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PUBLISHED ON March 23rd, 2016

No more jostling in Uganda-Tanzania oil pipeline deal

If economies had faces, then those of Uganda and Tanzania would be wearing smiles right now. The two neighbours reached a milestone when energy ministers from the nations penning a project implementation plan (PIP) on a crude oil pipeline linking them.

Once completed, the project would enable over 200,000 barrels of oil to be transported per day from Uganda’s Lake Albert area to Tanzania’s Tanga port on the Indian Ocean coast ready to be supplied to the world.

When signing the pact, Uganda’s Energy Minister, Irene Muloni and Tanzania’s Energy and Minerals Minister, Prof Sospeter Muhongo expressed the two state’s desire to fast track the implementation of the project, saying it is an important undertaking for the two nations in the region.

Hammering the nail home, Adewale Fayemi of Total E&P Uganda, the French firm undertaking the project, cleared fears over its possible delays, saying there was no likelihood as the funds to build the pipeline are already available.

President Magufuli was earlier quoted as having challenged Total to see if completion of the project could be expedited and take less than the years that have been planned.

It is rather encouraging to learn that the political will is not wanting on both countries involved in the implementation of the project which, at a certain point, seemed to have been mired in high level regional politicking.

On the one hand, neighbouring Kenya had her eyes on the project with the ambitious vision of linking the pipeline with Ethiopia and South Sudan through a railway line linking Juba with Lamu as the new proposed port.

On the other hand, security concerns may have been the reason for Uganda to have had an about turn and chose Tanzania over Kenya. Since Kenya sent troops to quash Al-Shabaab in Somalia, the former has been a target for retaliatory attacks.

Similarly, Ethiopia has never been too cozy with Somalia thus opted to use the Asmara port in Eritrea instead. While at it, South Sudan still seems to be stuck with Sudan.

Whether Al Shabaab would only limit its incursions on Uganda and Kenya for taking their troops to Somalia and leave Tanzania alone remains to be seen but still it highly unlikely.

The fact shall remain that when it comes to security, Tanzania is the best option for Uganda to transport its crude oil. These despite Kenya’s stealthy attempts at having the Ugandans revisit their position and thus decision.

Tanzania also an ace up her sleeve; she has a great pedigree of having managed other pipelines for many years including the Tanzania-Zambia (TAZAMA) pipeline (stretching over 1,500kms) linking Dar es Salaam with Lusaka, Zambia.

Another invaluable experience is the Songo Songo-Dar es Salaam gas pipeline stretching over 360kms and of late the Mnazi Bay-Dar es Salaam pipeline, also transporting gas from the border with Mozambique to the commercial capital.

What Uganda and Total needed and still need most is the security of their crude oil pipeline which all believe could be guaranteed most by Tanzania.

At this point in time, there is therefore no cause for other countries to go around trying to pluck feathers and stir unnecessary matters. It is game over let’s put the tricks to rest and watch as the implementation of the project starts.

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Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.

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