Geza Ulole
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Ila Museveni mhuni sana...
South Sudan is in negotiation with Uganda and Tanzania to use Hoima-Tanga pipeline after DRC Congo
South Sudan is in negotiation with Uganda and Tanzania to use Hoima-Tanga pipeline after DRC Congo
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Geza Ulole
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Tanzania signed EACOP Host Government Agreement deal with Total
Geza Ulole
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Geza Ulole
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Geza Ulole
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By then lazy Kenyans had this hope! 👇
And now 👇
After 3 weeks of highly confidential negotiations in Arusha
MY TAKE
Considering the fact that Tanzania was even not part of COW as was deliberately left out by Kenya that strongly believed, she has bagged the project already, who is laughing all the way to the bank?
I see mama Amina Mohamed as Foreign Affairs CS!
Arusha. Tanzania and Total oil company yesterday signed an agreement that will pave the way for the construction of a crude oil pipeline from Uganda to the Tanga port.
Implementation of the $3.5 billion East African Crude Oil Pipeline (Eacop) project is scheduled to start in February next year, lasting for three and a half years.
Attorney General Adelardus Kilangi signed the Host Government Agreement (HGA) for Tanzania government while Nicolas Terraz penned for Total oil giant.
“This is an important milestone towards the implementation..it represents yet another successful step in the process,” Prof Kilangi said.
The signing followed three weeks of intensive negotiations between senior government technocrats led by the AG and representatives of Total.
The 1,447 kilometre pipeline will be used for transportation of crude oil from Hoima in Uganda to the Tanga port for export overseas.
Yesterday’s pact with Tanzania followed the initialization of another HGA agreement between Total and Uganda on September 11th after three months of negotiations.
Negotiations for the Tanzanian HGA covered, among others, project authorizations, land rights, local content, health safety and environment and labour standards. “Today’s conclusion is a sign of a conducive environment for investment. Investors should be assured the environment is much more conducive now,” he said.
The pipeline, two thirds of which will pass through Tanzania,will generate at least 10,000 jobs and tax revenue and non-tax revenues amounting to billions of shillings.
Total purchases for the project will cough in Sh1.7 trillion while transportation of goods will generate Sh496 billion and annual salaries Sh294 billion.
The permanent secretary in the ministry of Energy Ms Zena Saidi said the negotiations centred on legal and contractual framework.
“The negotiations were tough but we agreed on conditions under which EACOP) will be built, operated and the local content,” she told an audience at a hotel room.
Mr Terraz, Total’s Head of Africa Division said the negotiations were transparent and that the oil giant will ensure clauses of the agreement were implemented to the letter.
The government team included the Governor of the Central Bank Prof Florens Lugoa, several permanent secretaries, chief executives from the parastatal and the business corporates.
Tanzania and Uganda agreed in March 2016 that a pipeline to transport crude oil from the Lake Albert basin in west Uganda to the markets overseas be routed through the Tanga port. An agreement to the letter was signed by the two neighbouring countries in May 2017 followed by the laying of a foundation stone at the Tanga port by presidents John Pombe Magufuli and Yoweri Kaguta Museveni in August the same year.
EACOP is expected to unlock East Africa’s potential by attracting investors to explore opportunities in the region.
It is projected the project will result to over 60 per cent increase in Foreign Direct Investment (FDI) in Tanzania and Uganda during the construction phase.
www.thecitizen.co.tz
And now 👇
After 3 weeks of highly confidential negotiations in Arusha
MY TAKE
Considering the fact that Tanzania was even not part of COW as was deliberately left out by Kenya that strongly believed, she has bagged the project already, who is laughing all the way to the bank?
I see mama Amina Mohamed as Foreign Affairs CS!
Tanzania, Total sign agreement for East African Crude Oil Pipeline
TUESDAY OCTOBER 27 2020
In Summary
- The signing followed three weeks of intensive negotiations between senior government technocrats led by the AG and representatives of Total
Arusha. Tanzania and Total oil company yesterday signed an agreement that will pave the way for the construction of a crude oil pipeline from Uganda to the Tanga port.
Implementation of the $3.5 billion East African Crude Oil Pipeline (Eacop) project is scheduled to start in February next year, lasting for three and a half years.
