Petroleum Africa
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Tuesday, December 26, 2006
The Joint Coordination Commission (JCC), the Kenyan-Ugandan organization responsible for overseeing the development of an oil pipeline from Eldoret to Kampala, has awarded the Uganda/Kenya pipeline project to Libya’s Tamoil Group.
The agreement is scheduled for signing on January 26, 2007, after which Tamoil is expected to prepare a detailed design of the project as well as comprehensive environmental and social impact assessment reports. Construction is due to start in the second half of 2007 and the project to take 12 months to complete.
According to a company statement, Tamoil has already mobilized some funds to finance the pipeline.
The oil pipeline is hoped to cut Uganda’s fuel costs and relieve the pressure on roads in the two countries exerted by the thousands of heavy fuel tankers that run on the Mombasa-Kampala highway, saving both Uganda and Kenya millions of dollars worth of road maintenance.
The fuel tankers also contribute significantly to pollution through the emission of exhaust gases; the pipeline will eliminate this problem.
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