MPs: Govt shares in EACOP all paid for

By Guardian Reporter , The Guardian
Published at 10:26 AM Aug 10 2024
 East African Crude Oil Pipeline Project (EACOP)
Photo: File
East African Crude Oil Pipeline Project (EACOP)

THE Tanzania government has fully contributed its capital share as a shareholder in the A project, with the government contributing $308m to date, equalling 15 percent of shareholding.

Oran Njeza (Mbeya Rural), chairman of the parliamentary standing committee on the national budget, made this assertion yesterday after inspecting the implementation of the EACOP project at the Chongoleani site for building an oil export port terminal in Tanga, designated to receive, store and offload crude oil from Uganda for export overseas.

Land acquisition for the EACOP operational excluded area was 99.2 percent complete, with small plots of land held up due to inheritance and powers of disposal issues, he said, noting that the exercise is progressing well in Uganda, he stated.

Profiling the committee’s work which oversees the country’s planning and economy, he stressed the economic importance of the EACOP project, urging the relevant authorities to provide substantial support to ensure its timely completion.

"A major project like EACOP was not expected to be carried out in Africa, but the vision of the Heads of State made this project possible,” he stated, underlining that allowing oil to be transported through pipelines also helps in environmental protection.

The committee urged the Ministry of Energy to prioritize the construction of pipelines for transporting natural gas and crude oil, thus positioning Tanzania as a regional energy transportation hub.

The committee asked the Tanzania Petroleum Development Corporation (TPDC) to increase efforts in promoting the project so that residents of Tanga and elsewhere become aware of how the government is advancing its projects.

Dr Batilda Buriani, the Tanga regional commissioner, stated that the EACOP project brings various benefits to the region, including creating upwards of 900 jobs, increasing money circulation, enhancing business opportunities at the port project site by selling products such as cement, and generating tax revenues.

She emphasised workplace health and safety issues at the site, praising the project managers for effectively addressing these issues. There are over two million working hours recorded by the project already, and there have been no accidents at work sites, the top administrator underlined.

Dr James Mataragio, the Energy Ministry’s deputy permanent secretary, said the EACOP project is unique in its benefits, including increasing national revenue in the construction and operational phases, billed at 2.3trn/- for project outlays. It also has 7,584 people employed up to now, and the number is expected to rise, he stated.

So far 146 Tanzanian companies have been involved in providing various services for the project, earning a total of $246mm as procurements for the project have facilitated purchases amounting to $462m, with local youth being trained in various technologies,

These skills will be handy as their inclusion is likely as the country builds other pipeline construction projects, this time ferrying natural gas to Kenya and Zambia.