Attorney General Adelardus Kilangi signed the Host Government Agreement (HGA) for Tanzania government while Nicolas Terraz penned for Total oil giant.
“This is an important milestone towards the implementation..it represents yet another successful step in the process,” Prof Kilangi said.
The signing followed three weeks of intensive negotiations between senior government technocrats led by the AG and representatives of Total.
The 1,447 kilometre pipeline will be used for transportation of crude oil from Hoima in Uganda to the Tanga port for export overseas.
Yesterday’s pact with Tanzania followed the initialization of another HGA agreement between Total and Uganda on September 11th after three months of negotiations.
Negotiations for the Tanzanian HGA covered, among others, project authorizations, land rights, local content, health safety and environment and labour standards. “Today’s conclusion is a sign of a conducive environment for investment. Investors should be assured the environment is much more conducive now,” he said.
The pipeline, two thirds of which will pass through Tanzania,will generate at least 10,000 jobs and tax revenue and non-tax revenues amounting to billions of shillings.
Total purchases for the project will cough in Sh1.7 trillion while transportation of goods will generate Sh496 billion and annual salaries Sh294 billion.
The permanent secretary in the ministry of Energy Ms Zena Saidi said the negotiations centred on legal and contractual framework.
“The negotiations were tough but we agreed on conditions under which EACOP) will be built, operated and the local content,” she told an audience at a hotel room.
Mr Terraz, Total’s Head of Africa Division said the negotiations were transparent and that the oil giant will ensure clauses of the agreement were implemented to the letter.
The government team included the Governor of the Central Bank Prof Florens Lugoa, several permanent secretaries, chief executives from the parastatal and the business corporates.
Tanzania and Uganda agreed in March 2016 that a pipeline to transport crude oil from the Lake Albert basin in west Uganda to the markets overseas be routed through the Tanga port. An agreement to the letter was signed by the two neighbouring countries in May 2017 followed by the laying of a foundation stone at the Tanga port by presidents John Pombe Magufuli and Yoweri Kaguta Museveni in August the same year.
EACOP is expected to unlock East Africa’s potential by attracting investors to explore opportunities in the region.
It is projected the project will result to over 60 per cent increase in Foreign Direct Investment (FDI) in Tanzania and Uganda during the construction phase.
Tanzania, Total sign agreement for East African Crude Oil Pipeline
Tanzania and Total oil company yesterday signed an agreement that will pave the way for the construction of a crude oil pipeline from Uganda to the Tanga port.
www.thecitizen.co.tz
eliakeem
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- May 29, 2009
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By then lazy Kenyans had this hope! 👇
And now 👇
After 3 weeks of highly confidential negotiations in Arusha
MY TAKE
Considering the fact that Tanzania was even not part of COW as was deliberately left out by Kenya that strongly believed, she has bagged the project already, who is laughing all the way to the bank?
I see mama Amina Mohamed as Foreign Affairs CS!
Tanzania, Total sign agreement for East African Crude Oil Pipeline
TUESDAY OCTOBER 27 2020
In Summary
By Zephania Ubwani @TheCitizenTZ news@tz.nationmedia.com
- The signing followed three weeks of intensive negotiations between senior government technocrats led by the AG and representatives of Total
Arusha. Tanzania and Total oil company yesterday signed an agreement that will pave the way for the construction of a crude oil pipeline from Uganda to the Tanga port.
Implementation of the $3.5 billion East African Crude Oil Pipeline (Eacop) project is scheduled to start in February next year, lasting for three and a half years.
Attorney General Adelardus Kilangi signed the Host Government Agreement (HGA) for Tanzania government while Nicolas Terraz penned for Total oil giant.
“This is an important milestone towards the implementation..it represents yet another successful step in the process,” Prof Kilangi said.
The signing followed three weeks of intensive negotiations between senior government technocrats led by the AG and representatives of Total.
The 1,447 kilometre pipeline will be used for transportation of crude oil from Hoima in Uganda to the Tanga port for export overseas.
Yesterday’s pact with Tanzania followed the initialization of another HGA agreement between Total and Uganda on September 11th after three months of negotiations.
