Transports

Kenya: Uganda Pipeline deal still in effect

Wednesday, 14 October 2015 19:32

The Cabinet Secretary for the National Treasury Henry Rotich has de-emphasized concerns over Kenya losing the Hoima-Lokichar-Lamu crude oil pipeline deal with Uganda.

This was subsequent to reports that Uganda had signed an agreement with Tanzania to examine options for a pipeline from Hoima to Tanga Port of Tanzania.

The president of the two countries had met In August and had agreed on the construction of a 1,500 km pipeline for export from Uganda to Mombasa, India.

According to Rotich, Kenya still plans to participate in the deal adding that the ministry has had meetings with Uganda to carry out the deal.

We are currently preparing an expression of interest for a detailed design and pre-front end engineering.” He told the Star newspaper.

Uganda seeking another route was due to the four conditions it gave Kenya namely tariffs, security, financing and no delay.

Concerns were raised about the laying of the pipeline in Kenya’s northern part which is close to the Somalian border widely known for Al-Shabaab attacks.

Nevertheless, the country is eager to get a pipeline to export its reserves which are estimated at 6.5 billion barrels.

The Hoima-Lokichar-Lamu pipeline deal will be jointly carried out by the governments of Kenya, Uganda and Rwanda and organized by Kenya Pipeline Company on behalf of the Kenyan government.

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