Tanzania has reached an agreement with Uganda to fast-track the execution of a crude oil pipeline project between the two countries as well as grant multiple contractors the construction contract.

Let’s be reminded that in April, Uganda announced that it would construct an oil pipeline through Tanzania instead of Kenya. The decision to fast track works on the pipeline was agreed during talks between the two Heads of states in Kampala on Thursday.

Choosing a route is important for oil companies in order to make a final investment decisions on the development of reserves found in Uganda and Kenya, which are part of a series of hydrocarbon discoveries on Africa's eastern coastline. Meanwhile, Tanzania has also discovered gas offshore.

“I suggest we use the design and construct model to speed up implementation of the 1,410-km pipeline project ... and award contracts to five or six different contractors to build different sections of the pipeline at the same time. By doing that we will significantly reduce the time needed to build the oil pipeline and the entire project can be completed within just one year,” Magufuli's office told Reuters.

Ten years ago, Uganda found crude oil near its border with the Democratic Republic of Congo but is yet to start production after constant delays.

Anita Fatunji