Negotiations for the Tanzanian HGA covered, among others, project authorizations, land rights, local content, health safety and environment and labour standards. “Today’s conclusion is a sign of a conducive environment for investment. Investors should be assured the environment is much more conducive now,” he said.
The pipeline, two thirds of which will pass through Tanzania,will generate at least 10,000 jobs and tax revenue and non-tax revenues amounting to billions of shillings.
Total purchases for the project will cough in Sh1.7 trillion while transportation of goods will generate Sh496 billion and annual salaries Sh294 billion.
The permanent secretary in the ministry of Energy Ms Zena Saidi said the negotiations centred on legal and contractual framework.
“The negotiations were tough but we agreed on conditions under which EACOP) will be built, operated and the local content,” she told an audience at a hotel room.
Mr Terraz, Total’s Head of Africa Division said the negotiations were transparent and that the oil giant will ensure clauses of the agreement were implemented to the letter.
The government team included the Governor of the Central Bank Prof Florens Lugoa, several permanent secretaries, chief executives from the parastatal and the business corporates.
Tanzania and Uganda agreed in March 2016 that a pipeline to transport crude oil from the Lake Albert basin in west Uganda to the markets overseas be routed through the Tanga port. An agreement to the letter was signed by the two neighbouring countries in May 2017 followed by the laying of a foundation stone at the Tanga port by presidents John Pombe Magufuli and Yoweri Kaguta Museveni in August the same year.
EACOP is expected to unlock East Africa’s potential by attracting investors to explore opportunities in the region.
It is projected the project will result to over 60 per cent increase in Foreign Direct Investment (FDI) in Tanzania and Uganda during the construction phase.
Tanzania, Total sign agreement for East African Crude Oil Pipeline
Tanzania and Total oil company yesterday signed an agreement that will pave the way for the construction of a crude oil pipeline from Uganda to the Tanga port.
That's great milestone. The pace towards the desired goal is promising. Bravo team EACOP.
Halafu, was suggesting to revisit the title, to say, "EACOP UPDATES". I can see this sounds good as we are currently witnessing a great development regarding the project.
Meanwhile
Kuna jamaa mmoja wa kutoka 'nchi "timu roho mbaya"'. Akawa anasema tutalipigania hili bomba kwa njia zozote zile mpaka dakika ya mwisho. Nilimwona akihojiwa na BBC huku akitokwa machozi.
😛😛😛
Geza Ulole
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M-tag basii. ..
eliakeem
JF-Expert Member
- May 29, 2009
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Wameipata hiyo,
Nadhani sasa yule jamaa wa kutoka nchi ya "timu roho mbaya" anahangaika sijui akumbatie transformer, mara ameze wembe, mara anafikiria kumpigia simu mkaanga sumu ili amletee. Kwa ufupi wananchi wa "nchi roho mbaya" wanaweweseka.
😛😛😛
Geza Ulole
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How Uganda lost out in lucrative Tullow Oil deal
- October 25, 2020
- Written by URN
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Uganda is expected to earn $14.6 million (about Shs 55 billion) as capital gains tax on the sale of oil and gas interests in Uganda by Tullow Oil to French multinational oil and gas company, Total SE.
The long-drawn-out process of Tullow Oil exiting Uganda has now entered the final chapter, after the Ugandan government and Uganda Revenue Authority (URA) together with the two companies reached a binding agreement on the taxes that should be paid.
Tullow discovered huge reserves of oil in the Lake Albert basin in western Uganda starting 2006. It had entered Uganda by acquiring the exploration interests of Energy Africa in 2004, and in 2007, it grew its fortunes when it acquired the licenses of Australian explorer, Hardman Resources in 2007.
But the development of the industry has been delayed by disagreements over legal and tax regimes. In 2010, it was not a smooth transaction when Tullow acquired the interests of Heritage Oil for $1.45 billion. The government slapped a $434 million (about Shs 1.62 trillion) capital gains tax from the transaction.
The tax is charged on the value of the transaction if the asset in question has gained value over time, but it is included in the business income tax. After a long two-year battle, involving suits in Ugandan courts and tax appeals tribunal, as well as arbitration in a London court, Uganda won the case.By then, more than 1.7 billion barrels of oil had been discovered in the rift valley. At this same time, Heritage had deposited $121 million (Shs 451 billion) with URA as part of the tax in dispute but later refused to pay the balance when the ruling was made.
