oil Companies is to be established.
The Team will report to the Project Steering Committee headed by the two Permanent Secretaries DrKabagambe-Kaliisa and Prof. Ntalikwa.The Project Development Team will meet in Uganda during the week of 2nd May to develop the project schedule and work out modalities to expedite all necessary approvals, including land access, environmental & societal aspects, routing, project agreements and other activities requiring national or Local Government consents.
Dr. F. A. Kabagambe-Kaliisa
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