By News room
President Yoweri Museveni and his Tanzanian counterpart John Pombe Magufuli have signed the East Africa Crude Oil Pipeline Agreement.
The agreement signed in the Tanzanian State House in Dar-es-Salaam, marks an important step towards construction of the 1,400km pipeline from Hoima in western Uganda to Tanga Port on the Indian Ocean coast.
According to the communiqué at the signing of the agreement the pipeline will cost nearly 15 trillion shillings and they expect to realize a long-term economic and social development between the two countries.
Both heads of state directed their Attorneys Generals to fine-tune an Inter-Government Agreement which the respective Energy Ministers will sign this Friday May 26th and officially have the pipeline construction kick start adding that a date for the two heads of state to lay a foundation stone at either Hoima or Tanga should be arranged as soon as possible.
The president’s Press senior secretary, Don Wanyama, says President Museveni opted for the Tanzania route because of the country’s relative stability, favorable land system and because Tanga is a protected port that is not easily affected by ocean waves”.
Tanzania beat Kenya in the crude oil pipeline deal. Initially, the plan was to connect the pipeline to Kenya’s oil wells in the Turkana region and connect to Lamu Port. Uganda has discovered 6.5 billion barrels of oil and plans to get the First Oil by 2020.
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