Tanzania – Two African countries Tanzania and Uganda have partnered for a major pipeline project under a private sector deal. The two nations have reportedly given theri nod on four key issues that need to be addressed in order for local businesses to benefit.
This is after the East African Crude Oil Pipeline had finalized a $3.5 billion project that covered the range from Hoima in Uganda to the port city of Tanga. Most of the people are concerned if the local businesses will be able to avail all the benefits of the deal and hence discussions regarding the ways to enhance such opportunities are being discussed
As per the conclusion of a meeting on Monday, the two countries have agreed on the steps that are needed to be addressed for the benefits including the government of Tanzania to address the bottlenecks of the whole procedure. The majority of the issues include border and work-related permits.
The countries have also reportedly agreed to go ahead with the things that are in the mutual interest of each other especially when it comes to financial matters. The aim is to provide quick access to finance with no collateral and interest rate.
The Association of Tanzania Oil and Gas Service Providers (ATOGS) stated while addressing the media that the government of Uganda has already started talking about issues related to bureaucracy while also taking note of work and border permits for the country.
The statement was made by the founder and chairman of ATOGS, Abdulsamad Abdulrahim, who also seemed extremely optimistic about the whole project. He was confident about the steps taken by the government of Tanzania and asserted that he will also address challenges that were previously agreed upon during the Host Government Agreement. “To ensure that Ugandan companies face no red tape here, ATOGS will be a point of contact and will have one-stop desk to give them much-needed support,” said Abdulrahim. He further emphasized promoting local businesses to help the local population sustain better.