Government forced Tullow to pay the balance of $313 million (about 1.168 trillion), before allowing it to get new and bigger partners, Total of France and the Chinese group, CNOOC to join the project.
To sale two-thirds of its interests to the new partners, the government assessed a capital gains tax of $472 million (Shs 1.76 trillion) on the transaction valued at $2.9 billion (Shs 10.8 trillion). However, the tax appeals tribunal revised this amount to $407 million (Shs 1.9 trillion).
In 2017, as Uganda insisted on building a refinery on top of a crude export pipeline, Tullow Uganda’s parent company, Tullow Oil Plc started experiencing cash problems and decided to sell its entire assets in Uganda, to pay off debts worth more than $900 million (about Shs 4.4 trillion).
Tullow and the three partners found themselves at loggerheads with the state after it changed the route of the export pipeline to Tanzania’s port of Tanga, away from Lamu in Kenya. Tullow eventually decided to sell its Ugandan assets to Total, leading to another battle over taxes payable on the transaction then valued at $900 million.
Uganda assessed the tax at $300 million (Shs 1.4 trillion), which is one-third of the transaction value, but Tullow disputed this, saying the transaction was not taxable. Two years of negotiations saw the government reduce the bill to $167 million (Shs 632.5 billion), while Tullow insisted on paying $85 million (Shs 317 billion).
If the transaction had been concluded in 2019, the government would have received up to $85 million (Shs 317 billion). However, in April 2020, a new deal was reached at a revised value of $575 million (Shs 2.8 trillion) down from the initial $900 million (Shs 4.4 trillion), while the capital gains tax payable dropped to $14.6 million (Shs 54.5 billion), according to Tullow Oil Plc head of corporate affairs, George Cazenove.
After 14 years of exploring for oil in Uganda, Tullow is exiting the country which now has 6.5 billion barrels of oil confirmed and 1.7 billion recoverable, according to the government.
Tullow executive chairperson, Dorothy Thompson says the sale of assets in Africa, particularly in Uganda and Kenya is targeted at raising at least $1 billion to improve the company’s financial position.
“This is important for Tullow and forms the first step for our programme of portfolio management. It represents an excellent start towards our previously announced target of raising USD 1 billion. Tullow’s strategy to move to a more conservative capital structure,” she said.
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Geza Ulole
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eliakeem
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Geza Ulole
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- #92
Geza Ulole
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- Oct 31, 2009
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eliakeem
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Geza Ulole
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East Africa’s LAPSSET project remains at the volatile nexus of political and commercial dynamics with its short to medium term success increasingly unlikely.
East Africa’s aspirations for economic integration were intended to be catalysed through Kenya’s flagship LAPSSET project; however, it continues to face serious obstacles. The ‘mega-project’ is designed to serve as a regional transport corridor – improving trade between Uganda, Kenya, Ethiopia and South Sudan (excluding Tanzania) – complemented by a pipeline network which would improve its feasibility.
With no pipeline, plans to produce from East Africa’s recent oil discoveries are facing serious setbacks – an issue compounded by oil prices which recently dipped to almost $36 per barrel – and are expected to face further problems in 2016.
Pipeline politics
In August 2015, the presidents of Uganda and Kenya agreed to a 1,380 km pipeline route: Hoima-Lokichar-Lamu. However, doubt was quickly cast on this encouraging development as the Ugandan and Tanzanian governments agreed to study an alternative pipeline route to the Tanzanian port of Tanga.
The alternative Uganda to Tanzania pipeline is looking increasingly likely, notably because it is a more economical option while oil prices remain volatile. Adding to regional uncertainty, International Oil Companies (IOCs) operating in the region, namely Total S.A. and Tullow Oil plc, are divided on which route to take.
Tullow is desperate for the pipeline to extend from its oil fields in Lake Albert, Uganda to its Kenyan fields in Turkana County – reducing the burden of having to export limited oil reserves in Kenya (600,000 recoverable barrels), without securing the benefits of boosted commercial viability coming from Uganda’s substantially larger reserves (6.5 billion barrels of crude reserves).
