Fast track pipeline construction - Magufuli

Nov 09, 2017

Differences arose from the fact that both Uganda and Tanzania had different legal and tax regimes that needed to be harmonized

Tanzanian President John Pombe Magufuli has called on the investors involved in the 1,445km construction of the crude oil export pipeline from Hoima, in mid-western Uganda to Tanzania's Indian Ocean port of Tanga, to fast-track its construction process.

Magufuli noted that the 3-year timeline provided for was too long and means should be devised to reduce it. Magufuli who is in Uganda on a three-day visit, also lay a cross-border mark stone at Luzinga Village for the East African Crude Oil Pipeline and addressed a rally in Kyotera.

"Why should we wait for the proposed competition date of 2020 and yet you the investors have the money? The experts are here. You can hire as many contractors as possible and give each of them a section of the pipeline to construct or ensure you have both day and night shifts. After all you know that when we start pumping the oil you will get back your investment and returns," Magufuli said.

Addressing hundreds of people who turned up at the official opening of the Mutukula one stop border post in Rakai district on Thursday, Magufuli thanked President Yoweri Museveni for accepting the pipeline to go through Tanzania and assured him of security.

Magufuli and his Ugandan counterpart, Yoweri Museveni later commissioned the one stop border post at Mutukula.

Magufuli noted that other countries in the region wanted the same pipeline but that Museveni had listened wisely and opted for Tanzania.

Construction of the oil pipeline that is expected to commence early 2018, is projected to take 36 months. It's estimated at a cost of $3.55bn.

 

Magufuli said the Tanzania route was the cheapest because as a country they had decided not to charge Uganda a lot of money.

"The flow of oil in the pipeline requires pumping but from Singida to Tanga the flow will be by the force of gravitation. Tanga is well protected and there are no wave lines," Magufuli noted.

He also assured his Ugandan counterpart of total security insisting that the Tanzanians were calm people and the pipeline would not be disturbed under his administration or the next one. Magufuli noted that the Tanzanian people were ready for the project.

He commended Museveni for inviting him to Uganda to officially witness the launch of the pipeline project. He urged the Ugandans to support President Museveni because he was steering the country to the right path of development.

The border point will bring together immigration and customs officials from the two neighbouring countries under one roof at the border crossing point, eliminating double clearance of trucks and persons on both sides of the border.

TradeMark East Africa, with funding from UK's Department for International Development (DFID) and Global Affairs Canada, has funded the construction and operationalization of the Mutukula border point.

Magufuli noted that the discussions on the current 1445 Kilometer pipeline was not easy since it involved 3 parties who included Uganda, Tanzania and the investors. 

"I had to get into the discussions several times to talk to them whenever there was a hitch," he said.

He noted that by the time all the parties reached a final agreement, a lot of sacrifices had been made. He said some of the differences arose from the fact that both Uganda and Tanzania had different legal and tax regimes that needed to be harmonized.

"As Tanzanians we had to agree that we lost billions of shillings and we did this because of the love we have for Uganda. On September 11, the matter was bought before our Parliament and the project was endorsed," Magufuli noted.

He noted that the oil which was recently discovered in Uganda had been in there for centuries and even before the country Uganda came into existence. He commended Museveni for leading the path to oil discovery in Uganda and commended him for building local capacity that had facilitated the discovery.

He urged Museveni to give the team that participated in the oil discovery a special recognition because they had done a wonderful job.

residents agufuli and useveni listen to an official from otal  hoto by oderick himbazwePresidents Magufuli and Museveni listen to an official from Total E&P. Photo by Roderick Ahimbazwe

 

"We have been spending a lot of money on specialists from a broad but we now have our own local specialists," he added. He also noted that the same team was helping Tanzania discover oil.

This is Magufuli's second visit to Uganda, the first one being during the swearing-in ceremony of Museveni in May 2016.

Museveni on the other hand paid a state visit to Tanzania from February 25-26 and on August 05, together with Magufuli and laid the first foundation stone in Tanga for the East African Crude Oil Pipeline.

Magufuli later accompanied Museveni to Kyotera for a rally where he announced he had issued a directive to his government to remove all unnecessary roadblocks from Mutukula to Dar es Salaam that were frustrating the quick movement of vehicles transporting goods.

He also urged both the Uganda and Tanzanian living across the border to take advantage of the good relationship between the two countries for their benefit.

"Today we have opened up the border post and we now want passengers and trucks and vehicles to move to Tanzania without being disturbed. The trucks that have been spending 3 days here seeking clearance should stay for more than an hour and it shouldn't take more than 2 minutes to clear a traveller," Magufuli noted.

He said with the open borders, it will now be easy for the locals to trade and also urged them to take advantage of the open borders to intermarry.

"A Tanzanian national should feel free to move into Uganda and seek a partner and the same should be for Ugandans, "Magufuli said.

Magufuli also noted that with the discovery of oil in Uganda and gas in Tanzania both countries had enough resources to uplift their people. He also noted that they had agreed with Museveni to intensify the war against corruption stating that he had already started the fight in Tanzania.

Magufuli further noted that both Tanzania and Uganda were engaged in a series of joint ventures which included power generation in area of River Kagera.

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