Muloni signs Uganda, Tanzania crude oil pipeline pact

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The agreement was signed by Uganda’s energy minister, Hon Irene Muloni, and Tanzania’s new minister for Justice and Constitutional Affairs, Prof Palamagamba Kabudi on Friday.

Uganda and Tanzania have Friday finalised the inter-Government Agreement for the East African Crude Oil Pipeline deal.

The agreement was signed by Uganda’s energy minister, Hon Irene Muloni, and Tanzania’s new minister for Justice and Constitutional Affairs, Prof Palamagamba Kabudi on Friday.

Hon. Prof. Sospeter Muhongo MP, the Tanzania Minister of Energy and Minerals, was expected to sign but he was fired a day ago over corruption.

Speaking on the signing ceremony, Muloni said Uganda entered into an agreement with Total on how to commercialise this crude oil.

Ministers and officials at the signing ceremony

“Today’s occasion is an important step. The size of my smile has increased today after the signing of this oil pipeline agreement.”

She added: “I am extremely happy that the two Governments of Uganda and Tanzania have finally made this historical agreement.”

Hon Muloni said the project is estimated cost for this project is $1.55bn and that infrastructure in both countries is already going on.

Eng Muloni excited at the agreement

She said the project will also provide 10,0000 jobs to nationals, especially, in regard to provision of local content.

“By 2020, oil should be flowing now that this agreement has been signed today between Uganda and Tanzania.”

The two ministers sign the agreement

In his turn, Prof Kabundi said today marks a great day in history for the Republic of Tanzania.

“I thank the President of the United Republic of Tanzania, Magufuli for accepting me to sign this agreement. We also thank the Government of China for coming in at this critical time to help us when we need this development.”

He added: “Government of Tanzania has no hesitation in establishment of this project. If it’s finishing it by 2020. It will be 2020.”

Prof Kabundi speaking on the signing ceremony

On May 21, 2015, President John Magufuli and President Yoweri Museveni signed the East African Crude Oil Pipeline Agreement in Dar es Salaam.

“The agreement is an expression of our intent to go ahead with the construction of the 1,400km oil pipeline from Hoima in Uganda to Tanga Port in Tanzania,” Museveni said.

He said the project shows that East Africa can do things if it wants. It is a realisation of economic and social development of our countries.

Museveni and Magufuli sign the agreement

“It is also a strategic way of East African integration and will strengthen our relationship. Once we found oil in Uganda, my idea was that we refine and sell it in the country but I was told since consumption is low in Uganda, we must find a way of transporting it to the other markets. It’s why we agreed to this project.”

Museveni said he chose to partner with Tanzania because of its relative stability, favourable land system and because Tanga Port is protected from ocean waves which makes oil transportation easy.

The two leaders then tasked their attorney generals to finalise an Inter-Government Agreement which would be signed by energy ministers on today Friday May 26th, 2017 [as it has happened].