(Ecofin Agency) - Tanzanian minister of energy, Medard Kalemani, announced the construction of the crude oil pipeline that will transport Uganda’s oil to the Tanga port on Tanzania for next April.

Known as the East African Crude Oil Pipeline (EACOP), this pipeline has been delayed since 2017, partly due to a tax dispute between the Ugandan government and some parties involved in the project. The minister's announcement was made last Friday at the National Assembly when his ministry's budget estimates and expenditures for the fiscal year 2020-2021 were tabled.

Before April 2021, the priorities will be to complete the host government agreements (HGA), a shareholders' agreement (SHA), a land lease agreement (LLA), the port agreement (PA) and the compensation of those whose lands have entered the project, the minister said.

The environmental impact study has already been carried out as well as the sensitization of the communities close to the pipeline. The pipeline will be 1,445 km long and is expected to cost $3.5 billion.

Olivier de Souza