EACOP vs Lamu pipeline

Geza Ulole said:
Hii maneno si level yako mzee! soma makala niliyokutumia! Wanajeshi wa Rwanda labda DRC ila Mozambique sidhani! France imefungua ubalozi wake Kigali baada ya mahusiano ya kibalozi kati France na Rwanda kkutokuwapo kwa muda mrefu!
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France, Tanzania for a quantum leap in economic, trade, and bilateral relations​


France pic1

In commemorating today the French National Day, the Ambassador of France to Tanzania, H.E. Frédéric CLAVIER, gave an exclusive interview to The Citizen and reasserted France eagerness to boost...​

Mpoki pic

BY MPOKI THOMSON​


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Wednesday July 14 2021

In commemorating today the French National Day, the Ambassador of France to Tanzania, H.E. Frédéric CLAVIER, gave an exclusive interview to The Citizen and reasserted France eagerness to boost bilateral economic relations.


Question: You’re Excellency, what does Bastille Day represent to the French people and the world?

F.C.: “Historically speaking, Bastille Day celebrates the victory of the people against injustice and an oppressive political system lead-ing to the sovereignty of the whole nation. Since then, Bastille Day has become an occasion to remind us the core values and motto of the French nation: Liberty, Equality, and Fraternity. In this sense, France and Tanzania share many values, thus enabling a mutual understanding and a trustful relationship since the independence of Tanganyika in December 1961.

This trust that we have built throughout the years allows us to enjoy a strong cooperation on various and important subjects, economic, political, cultural and soci-etal. The most recent example is our work together for the success of the Generation Equality Forum, held in Paris between June 30th to July 2nd, with the exceptional visit of the Vice-President, H.E. Dr. Philip Mpango, embodying Tanzania’s commitments to gender equality.”

Q: You’re Excellency, could you tell us what is the status of the France-Tanzania economic and business relations?

F.C.: “Bilateral trade between France and Tanzania is increasing but is not, in my opinion, represent-ative of the quality of our bilateral relations, even though we have witnessed a constant growth over the past few years.

In 2020, the total amount of trade between France and Tanzania rep-resented 150 million dollars. More than 90% of French exports are based on 4 major sectors: mechanical equipment, electrical, electronic and IT equipment; while imports from Tanzania are mainly from the agro-food sector, forestry, and fishing industry.

In order to pave way to deeper and stronger economic bilateral relations, the French-Tanzanian Chamber of Commerce (FTCC) was launched in January 2020 with the objective to promote partnerships between French and Tanzanian companies.

I am convinced that our bilateral exchanges will continue to increase in the coming years as we attest President Hassan’s efforts to put economy at the center of Tanzania’s foreign policy, her desire to improve the business climate in the country and to foster East African economic integration.”

France pic2

The French Ambassador to Tanzania, Frédéric CLAVIER accompanied by the President of the French-Tanzanian Chamber of Commerce (FTCC), Mr. Christophe Darmois (left) and by the Team France on the steps of the Embassy. PHOTO | LOVENESS BERNARD

Q: Which are the main sectors the French companies have heavily invested in recently in Tanzania?

F.C.: “Today, there are more than 40 French companies established in Tanzania, including 13 multinational firms. Over the past few years, French companies have mainly invested in the energy, transport and new technologies sectors.

I cannot quote all companies but, for instance everybody heard about the East African Crude Oil Pipeline (EACOP), with the participation of TotalEnergies. This pipeline which will transport the Ugandan oil to Tanga for export to world markets is one of the most ambitious ongoing project in East Africa. It will run through 8 regions in Tanzania and create about 10 000 jobs for Tanzanians.

Let me also shed light on Maurel & Prom, which operates since 2006 one of the 3 gas fields in operation in Tanzania, or Engie Energy Access, created in 2020 to bring together under a single entity its off-grid electrification activities: construction of mini-grids and distribution of home solar kits.

In the transport sector, CMA CGM manages 12% of the carrier services in Tanzania, in the ports of Dar es Salaam, Tanga, Mtwara and Zanzibar. Bolloré Transport & Logistics has structured its activities around the dry port of Dar es Salaam and freight transit by road to landlocked countries in the west. Last but not least, Airbus delivered 2 A220-300 planes to Air Tanzania in 2018 and 2019 and plans to deliver 2 additional aircrafts within the year.

Finally, let me mention the company Carwatt which transforms thermal cars into electric vehicles. Established in Tanzania via E. motion Africa, created in 2019, it aims at electrifying the bus network of Dar es Salaam and all the safari vehicles circulating in the National Parks.”

