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ALVAR MWAKYUSA 29 MARCH 2016
Daily News.
TANZANIA is highly optimistic of striking an agreement with Uganda over construction of the 1,410-kilometre crude oil pipeline from Hoima, given the former’s competitive advantage.
It is against this backdrop that the country is sending a delegation of 40 businesspersons to Uganda to discuss business opportunities aligned to the ambitious project with government officials in Kampala.
“We understand that there is a competition from some of our neighbours to implement the project. But we are 98 per cent sure of striking a deal,” the Permanent Secretary in the Ministry of Energy and Minerals, Professor Justin Ntalikwa, told reporters in Dar es Salaam.
Neighbouring Kenya is as well competing with Tanzania to execute the project. It wants the pipeline to be channeled from Hoima to its oilfields in Loikchar, Northern Kenya, to yet-to-be constructed Lamu Port.
“Tanzania boasts of conducive environment to lay out the pipeline and this gives us a competitive advantage compared to the Kenyan route. It will be less costly to use the Tanga port,” Prof Ntalikwa boasted.
The PS went on to point to the fact that Tanzania is more stable and secure with vast know-how in implementation of pipeline projects.
This includes the 1,710-km Tanzania-Zambia pipeline (Tazama), which was commissioned in 1968 to transport crude oil from the Dar es Salaam Port in Tanzania to Ndola in Zambia as well as the 542-km pipeline from Mtwara to Dar es Salaam, which was launched last year to convey natural gas.
Other projects include a conduit from Songo Songo islands through the Indian Ocean to Somanga and a parallel pipeline from Somanga to Dar es Salaam.
“It should be noted as well that Tanga Port is a natural anchorage with deep waters compared to Lamu and Mombasa ports in Kenya. Based on these facts, I can confidently declare that Tanzania is highly confident of striking the deal,” he stressed.
He added that the government of Tanzania was closely engaging the government of Uganda on the project and “there is hope that its implementation will start as planned”. The PS and high-ranking officials in the ministry held a meeting with local business persons yesterday to explore potential opportunities to come with implementation of the mega scheme.
The head of the business delegation, Dr Gideon Kaunda, said the team will leave for Uganda today where they expect to meet President Yoweri Museveni and other officials.
“This is a business competition and we are ready to work jointly with the government to secure the pipeline project given its benefits to the country,” Dr Kaunda, who is as well the Executive Chairman of Pangaea Securities (East Africa) Limited, noted.
The business mission, Dr Kaunda explained, seeks to furnish the Ugandan government on the advantages of channeling the pipeline through Tanzania to Tanga port. “We have the Tanzania Petroleum Development Corporation (TPDC), which boasts of trained human resources to carry out such projects. It is high time Tanzania started to think of opportunities to be aligned with the venture,” he noted.
On the other hand, Prof Ntalikwa admitted that a number of high-ranking officials from Kenya, who had ‘sneaked’ into the Ugandan delegation that had been invited for a tour of the Tanga Port, were blocked from accessing the facility.
“It is true that the Kenyan officials were not allowed to visit the port because we had invited only Ugandan officials,” he stated.
The delegation from Kampala, which was allowed entry was led by Uganda’s Energy Minister Irene Mulomi while that of Kenya, which was blocked was under the leadership of Kenya’s Energy Cabinet Secretary Charles Keter.
Last Monday in Nairobi, President Museveni and Uhuru Kenyatta of Kenya held a meeting in which they agreed to meet after two weeks to allow technical officials from the two countries to harmonise their presentations.
Among the issues to be considered by the technical teams include which route is more cost effective, the terrain, the current proven reserves, which will have an impact on the size of the pipeline and viability of Lamu, Mombasa and Tanga ports as export options.
Through the Tanzania route, the project is expected to cost 4 billion US dollars while the same will cost 4.5 billion US dollars through the Kenyan route.
Daily News.
TANZANIA is highly optimistic of striking an agreement with Uganda over construction of the 1,410-kilometre crude oil pipeline from Hoima, given the former’s competitive advantage.
It is against this backdrop that the country is sending a delegation of 40 businesspersons to Uganda to discuss business opportunities aligned to the ambitious project with government officials in Kampala.
“We understand that there is a competition from some of our neighbours to implement the project. But we are 98 per cent sure of striking a deal,” the Permanent Secretary in the Ministry of Energy and Minerals, Professor Justin Ntalikwa, told reporters in Dar es Salaam.
Neighbouring Kenya is as well competing with Tanzania to execute the project. It wants the pipeline to be channeled from Hoima to its oilfields in Loikchar, Northern Kenya, to yet-to-be constructed Lamu Port.
“Tanzania boasts of conducive environment to lay out the pipeline and this gives us a competitive advantage compared to the Kenyan route. It will be less costly to use the Tanga port,” Prof Ntalikwa boasted.
The PS went on to point to the fact that Tanzania is more stable and secure with vast know-how in implementation of pipeline projects.
This includes the 1,710-km Tanzania-Zambia pipeline (Tazama), which was commissioned in 1968 to transport crude oil from the Dar es Salaam Port in Tanzania to Ndola in Zambia as well as the 542-km pipeline from Mtwara to Dar es Salaam, which was launched last year to convey natural gas.
Other projects include a conduit from Songo Songo islands through the Indian Ocean to Somanga and a parallel pipeline from Somanga to Dar es Salaam.
“It should be noted as well that Tanga Port is a natural anchorage with deep waters compared to Lamu and Mombasa ports in Kenya. Based on these facts, I can confidently declare that Tanzania is highly confident of striking the deal,” he stressed.
He added that the government of Tanzania was closely engaging the government of Uganda on the project and “there is hope that its implementation will start as planned”. The PS and high-ranking officials in the ministry held a meeting with local business persons yesterday to explore potential opportunities to come with implementation of the mega scheme.
The head of the business delegation, Dr Gideon Kaunda, said the team will leave for Uganda today where they expect to meet President Yoweri Museveni and other officials.
“This is a business competition and we are ready to work jointly with the government to secure the pipeline project given its benefits to the country,” Dr Kaunda, who is as well the Executive Chairman of Pangaea Securities (East Africa) Limited, noted.
The business mission, Dr Kaunda explained, seeks to furnish the Ugandan government on the advantages of channeling the pipeline through Tanzania to Tanga port. “We have the Tanzania Petroleum Development Corporation (TPDC), which boasts of trained human resources to carry out such projects. It is high time Tanzania started to think of opportunities to be aligned with the venture,” he noted.
On the other hand, Prof Ntalikwa admitted that a number of high-ranking officials from Kenya, who had ‘sneaked’ into the Ugandan delegation that had been invited for a tour of the Tanga Port, were blocked from accessing the facility.
“It is true that the Kenyan officials were not allowed to visit the port because we had invited only Ugandan officials,” he stated.
The delegation from Kampala, which was allowed entry was led by Uganda’s Energy Minister Irene Mulomi while that of Kenya, which was blocked was under the leadership of Kenya’s Energy Cabinet Secretary Charles Keter.
Last Monday in Nairobi, President Museveni and Uhuru Kenyatta of Kenya held a meeting in which they agreed to meet after two weeks to allow technical officials from the two countries to harmonise their presentations.
Among the issues to be considered by the technical teams include which route is more cost effective, the terrain, the current proven reserves, which will have an impact on the size of the pipeline and viability of Lamu, Mombasa and Tanga ports as export options.
Through the Tanzania route, the project is expected to cost 4 billion US dollars while the same will cost 4.5 billion US dollars through the Kenyan route.
