EACOP vs Lamu pipeline

EACOP vs Lamu pipeline

EACOP: A pipeline, a taxpayer​

Saturday, February 11, 2023
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Elison Karuhanga
By Elison Karuhanga
Columnist

What you need to know:​

  • Benefits of the Eacop project are shared with future generations.
While Uganda is a landlocked country, it is one of the fastest-growing economies in the East African region and we are rich in natural resources, including oil and gas. In recent years, we have made significant progress in the development of our oil and gas sector, with a number of major projects underway. One of these is the East Africa Crude Oil Pipeline (Eacop), which is set to connect the Ugandan oil fields to the Tanzanian port of Tanga.

As is widely known Eacop is a 1,443 m crude oil export pipeline that will run from Hoima in western Uganda to Tanga Port in Tanzania. The pipeline will transport crude oil from Uganda’s oil fields in Lake Albert to the international market, enabling us to increase our export earnings and create new economic opportunities.

Oil pipelines worldwide are a crucial part of the oil and gas industry, providing a secure and efficient means of transporting crude oil from production areas to refineries and other markets. Pipelines have the advantage of being less expensive and more environmentally friendly than other transportation methods such as trucking or shipping.

The pipeline will boost Uganda’s economy and provide new opportunities for our people. The project must have social acceptability within the local communities; it needs a social licence to operate. Over the last few weeks, Eacop has exhibited that it does indeed have a social licence. We have seen assurances that the benefits of the project are shared with the communities along the pipeline route.

In Kakumiro, Eacop announced that it has completed the acquisition of the first of the four areas required for construction support for the development of the Eacop project in Uganda. Prior to the acquisition, agreements were signed with project affected persons (PAPs) who have been fully compensated. These PAPs have signed their compensation agreements, received and served the required three months’ notice to vacate their land.

Other local content commitments include using local goods and services, providing training and employment opportunities, and supporting local businesses. Eacop will also work with local communities to identify and address any potential social and environmental impacts, and provide support to mitigate these impacts.

These commitments will help to ensure that the Eacop project contributes to the sustainable development of the local communities and supports the country’s economic growth. Much work still needs to be done in the area of local content though. We need to see more contracts with fair contract terms going to indigenous companies. Business, including small businesses, should be participants in these projects and not mere observers.

Uganda and Tanzania will receive significant revenue from the Eacop project, which can be used to fund infrastructure projects, improve education and healthcare, and support economic development; in Uganda the public finance law establishes a petroleum fund that should not be used to fund recurrent government expenditure. These revenue streams will provide a stable source of income for the governments and help to ensure that the benefits of the oil sector are shared with each country as a whole.

The Eacop project will support government’s wider efforts to develop the oil and gas sector. This will aid in building the capacity of local firms and institutions, attract new investment, and support the creation of new jobs. Government revenue from taxes and royalties will contribute to the resources needed to support these efforts, ensuring that the oil sector contributes to sustainable economic growth.

Furthermore, contrary to slacktivist propaganda, the Eacop project represents a significant opportunity for Uganda and Tanzania to address the challenge of climate change. The governments will be able to use the revenue from taxes and royalties to support the development of renewable energy sources, reduce greenhouse gas emissions, and promote energy efficiency. This will help to ensure that the countries’ energy sectors are more sustainable and that the benefits of the Eacop project are shared with future generations.

Elison Karuhanga is an advocate and partner at Kampala Associated Advocates
elisonk@kaa.co.ug

www.monitor.co.ug

EACOP: A pipeline, a taxpayer

Benefits of the Eacop project are shared with future generations
www.monitor.co.ug www.monitor.co.ug
 
OIL & GAS / AFRICA / PIPELINES

Marsh faces US complaint over EACOP role​

The complaint alleges Marsh failed to carry out adequate due diligence on the controversial pipeline, which will run from Uganda's west to the port of Tanga, in Tanzania.
By Ed Reed
07/02/2023, 3:50 pm
Photo of Ed Reed

© Supplied by Petroleum Authority
Woman in red raises hands to sky in celebration

Picture shows; Job opportunities supported by Lake Albert project developers. Uganda. Supplied by Petroleum Authority of Uganda Date; Unknown

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A group of environmental NGOs have filed a complaint with the US government over the role of insurance broker Marsh in the East African Crude Oil Pipeline (EACOP).

