Last October, Uganda's Energy Minister Ruth Nankabirwa revealed that stakeholders in the East African Crude Oil Pipeline (EACOP) project had had to restructure the financing to overcome difficulties in obtaining loans from Western banks. Initially planned with a structure of 60% debt and 40% equity, the project is now based on an almost equal 50/50 split.
Despite these financial adjustments, construction of the EACOP, a $3.55 billion pipeline linking oil-rich Albertine Graben to the port of Tanga in Tanzania, is progressing according to plan. With a length of 1,443 kilometres, this ambitious project has reached important milestones.
According to Minister Nankabirwa, 1,100 kilometres of pipe have been delivered to Tanzania, 90 kilometres of which have already been welded on site. In Uganda, more than 10 kilometres of pipe have also been welded. Other notable achievements include the completion of a thermal insulation plant in Tanzania, as well as civil engineering work at pumping stations, main camps and pipeline construction sites.
Construction of the EACOP is being led by China Petroleum Pipeline Engineering Co, which began civil engineering work in 2024. Once completed, the pipeline will transport Ugandan crude oil to international markets, making the country's oil reserves marketable. Since the discovery of 6.5 billion barrels of oil in 2006, of which 1.4 billion were deemed commercially viable, Uganda has been counting on this project to boost its economy.
Minister Nankabirwa stressed the economic and strategic importance of EACOP. The project is expected to create thousands of jobs, generate significant revenues for Uganda and Tanzania, and enhance energy security in the region. "The EACOP is much more than a pipeline. It represents a unique opportunity to stimulate economic growth and ensure a sustainable energy future", she said.