Total, who do not have blocks in Kenya, are adamant that a pipeline extending though Tanzania is a better option. Total do not want to expose their operations to significant security risks in Kenya posed by al-Shabaab. Moreover, Total fears tensions between ethnic groups and refugee flows in Turkana county and possible election violence in 2017 and 2022, having already suffered major security issues in other locations.
A final decision on a pipeline route, whether through Kenya or Tanzania, is essentially, a political one. Kenya, a natural competitor with Tanzania, excluded it from the LAPSSET project in order that it might retain its regional leadership, as its position as regional leader is threatened by Tanzania.
Comparatively, Tanzania, has by far less corruption, less security risks, and encouraging political prospects – confirmed by recent peaceful elections. In turn, it is becoming increasingly favoured by investors, evidenced by it securing the largest proportion of regional FDI. By contrast, Kenya continues to struggle with mounting security problems, high-level corruption scandals and political uncertainty.
Further complicating matters, Ethiopia decided against pipeline integration with LAPSSET and now plan to build their own Addis-Djibouti pipeline, leaving Kenya with the burden of financing a commercially unattractive pipeline from Turkana to Lamu, if Uganda favours one through Tanzania.
Election implications, Uganda and Kenya
These issues will continue to frustrate progress in the oil industry and could lead to increased political tensions which will prove problematic with Ugandan elections in February and the build up to Kenyan elections in 2017. Both countries had expected oil to flow by 2017. For President Uhuru Kenyatta this would serve to improve his electoral prospects. However, Tullow doesn’t expect to make a final investment decision until 2017 and oil is not expected to flow until 2020 or 2022. In turn, local expectations regarding oil have been dashed, as many workers have been laid off in both Kenya and Uganda due to low oil prices and strategic uncertainty.
Incumbent leaders who have failed to deliver on oil related promises thus far will face pressure from opposition candidates looking to draw on the grievances of those negatively affected by the industry or the dampened hopes of those on a national level who expected economic transformation. In both instances the risk of isolated unrest and violence is an increasing likelihood which could impact IOCs.
Pressure on IOCs
Elections in Uganda are already characterized by high-level political divisions, and will be seen by locals as an opportunity to ensure oil revenues will benefit them. By example, Bunyoro Kingdom officials – located near the oil fields are demanding pre-production royalties of 1% obtained by the Ugandan government from ‘signature bonuses’ and capital gains tax. Similar opportunities will likely be sought in Kenya.
If incumbent political leaders in Uganda or Kenya do not manage to secure support from communities affected by the oil industry in the run up to or following the elections, then political and security risks will increase. Said communities will increasingly grow impatient and resort to violence or increase political pressures on governments posing longer-term problems for oil companies’ operations.
East Africa’s pipeline politics in 2016
East Africa’s pipeline politics likely to tilt in favour of Dar
East Africa’s aspirations for economic integration were intended to be catalysed through Kenya’s flagship LAPSSET project; however, it continues to face serious obstacles. The ‘mega-project’ is designed to serve as a regional transport corridor – improving trade between Uganda, Kenya, Ethiopia and South Sudan (excluding Tanzania) – complemented by a pipeline network which would improve its feasibility.
With no pipeline, plans to produce from East Africa’s recent oil discoveries are facing serious setbacks – an issue compounded by oil prices which recently dipped to almost $36 per barrel – and are expected to face further problems in 2016.
Pipeline politics
In August 2015, the presidents of Uganda and Kenya agreed to a 1,380 km pipeline route: Hoima-Lokichar-Lamu. However, doubt was quickly cast on this encouraging development as the Ugandan and Tanzanian governments agreed to study an alternative pipeline route to the Tanzanian port of Tanga.
The alternative Uganda to Tanzania pipeline is looking increasingly likely, notably because it is a more economical option while oil prices remain volatile. Adding to regional uncertainty, International Oil Companies (IOCs) operating in the region, namely Total S.A. and Tullow Oil plc, are divided on which route to take.
Total, who do not have blocks in Kenya, are adamant that a pipeline extending though Tanzania is a better option. Total do not want to expose their operations to significant security risks in Kenya posed by al-Shabaab. Moreover, Total fears tensions between ethnic groups and refugee flows in Turkana county and possible election violence in 2017 and 2022, having already suffered major security issues in other locations.
