Last updated on September 11th, 2021 at 08:24 am
East African countries Uganda and Tanzania signed the Host Government Agreement (HGA) for the building of the East Africa Crude Oil Pipeline (EACOP) project.
The signing of the settlement took area on Sunday in Chato in the northwest of Tanzania in a ceremony attended by means of Ugandan President Yoweri Museveni and his Tanzanian counterpart John Magufuli.
The pipeline will run from Uganda’s oilfields to the port of Tanga in Tanzania’s northeast. According to Tanzania’s government spokesman, Hassan Abassi, greater than three-quarters (80 percent) of the pipeline will run through Tanzania.
Though Uganda has now not but formally introduced a date for when the development will begin, it had before stated that the undertaking will take two-and-a-half to three years to complete.
Abassi stated that Tanzania will earn an estimated $3.24 billion and create more than 18,000 jobs over the next 25 years, or more, that the project will be in operation.
Museveni already oversaw the signing of the HGA for the EACOP project between the authorities and French oil and gas multinational company Total.
The HGA is a felony agreement between a overseas investor and the nearby government referring to to the development, construction and operation of a challenge by using the investor.
Museveni the conclusion of that deal with Total “moves us nearer to manufacturing of crude oil in Uganda.”