Q: Beside the economic support, what are the main projects France has implemented in terms of development?

F.C.: “The Agence Française de Développement (AFD) has been working with Tanzania for 25 years, mainly focusing on financing infrastructure in the energy, water and transport sectors. The financial commitments have more than doubled in 3 years, reaching $180 million every year. That shows France’s confidence in the development capacity of Tanzania.

For the next years, the strategy is to remain focused on these 3 sec-tors but also to diversify its financing towards biodiversity conservation and a climate resilient and sustain-able agriculture.”

Q: France has been very active to support developing countries, particularly in Africa, to cope with the impact of the COVID-19. How did France support Tanzania?

F.C.: “The French President Emmanuel Macron has hosted last May in Paris a Summit dedicated to the Financing of African Economies. This was the 1st international Summit attended by President Samia Suluhu Hassan (virtually). The objective was to decide on ways to help face up to the health and economic crisis of the pandemic in Africa. President Macron called for an “African New Deal”, proposing that rich countries reallocate part of their Special Drawing Rights (SDR) from the IMF to African economies to raise at least $100 billion for Africa.

Few days later, on behalf of the French government and in presence of the PS of the Ministry of Finance and Planning Mr. Emmanuel Tutuba, I signed a Debt Service Suspension Initiative (DSSI). The initiative, launched by President Macron, aims to delay debt repayment, freeing up cash that governments can use to mitigate the economic impact of COVID-19.

Finally, the theme of the 28th Africa-France Summit, taking place in France beginning of October, will be focused on “Better cities to better lives”. It will aim at developing new political collaboration and economic partnerships to share knowledges on sustainable cities and territories, but also in other fields, such as healthcare, education, urban planning and culture.”


www.thecitizen.co.tz

France, Tanzania for a quantum leap in economic, trade, and bilateral relations

In commemorating today the French National Day, the Ambassador of France to Tanzania, H.E. Frédéric CLAVIER, gave an exclusive interview to The Citizen and reasserted France eagerness to boost...
www.thecitizen.co.tz www.thecitizen.co.tz
 

Key training on East Africa oil pipeline chances issued​



THURSDAY JULY 22 2021​

Pipeline pic

Summary​

  • The second and last batch of training involved 16 villagers selected from Mabanda, in Handeni Town Council, Tanganyika Village in Muheza District ended in Tanga, at the weekend.


By George Sembony
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Tanga. As the date for the actual construction of the 1,443 kilometre crude oil pipeline draws closer, a Tanga-based Northern Zone Civil Society Organisations (CSOs) Coalition has been training animators in villages along the pipeline route.

The second and last batch of training involved 16 villagers selected from Mabanda, in Handeni Town Council, Tanganyika Village in Muheza District ended in Tanga, at the weekend.

Some 40 animators from five districts have so far been trained under a project: ‘Accountability through Active Citizenship’, being implemented by the coalition, Northern Coalition for Extractives and Environment (NCEE) with financial support from Oxfam Tanzania.

Project coordinator Devota Mbenna said the first batch of the training involved selected animators from Singida, Nzega and Misenyi.

The five districts, Misenyi, Nzega, Singida Rural, Handeni Town Council and Muheza, are some of the eight districts where the $3.5 billion project would pass.

Ms Mbenna said the training was based on results of an independent community–based human rights impact assessment on social, economic, environmental, cultural and human rights in the local communities along the pipeline. “The aim was to understand the potential impacts of the project and determine the gap between the human rights in principle and the actual satisfaction of the rights in practice by the local communities in the ongoing project,” Ms Mbenna said.

The assessment findings indicated numeral risks and challenges highlighting actions to be taken by different actors including the government at national and local government authorities’ level as well as companies and CSOs.

This, Ms Mbenna said would eventually lead to the best appreciation by the local communities of the project that increases Foreign Direct Investment (FDI) in Uganda and Tanzania by 60 per cent during the construction period. NCEE chairman Josiah Severre pointed out that local communities indicated high expectations on the project including employments in different fields and infrastructure development.

Mr Severre said that animators have a duty to reduce these high expectations but also to discover, initiate encourage their development. “There are numeral opportunities that could be explored by the local communities to optimize their engagement and improve livelihood,” he said.

One of the challenges encountered in the assessment is lack of transparency by the government and investors to the local communities on available opportunities that the local citizens can win but also preparedness, Mr Severre revealed.

