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EACOP: Ministry of Energy and Mineral Development ring fences Goods and Services for Ugandans

On Sunday 11th April 2021 the President of Tanzania, Her Excellency Samia Suluhu Hassan visited Uganda where she signed the East African Crude Oil Pipeline Project agreement together with His Excellency Yoweri Kaguta Museveni of Uganda.

The 1,440 kilometer crude oil pipeline that will be constructed  from Uganda’s Albertine region connecting to Tanzania’s Tanga Seaport will provide a number of economic opportunities for Ugandans and Tanzanians in the private sector as well as the creation of over 60,000 jobs by the year 2025.

The Minister for Energy and Mineral Development, Honorable Mary Kitutu urged Ugandans to seize this opportunity to prepare and apply for these contracts and jobs that would crop up by 2025. The Ministry of Energy has also gone a step further to ring fence a number of goods and services that will be provided exclusively by Ugandans and Ugandan registered entities.

Some of the contracts that will be earmarked for Ugandans include: Transportation, Security, Food and Beverages as well as locally available construction materials. The move that is geared to boost the country’s economy will make it easier for smaller businesses and individuals to access some of this more lucrative contracts that are usually taken up or reserved for much larger and most-times ‘foreign’ corporations.

Construction of the EACOP will cost $3.55 billion and is set to be the longest ‘electrically heated crude oil pipeline’ in the world. The extraction of the oil will take place in two oil fields: the Kingfisher field which will be run by China National Offshore Oil Corporation Ltd and the Tilenga Field that will be overseen by Total.

14,000 jobs will be created in construction of EACOP

An estimated 14,000 Ugandan nationals are expected to be employed by Total, CNOOC and the pipeline while an additional 45,000 jobs will be created on the sidelines by contractors according to Hon. Kitutu. The Minister also noted that there was ‘significant investment into Uganda’s economy’ adding that the development of this pipeline would boost the country’s economy by close to a quarter in 2025.

Environmental activists have also come out to decampaign the signing of the EACOP tripartite agreement arguing that it would be harmful to the environment and poses various risks and hazards to neighboring communities and Nature.

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