Tanzania Private Sector Urged to Invest in Uganda Oil Refinery
The Minister of Energy and Minerals
of Tanzania, Prof. Sospeter Muhongo urged the private sector to invest in the
upcoming oil refinery in western Uganda. The oil refinery will process the oil
for exports within the East African Community (EAC). This was indicated in a
recently published press release by the Ministry of Energy and Minerals of
Tanzania. The country has committed to pay USD150.4m for 8% ownership in the
refinery. The Government will be involved in its construction through Public
Private Partnerships (PPPs) with the private sector. The project is worth
USD2.5b. A private consortium will own 60% of the refinery. Uganda has
allocated the remaining 40% of the shares to the EAC member states of Burundi,
Kenya, Rwanda, Tanzania, and Uganda itself. The construction of the Uganda oil
refinery is part of the East African Crude Oil Pipeline (EACOP) project. EACOP
will transport crude oil from Uganda’s oil fields to Tanga, Tanzania, a port on
the Indian Ocean. The pipeline will be 1,443km long with the capacity of
carrying 200,000 barrels per day and total cost of USD3.55b. The Uganda
refinery will be built to process the oil needed locally and regionally, while
the rest will be exported via EACOP to the Indian Ocean.
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