Uganda’s Minister of Energy and Mineral Development, Dr. Ruth Nankabirwa, has secured crucial funding from China to keep the East African Crude Oil Pipeline (EACOP) project on track, whose completion is expected by 2025.
Nankabirwa made the revelation during a media briefing held at the ministry headquarters on August 21, 2024. She said that over UGX 11.1 trillion (USD 3 billion) in debt financing is required for the financial clause of the over UGX 11.8 trillion (USD 5 billion) pipe line that will transport Uganda’s crude oil from Kabale in Hoima, located in western Uganda, to the Congoliene Peninsular near Tanga port in Tanzania.
She further revealed having recently traveled to China to meet the Chinese President, Xi Jinping, and the Chinese banks over developments on financing of the EACOP.
“When I went to Paris, where I met with the TOTAL leadership at their headquarters, they showed me a list of nine European banks that have joined. I didn’t want to reveal the names, but this was a requirement from China not to let this project be seen as only Chinese bank-funded,” Nankabirwa said.
The minister noted that nothing will hinder the progress of Uganda’s oil and gas industry. The Chinese funding is a significant boost that puts the controversial EACOP project back on track for its 2025 completion goal.