The group submitted their complaint to the US National Contact Point (NCP) for the OECD Guidelines for Multinational Enterprise, part of the State Department. The complaint focuses on alleged violation of OECD guidelines for responsible business conduct.

This is the first such complaint worldwide that targets an insurance company. While there is reputational risk, OECD rules are non-binding.

Uganda expects construction on the pipeline to start later this year. The land acquisition process in Uganda has been slower than planned.

“An insurance broker’s role is often invisible to the public, which allows them to avoid accountability, but Marsh deserves to be scrutinized,” said Coleen Scott, a legal and policy associate at Inclusive Development International.

Marsh’s role is helping EACOP move ahead “in the face of widespread opposition and overwhelming evidence that the project will be a disaster for Ugandans and for the planet”, Scott said.

Guidelines​

The insurance broker has failed to carry out adequate human rights and environmental due diligence, the complaint said. This is a breach of its responsibilities under OECD guidelines.

Marsh should ensure its alignment with the guidelines, it said. It should not offer broking services for EACOP in future.

In the meantime, Marsh should “immediately … withhold” services until the OECD complaint was resolved, the NGOs said.

A Marsh spokesperson said the company had a policy of not identifying its clients.

“We are committed to helping businesses develop low-carbon business models and manage risks associated with the transition from fossil fuels to renewable energy. As we do our part to accelerate this transition, we recognize that a secure energy supply is crucial for the global economy and society as a whole – this is particularly true in the context of today’s geopolitical environment,” the official said.

“We believe all communities are best served by working with operators of clean energy assets to accelerate progress to a lower carbon world and with traditional energy clients to enable them to manage the risks associated with current projects and make the transition as quickly and responsibly as possible.”

Standard concerns​

An anonymous Ugandan activist said Marsh talked about sustainability but failed to live up to these aspirations. “The company is actively contributing to a massive and irresponsible fossil fuel project that will have the opposite effect,” the complainant said.

EACOP is “diverting resources away from renewable energy projects that Ugandans want”, the Ugandan said. The project is also “threatening natural resources and existing industries that we rely on”.

The complaint picked out a number of areas. It said there had been improper land acquisition and an inadequate consultation with local people. Furthermore, there were threats to natural resources such as potential oil spills, alongside “immense and irreversible harm” to local ecosystems.

It also raised concerns about the increase of carbon emissions.

A Kenyan financial services provider opted not to provide insurance for EACOP in 2022. The reason given was concerns over breaching International Finance Corp. (IFC) standards. Britam Holdings carried out an environmental and social risk evaluation on the project, following which it opted out.

www.energyvoice.com

Marsh faces US complaint over EACOP role

The complaint alleges Marsh failed to carry out adequate due diligence on the controversial pipeline, which will run from Uganda's west to the port of Tanga, in Tanzania.
www.energyvoice.com www.energyvoice.com
 

EACOP construction works to start in May​


MAKAMABA.jpg

Energy minister January Makamba said at the handing over event in Dar es Salaam yesterday that the project is scheduled to take three years through eight regions, and formally starts above ground installations in May at the earliest.

Environmental Impact Assessment (EIA) had been conducted, he stated, asserting that the public and stakeholders should have nothing to worry about on that aspect.

The project will produce a number of positive social and economic impacts in the route it takes, with investment opportunities ranging from transport, construction and others stacked up, he said.

Other benefits are waste management security services, food supply, vending of various items, agro-based produce initiatives, legal consultation on some issues, freight forwarding for scores of materials to be procured during the construction period, he stated.

Still other benefits relate to insurance services, banking and related activities, for lending to initiators of projects on the sidelines of the pipeline, he pointed out.

“This handover marks the oil pipeline construction work, a new prospective era as those living in the pipeline route stand to benefit in one way or another. We need to get prepared to tap such opportunities by producing goods that meet the required standards,” he urged.

The EACOP project is governed by the construction approval for the Tanzanian section and the construction licence issued by the Ugandan government in January 2023, applying on the Ugandan section, he explained.

Upwards of 9,000 eligible individuals have been paid their compensation for land being taken over o for the project, accounting for more than 90 percent of those vacating houses or farms, he affirmed.

The Tanzania Petroleum Development Corporation (TPDC) needs to deliver to regional secretariats the map of the pipeline route, along with opportunities available in each region. The idea is to enable entrepreneurs to tap into the demand, he explained.