According to training facilitator Kefar Mbogelo, capacity building in the local communities is essential in order to maximize transparency and accountability by decision-makers.

Mr Mbogelo, who is the coordinator of Programmes in the Oxfam added that this would influence local communities involvement in the project and enjoy benefits and opportunities directly or indirectly.

The Handeni Town Council Community Development officer Fred Mpondachuma emphasized the critical role that could be played by animators in communities asking them to become change agents.

Mr Mpondachuma further called for a serious assessment of how districts have prepared themselves for the opportunities and challenges to be brought by the pipeline project.

He mentioned such areas as a possible impact on health facilities and services due to an increase in the population and also impact at the social and economic levels including increased disease incidences and pregnancies among young girls.


www.thecitizen.co.tz

Key training on East Africa oil pipeline chances issued

As the date for the actual construction of the 1,443 kilometre crude oil pipeline draws closer, a Tanga-based Northern Zone Civil Society Organisations (CSOs) Coalition has been training...
www.thecitizen.co.tz www.thecitizen.co.tz
 




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Oil pipeline company starts work next month​



TUESDAY AUGUST 03 2021​

home07pix

EACOP general manager, Mr Martin Tiffen. PHOTO/COURTESY

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Summary​

  • The Eacop is a 1,445km long heated pipeline, a key component of the commercialisation of Uganda’s oil, which will transport crude oil from the Lake Albert oil production sites at Tilenga and Kingfisher projects in western Uganda to Tanga in Tanzania.


By Frederic Musisi
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The holding company to fast track development of the proposed East African Crude Oil Pipeline (EACOP) is expected to come into force by September while construction is scheduled to kick off in the second half of 2022, officials have said.

The EACOP general manager, Mr Martin Tiffen told Daily Monitor in an interview that once active, the company will take over all pipeline related operations from the French oil firm TotalEnergies EP, formerly Total E&P, which has been running the show since 2016 when Uganda settled for the southern route through Tanzania as “least cost” to transport oil to the international market.

“First and foremost, ‘up and running’ implies having the new company, with its management, staff, offices, IT systems, bank accounts, etc, everything that EACOP project needs in order to function. That’s one key part of the puzzle,” Mr Tiffen said.

The EACOP holding company owners as stencilled in Shareholders Agreement signed on April 11 at State House, Entebbe, are; Uganda National Oil Company (Unoc) with 15 per cent, Total Holdings International B.V. with 62 per cent, Tanzania through its national oil company, TPDC, with 15 per cent, and China’s Cnooc with 8 per cent.

The pipeline runs 1,443km from Hoima in mid-western Uganda to Chongleani terminal, at Tanga port at the Indian Ocean in Tanzania. The project cost is estimated at $3.55b (Shs13 trillion).

Mr Tiffen revealed that they are currently fast tracking land acquisition both in Tanzania—where the process is a lot faster as land belongs to government—and in Uganda, where the process was imperilled by the back to back lockdowns to contain spread of Covid-19.

“Nonetheless,..[in Uganda] we’re now in what’s called the disclosure process of both the Resettlement Action Plan, and the valuations; we’re about 1/3 way through, which should allow us to start the actual compensation process later this year,” he added.

The Ugandan section of the pipeline runs through 179 villages in 10 districts—Hoima, Kikuube, Kakumiro, Kyankwanzi, Mubende, Gomba, Ssembabule, Lwengo, Kyotera, and Rakai.

In April, Uganda, Tanzania, TotalEnergies, and Cnooc, signed off the key project development agreements including the Shareholders Agreement, and Tariff and Transportation Agreement.

TotEnergies, Cnooc and Uganda also signed the Host Government Agreement (HGA), which lays basis for development of the pipeline, and later on May 12. Tanzania signed its version of HGA with the two oil companies.

Mr Tifften, however, indicated that “these agreements require some additional work in order to be fully implemented, and that’s what we’re working on as we speak with both governments and the other shareholders. An example of this is what we call enabling legislation which is one of the key requirements for implementation.” See interview excerpts below

Since signing of the agreements on April 11, and later in May. What’s the update?

EACOP is an integral part of a co-development of three projects, which are EACOP itself, together with Tilenga and Kingfisher. It is Tilenga and Kingfisher that will drill the wells and process the oil to export quality.

Part of the production will be made available to the refinery project, and the rest of the daily production will be sent via EACOP to be sold into world markets.

