EACOP vs Lamu pipeline

ACP-EU gives Uganda go-ahead to proceed with East African Crude Oil Pipeline project​

Construction of pipeline had been criticized over its link to human rights violations and potential degradation of environment​

Godfrey Olukya |04.11.2022

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KAMPALA, Uganda
The African, Caribbean, Pacific - European Union (ACP-EU) Joint Parliamentary Assembly has overturned an earlier decision and voted to allow Uganda to proceed with developing the East African Crude Oil Pipeline (EACOP) project.
The 1,443-kilometer (897-mile) long pipeline will run from oil wells in Uganda’s Western Region to Tanzania’s seaport of Tanga.

The EU originally said that the project should not take place because it would violate the rights of people in the areas of Uganda and Tanzania where the pipeline would be constructed and would also degrade the environment.

However, the ACP-EU assembly, sitting in Maputo, Mozambique, voted on Wednesday in favor of Uganda proceeding with developing the pipeline.

The assembly brings together an equal number of elected members of parliament from African, Caribbean and Pacific states and members of the European Parliament.

This came after the Ugandan delegation to the Maputo meeting led by Deputy Speaker Thomas Tayebwa convinced the assembly that the pipeline’s construction would not violate human rights or affect the environment.

“The delegation asked the assembly to allow for a just transition to renewable energy, as opposed to the abrupt halting of exploration, especially by the global south,” the Ugandan parliament said Thursday in a statement.

It said the ACP-EU resolution waters down an earlier stance by the European Parliament that had expressed grave concern over alleged human rights violations in Uganda and Tanzania linked to the project.

Uganda has 6.5 billion barrels of proven oil reserves, around 2.2 billion of which are recoverable.

Uganda, with Total E&P Uganda and China National Offshore Oil Corporation (CNOOC), which explored for oil, came up with the idea of constructing a 1,443-kilometer heated and buried crude oil pipeline to Tanzania’s coastal port of Tanga, which the ACP-EU was opposing.

Geza Ulole said:

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Where are the wiggly tail stray dogs that are always looking at their masters in anticipation of getting this piece of a cake? Kazi iendelee [emoji41]

coodip1 said:

Where are the wiggly tail stray dogs that are always looking at their masters in anticipation of getting this piece of a cake? Kazi iendelee [emoji41]

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CC: nairobae, NairobiWalker

Huu mradi unawaumiza nyang’au isivyo kifani.

Centum writes off $16.3m invested in Lamu coal project​

SATURDAY DECEMBER 03 2022​

Environmental activists demonstrating in Nairobi on June 12, 2019 against the construction of a coal power plant in Lamu. Centum Investments Company Ltd has written off its Ksh2 billion ($16.39 million) investment in the controversial Lamu coal-fired power plant. PHOTO | FILE | NMG



By JAMES ANYANZWA
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Centum Investments Company Ltd has written off its Ksh2 billion ($16.39 million) investment in the controversial Lamu coal-fired power plant. The project failed to take-off over environmental concerns and lack of financing.

The carrying value of the investment has dropped to zero in the books in the 2019/2020 financial year, casting doubts on the possibility of recovery.







Chief executive James Mworia told The EastAfrican that the strategic decision was informed by the need to be “prudent’’ over the investment.

The writing off comes as the investment firm also suffered a Ksh900 million ($7.37 million) impairment loss on its investment in Akiira Geothermal power project, a 140MW plant under construction in Kenya’s Nakuru County.

Centum invested Ksh1.97 billion ($16.14 million) in Akiira power for a 37.5 percent stake in 2016, but the carrying value of the investment has declined to Ksh1.07 billion ($8.77 billion) as at September 30, 2022.

In the same year (2016) Centum invested Ksh2 billion ($16.39 million) in Amu Power — a joint venture between Gulf Power (developer and co-sponsor) and Centum (co-sponsor) — for a 50 percent shareholding.

Encountered setbacks​

However, the project encountered several setbacks, including revocation of an environmental licence, delays in raising funds from banks and an announcement by the technical partner General Electric that it was exiting the coal business.

Amu Power Company was created as a special purpose vehicle by Centum and Gulf Energy Ltd to assemble a consortium of lenders and technical partners to deliver the $2 billion project that has since stalled.

In 2020, the Industrial and Commercial Bank of China (ICBC), which had committed to meet an estimated 60 percent ($1.2 billion) of the project’s development cost developed cold feet towards the plant that was expected to add 1,050 megawatts (MW) of energy on the national grid upon completion.

Struggling with losses​

The Group is struggling with losses after years of massive capital investments and mounting debt took a heavy toll on its finances.

The group made a loss of Ksh1.29 billion ($10.57 million) in the six months to September 30 from Ksh662 million ($5.42 million) in the same period last year. All of the group’s trading, investments and subsidiary operations save financial services made losses.

The regional company which is listed on the Nairobi Securities Exchange attributed its poor performance to the volatility in the forex market.

According to the unaudited financial statements the group’s consolidated net loss increased by 95 percent to Ksh1.29 billion ($10.57 million) from Ksh662 million ($5.42 million).