Wendy Brown, the director of EACOP (T) Ltd, commended the government for its commitment to ensure that the project is implemented, affirming that construction approval marks another step forward for EACOP.

It allows the commencement of the main construction activities in Tanzania upon completion of the land access process, she said, elated that the government expedited the delivery of its application.

This reflected its commitment in the Host Government Agreement (HGA) and wider support for implementation of the EACOP project, she emphasised.

The total number of those surrendering is over 13,000 straddling the entire route, where about four percent are physically displaced and 96 percent are economically impacted by surrendering portions of land they hold, she stated.

The physically displaced households had a choice between a replacement house handed by the construction firm, or cash compensation, while those losing portions of land are compensated for land, crops, trees or structures they had to abandon, she further noted.

At present. 43 out of 339 replacement houses earmarked for the physically displaced have been completed and handed over in priority areas, with an additional 15 houses ready to handover in Muleba District next week. Another 122 houses are under construction, she said.

The company has also signed the EACOP Plan with traditional leaders of vulnerable ethnic groups otherwise identified as indigenous people, she stated, specifying that EACOP will comply with the laws of Uganda and Tanzania, along with strict observance of international standards, including the IFC performance standards, the Equator principles IV, the OECD common approaches and the voluntary principles on security and human rights (VPSHR).

Omary Mgumba, the Tanga regional commissioner praised President Samia Suluhu Hassan and Ugandan leader Yoweri Museveni for their commitment to the project.

The project was being assailed from various sides but the leaders have remained firm to ensure that it is implemented for the wider interest of the two countries and their people, he said.

Dr James Andilile, the Water Utilities Regulatory Authority (EWURA) director general had earlier said that EACOP (T) submitted an application to get a permit at the end of last year.

“But before issuing the permit authorities need to assess all the needed requirements and all these had already been done. After the assessment, the EWURA board approved the issuance of the permit and today we are officially handing it,” he said.

The pipeline will be 1443km in length overall from Kabaale Industrial Park in western Uganda to the marine storage terminal in Tanga, with 20 percent (296km) traversing Uganda and 80 percent (1147km) traversing Tanzania through eight regions, 24 districts and 184 villages, he added.

ENDS/jz/sm


EACOP construction works to start in May

THE government has approved the works schedule of the contractor for the East African Crude Oil Pipeline (EACOP), who was yesterday handed construction approval after an extensive assessment by regulatory authorities.
www.ippmedia.com www.ippmedia.com
 

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The East AfricanBusiness
Uganda, Tanzania pursue Eacop as activists press banks to stop funding
SUNDAY FEBRUARY 26 2023

Activists demonstrating against Eacop
Activists demonstrating against Eacop in Kampala on February 22, 2023. PHOTO | COURTESY

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General ImageBy GILBERT MWIJUKE
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Uganda’s planned $5 billion East Africa Crude Oil Pipeline (Eacop) has become a global flashpoint as climate campaigners intensify pressure on lenders to withdraw from the project, even as Tanzania government issued a construction licence.

Tanzania gave its approval on Tuesday, several weeks after Uganda did the same last month, for the pipeline construction. According to Peter Muliisa, the chief legal and corporate affairs officer at Uganda National Oil Company, this allows the countries to start moving the equipment to the sites.

“This shows the project is irreversible and allows cross-border movement of goods and services,” he said.

Wendy Brown, the Eacop Tanzania general manager, said the approval allows commencement of the construction in Tanzania.

The Eacop, which is planned to span 1,443 km from Lake Albert in western Uganda to the Tanzanian port of Tanga, has been at the receiving end of criticism by climate activists who argue that it threatens to displace thousands of people and degrades critical ecosystems in the two East African countries.

Mr Muliisa dismisses this concern saying the line will be buried, covered and vegetation restored, allowing cultivation on top of the 30-metre-wide corridor.

On February 22, members of the Stop Eacop coalition were joined by activists from around the world to pressure Standard Bank, Sumitomo Mitsui Banking Corporation (SMBC) and Standard Chartered against funding Eacop.

The activists argue that the project doesn’t comply with the Equator Principles — industry benchmark for assessing, determining and managing social and environmental risk for project financing — to which these particular lenders are signatories.

“Standard Bank (South Africa) and SMBC (Japan) are financial advisers to the project’s operators and reportedly helping to arrange a multibillion-dollar loan to construct Eacop, while Standard Chartered (UK) has expressed interest in financing the project,” 350.org, a New York-based climate-focused non-profit, said in a statement on Wednesday.