Physically EACOP is 80 per cent in Tanzania in terms of length, and 20 per cent in Uganda. This requires the project to have a legal and commercial framework across the two countries.

These agreements require some additional work in order to be fully implemented.

Our current timetable is to have the EACOP company fully up and running by September.

Since 2016, it’s been TotalEnergies taking the lead on EACOP project, and whilst we continue to do that, we want the EACOP Company itself, in which all the pipeline shareholders have a stake, to come into force; once EACOP Company is fully constituted and operational it will take the lead on the project.

When you say ‘up and running’ by September does it include construction?

One key part of the puzzle is having the company operational. The second key activity is land acquisition.

We have pledged to undertake this exercise whilst respecting both Ugandan and Tanzanian law, and also international standards.
I should clarify that EACOP project will never own the land it traverses nor that which houses all its other facilities; this land will be leased from the two governments.

To acquire this land, there is a two-step process; mapping, valuation & preparation followed by the actual compensation & acquisition.
In Tanzania, we’ve been progressing because the first land that the project needs is for the coating plant, which is located in the Nzega District in Tabora region, Tanzania.

This is called Priority Area land, and in June, we started signing the compensation agreements with the Project Affected Persons.
If all goes as planned, we should be in position to start the preparation civil works activities for the coating plant in Tanzania by about September, this year.

So, when do actual works start; you said earlier this year which seems improbable?

The common objective for both the Upstream and EACOP is that we should be ready for first oil export in Q1 2025. That is three and a half years from now. By end of this year I think the most visible thing in Uganda will be the land acquisition.

Similarly, to the Tilenga project, we are also finalising what we call the level one contracts for EACOP. These cover the key procurement items as well as the construction contracts for the pipeline, pumping stations and terminal. Therefore, in the next few weeks, we’ll be concluding that with all our shareholders.

The first thing to be done is to buy the line pipe that will be manufactured in various pipe mills around the world.

As this is a manufacturing process, it will take a bit of time, let’s say six months before the first pipe is ready to be shipped to Dar-es-Salaam, and moved to the coating plant.

Coating should start in the first half of 2022 and once we’ve built up a stock of say 300 kilometres of coated pipe, we will then deliver that to various piping yards that we have along the right of way in both Uganda and Tanzania.

In parallel with the conclusion of the land acquisition, when we have land access, and the coated or insulated pipe in sufficient quantities, then construction activities like the real pipe laying will begin in both countries around the second half of next year, 2022.

Besides the land acquisition which is never short of drama in Uganda, what would you say are the other lingering challenges, notwithstanding Covid?

Our target is to have EACOP fully up and running in September. And that’s what we’re focusing on.

Once EACOP is a legal entity, a separate Company, and with shareholders, its mandate will be to execute the project.

There are a lot of moving parts, and our job is to make sure that all these parts move in a coordinated manner.

At the signing of agreements on April 11 we expected to hear closure or final investment decision, announcing big monies and where its coming from, but that didn’t happen.

Recently we have seen reports of large banks dissociating from the project especially over carbon concerns.

EACOP project funding has always been based on a two-pronged concept; firstly from the shareholders themselves bringing what is called ‘equity’ in proportion to their shareholding and secondly, external lending to the project by banks.

So, it is a mixed financing strategy we are pursuing. Despite everything you read, and without going into details, we are confident that we can execute all our plans, including the financing plans for this project.

So, you are saying it’s premature to talk about financing?

No, what am saying is that we have been running a process on financing intensively and we remain confident that we’ll obtain the required financing. Thus it is not a stumbling block in in terms of project execution.

Are there things you expected the government to be doing or have done by now?

If you’re developing the natural resources of a country, and transporting those resources across that country, and then across another, our biggest interface, or rather main ‘customers’ if you will, are the Host Governments, their Ministries and Agencies.

So we are in a continuous dialogue with them about what we are doing, what they require from us and vice versa.

Our workings together are governed by the Host Government Agreements which set out some of the things they have to do for us (for instance authorisations), and equally some things we have to do for them.

So, going forward, how committed are you to these timelines?

You have heard the two Presidents of Uganda and Tanzania and the TotalEnergies Chairman & CEO speaking and that is the commitment.

www.monitor.co.ug

Oil pipeline company starts work next month

Once active, the company will take over all pipeline related operations from the French oil firm TotalEnergies EP, which has been running the show since 2016
www.monitor.co.ug www.monitor.co.ug




HIS TAKE
All pipelines will be imported via Dar port!


CC: Tony254
 
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