Oil pipeline task force floated

DAILY NEWS Reporter

TANZANIA has resolved to establish a high-level coordinating committee consisting of private enterprises and government representatives to promote and develop a crude oil pipeline from Uganda to Tanga.

In the same development, the country has resolved to promote and develop a regional value corridor that shall link the Indian Ocean to the Atlantic Ocean. The resolutions come amid a competition from the neighbouring Kenya on the implementation of the project.

However, the Permanent Secretary in the Energy and Minerals Ministry, Professor Justin Ntalikwa, had earlier assured Tanzanians that given the country’s competitive advantage, optimism remains high that the deal will be carried out as previously planned.

Kenya is competing with Tanzania to execute the project. It wants the pipeline to be channelled from Hoima to its oilfields in Loikchar, Northern Kenya, to yet-to-be constructed Lamu Port.

While, the neighbouring Kenyans are resorting to using activists to derail the project, Uganda President Yoweri Museveni is on records insisting that he chose Tanzania due to security reasons.

President Museveni noted that even when President Uhuru Kenyatta of Kenya invited him last week, he had already reached an agreement with Tanzania. “Our oil cannot pass through Kenya because of security reasons,” Museveni was quoted as saying.

He said he had earlier struck a deal with Kenya over the pipeline but his advisors made him turn around because he feared some Kenyans may destroy the multi-billion project.

According to a media statement issued by the Energy and Minerals Ministry, the value corridor shall emanate from Tanga, Tanzania, through Uganda, DRC -- up to the Port of Banana in the DRC.

The statement was issued a day after ministry officials and business enterprises in the country met in Dar es Salaam to discuss the Uganda-Tanzania Crude Oil Pipeline Project.

During the meeting, the private sector was implored to explore all possible ways in which they can enhance their participation in the promotion and development of the pipeline from Hoima, Uganda, to Tanga, Tanzania.

The meeting that was chaired by Prof Ntalikwa also agreed that Tanzania should develop within the value corridor other anchor projects. Some of the projects to be developed within the value corridor are a Hub Port in Tanga Region, Cross-Border Gas Pipeline, Cross-Border Freight and Passenger Railway, Cross-Border Fibre Optic and Cross-Border Multi-Product Pipeline.

“The parties also resolved to promote and develop key strategic locations along the Value Corridor, new Corridor Anchor Towns (CATs), designed as Special Economic Zones,” reads part of the statement.

Key strategic locations to be promoted include centres of Training and empowering Small and Medium Enterprises (SMEs) to create Social-economic mobility and transformation and attract regional and international capital to further socio-economic transformation.

On their side, the private enterprises pledged their full commitment and support to ensure the success of the short -- and long-term interests relating to this project and the value corridor