The Eacop protests took place in 18 cities, Kampala, London, Paris, and New York, Tokyo, Johannesburg, Frankfurt, Brussels, Sendai, Hoima, Nagoya, Toronto, Fukuoka, Goma, Cape Town, Amsterdam, Copenhagen and Vancouver.

Paris Agreement
Environmentalists say the oil that will be transported through the pipeline will generate up to 34 million tonnes of carbon emissions per year.

While the Paris Agreement’s goal is to limit global temperatures to 1.5 °C, scientists have recently warned that global warming is likely to hit 1.5 °C as early as 2024 due to the proliferation of new oil and gas projects since 2019.

“We urge Standard Bank to reconsider its involvement in the East African Crude Oil Pipeline. Our land, water, and natural resources are integral to our livelihoods and culture, and this pipeline poses a significant threat to our well-being and future,” said Baraka Lenga, climate change activist based in Tanzania.

Despite the backlash, Uganda recently began drilling oil at a site operated by China National Offshore Oil Company (CNOOC) near Lake Albert. French oil major TotalEnergies and CNOOC, the principal backers of Eacop, want to secure all of the project’s financing before the end of March, but 24 banks have already ruled out financing the controversial pipeline due to pressure from green energy campaigners.

Aside from banks, about 20 insurers, including Britam Holdings, have ruled out insuring Eacop.

‘Incomplete view’
For its part, Uganda has defended the country’s oil projects, arguing that climate activists have an incomplete view of the global energy transition.

“Their cause will eventually be ignored,” said Mr Muliisa.

“The global north has gone back to using coal power plants but climate activists focus on small projects in Africa. There is no denying climate change, but we are dealing with energy poverty here,” he added.

www.theeastafrican.co.ke

Uganda, Tanzania pursue Eacop as activists press banks to stop funding

Aside from banks, about 20 insurers, including Britam Holdings, have ruled out insuring Eacop.
www.theeastafrican.co.ke www.theeastafrican.co.ke
 
Magonjwa Mtambuka said:
Wewe nyang'au French court wameshatupilia mbali hilo pingamizi.
Click to expand...
Hii hapa
☰
The East African
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French court dismisses case against East Africa oil project​

Tuesday February 28 2023​


The campaigners had asked the court to order TotalEnergies to halt the east African projects.


French court dismisses case against Eacop
reut-data.jpg

By REUTERS
More by this Author

IN SUMMARY​


Advertisement
Paris
A French court ruled on Tuesday that a lawsuit against oil company TotalEnergies over its controversial oil projects in Uganda and Tanzania was inadmissible.
The case had been brought by six French and Ugandan activist groups which accuse the French company of not doing all it could to protect people and the environment in the two projects, the Tilenga oil development and the East African Crude Oil Pipeline (Eacop).
TotalEnergies and the plaintiff organisations had no immediate comment.
The campaigners had asked the court to order TotalEnergies to halt the east African projects in a landmark case based on a 2017 French law that makes big companies liable for risks to the environment and human rights.
But the court dismissed the request, saying that only a judge examining the case more in depth could assess whether the accusations against TotalEnergies were founded and to then proceed to an audit of operations on the ground.
 
Bugucha said:
Hii hapa
☰
The East African
Advertisement


French court dismisses case against East Africa oil project​

Tuesday February 28 2023​


The campaigners had asked the court to order TotalEnergies to halt the east African projects.


French court dismisses case against Eacop
reut-data.jpg

By REUTERS
More by this Author

IN SUMMARY​


Advertisement
Paris
A French court ruled on Tuesday that a lawsuit against oil company TotalEnergies over its controversial oil projects in Uganda and Tanzania was inadmissible.
The case had been brought by six French and Ugandan activist groups which accuse the French company of not doing all it could to protect people and the environment in the two projects, the Tilenga oil development and the East African Crude Oil Pipeline (Eacop).
TotalEnergies and the plaintiff organisations had no immediate comment.
The campaigners had asked the court to order TotalEnergies to halt the east African projects in a landmark case based on a 2017 French law that makes big companies liable for risks to the environment and human rights.
But the court dismissed the request, saying that only a judge examining the case more in depth could assess whether the accusations against TotalEnergies were founded and to then proceed to an audit of operations on the ground.
Click to expand...

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