Rwanda, Kenya, Uganda seek oil pipeline contractor

By: Kenneth Agutamba

The first phase of the proposed Eldoret-Kampala-Kigali pipeline for refined petroleum products will end in 2017. (Internet photo)

The governments of Rwanda, Uganda and Kenya under the Northern Corridor integration projects have started the search for a contractor to undertake the construction of the proposed Eldoret-Kampala-Kigali pipeline for refined petroleum products.

According to a joint public procurement notice, the three governments are sourcing for an experienced contractor both locally and internationally.
The successful bidder will undertake the engineering, procurement, construction, testing and commissioning of the pipeline, a venture whose first phase is expected to be completed within three years.
Monique Mukaruliza, the national coordinator of the Northern Corridor Projects, said the construction of the oil pipeline will be completed by 2017.
The first lot will cover the 350-kilometre distance between Eldoret and Kampala while the second will connect the 434km distance to Kigali, according to the procurement notice.
According to the technical specifications, the pipeline linking Kampala and Kigali will have storage terminals in Kampala, Mbarara and Kigali.
It will also have mainline pumps, intermediate pump stations and road/rail loading facilities for tankers at Mbarara in Uganda and Kigali.
Asked about Rwanda’s role in the implemenation of the project to which all three states pledged full support, Mukaruliza said: “At this stage, Rwanda, like the rest of the tripartite member states, has contributed toward funding feasibility study, tender document preparations and is committed to contributing its share for the project implementation.”
The feasibility study cost $2 million and, according to the Permanent Secretary in the Ministry of Infrastructure, Christian Rwakunda, this cost was shared equally among the partner states.

New fuel tanks under construction in Gasabo District.(Timothy Kisambira).

In January, this year, a London-based firm, Penspen, which specialises in engineering and management services to the oil and gas industry, was awarded the contract to undertake the pipeline’s feasibility study.
“The feasibility studies were finalised last month, and yesterday the tendering process for the engineering, procurement and construction of the pipeline was launched,” Mukaruliza said yesterday.
It’s not clear how much the project will cost given that the allies are collecting bids of which the bidder with the lowest cost is most likely to be favoured but under the tripartite agreement, the three governments “agreed to equally source funds and develop the entire project together and Ministers for Finance of the three partner states are currently mobilising funds for the implementation of the project,” Mukaruliza said.
As per the current project implementation plan, Mukaruliza says the first phase will connect Eldoret-Kampala-Kigali and this is supposed to be commissioned in March 2017.
The second phase will be an upgrade of the pipeline depending on the demand..
In Rwanda, the pipeline will enter through Kagitumba in Nyagatare District, Eastern Province to Rusororo Sector, Gasabo District, North-East of Kigali where the inland terminal will be located.
Rwakunda said there will be need for the right of way where the pipeline is expected to pass.
The official also dispelled rumours that thousands of people are to be displaced by the project saying, “not many’ will be affected because the corridor won’t be very big.”
The Permanent Secretary also adds that those to be affected will be compensated by the government.
Once completed, the three-leg pipeline is anticipated to significantly help facilitate Rwanda’s petroleum transportation from Nairobi, currently done by road oil tankers.
“We expect huge benefits from this project such as increase in supply, reduced transport costs as well as employment opportunities for Rwandans,” Mukaruliza says.
The other most important factor, she adds, is that once complete, the Kigali terminal will serve as the supply port to the Eastern Part of DR Congo and Burundi.
The pipeline is one of several projects of the Tripartite Initiative (between Kenya, Uganda and Rwanda) that aims to accelerate regional development through investment in infrastructure, trade and other economic integration projects.
Other major projects lined up include the $3.5 billion Mombasa-Kampala-Kigali standard railway and a regional power transmission line.