A final decision on a pipeline route, whether through Kenya or Tanzania, is essentially, a political one. Kenya, a natural competitor with Tanzania, excluded it from the LAPSSET project in order that it might retain its regional leadership, as its position as regional leader is threatened by Tanzania.
Comparatively, Tanzania, has by far less corruption, less security risks, and encouraging political prospects – confirmed by recent peaceful elections. In turn, it is becoming increasingly favoured by investors, evidenced by it securing the largest proportion of regional FDI. By contrast, Kenya continues to struggle with mounting security problems, high-level corruption scandals and political uncertainty.
Further complicating matters, Ethiopia decided against pipeline integration with LAPSSET and now plan to build their own Addis-Djibouti pipeline, leaving Kenya with the burden of financing a commercially unattractive pipeline from Turkana to Lamu, if Uganda favours one through Tanzania.
Election implications, Uganda and Kenya
These issues will continue to frustrate progress in the oil industry and could lead to increased political tensions which will prove problematic with Ugandan elections in February and the build up to Kenyan elections in 2017. Both countries had expected oil to flow by 2017. For President Uhuru Kenyatta this would serve to improve his electoral prospects. However, Tullow doesn’t expect to make a final investment decision until 2017 and oil is not expected to flow until 2020 or 2022. In turn, local expectations regarding oil have been dashed, as many workers have been laid off in both Kenya and Uganda due to low oil prices and strategic uncertainty.
Incumbent leaders who have failed to deliver on oil related promises thus far will face pressure from opposition candidates looking to draw on the grievances of those negatively affected by the industry or the dampened hopes of those on a national level who expected economic transformation. In both instances the risk of isolated unrest and violence is an increasing likelihood which could impact IOCs.
Pressure on IOCs
Elections in Uganda are already characterized by high-level political divisions, and will be seen by locals as an opportunity to ensure oil revenues will benefit them. By example, Bunyoro Kingdom officials – located near the oil fields are demanding pre-production royalties of 1% obtained by the Ugandan government from ‘signature bonuses’ and capital gains tax. Similar opportunities will likely be sought in Kenya.
If incumbent political leaders in Uganda or Kenya do not manage to secure support from communities affected by the oil industry in the run up to or following the elections, then political and security risks will increase. Said communities will increasingly grow impatient and resort to violence or increase political pressures on governments posing longer-term problems for oil companies’ operations.
East Africa’s pipeline politics in 2016
East Africa’s pipeline politics likely to tilt in favour of Dar
Geza Ulole
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DISCORD
Rival projects, regional politics threat to Kisumu port – shippers
The Sh700 million refurbished port is yet to commissioned one year since completion of work
by MARTIN MWITABusiness Writer
Business
02 November 2020 - 04:00
In Summary
•The facility was planned to have been commissioned by President Uhuru Kenyatta in November last year.
•Rival projects between Uganda and Tanzania, including the $3.5 billion (Sh381 billion)Uganda–Tanzania Crude Oil Pipeline (UTCOP), are among those that have left Kenya in the cold.
Kisumu port
Image: Faith Matete
Lack of political goodwill and rival regional projects are proving to be a headache for Kenya's ambitions to commission and fully operate the Kisumu Port, shippers have noted.
Refurbishment of the facility at a cost of Sh700 million was completed in September last year, but its commissioning is yet to take place one year later, with the government shifting dates for its launch.
The facility was planned to have been commissioned by President Uhuru Kenyatta in November last year.
It was later pushed to January this year, an event the government has gone mum on to date, despite the President making several visits to the Lakeside city.
In August, President Uhuru Kenyatta made a low key visit to Kisumu where he made an impromptu tour of the port, which took about 40 minutes.
His most recent visit is last week when he landed at the facility during his tour of the region, with residents hoping he would address the delayed commissioning of the port which is expected to open up regional trade and create employment.
Rival projects between Uganda and Tanzania, including the $3.5 billion (Sh381 billion)Uganda–Tanzania Crude Oil Pipeline (UTCOP) (supposed to read East African Crude Oil pipeline never heard of UTCOP 🤣 🤣 ), are among those that have left Kenya in the cold, according to shippers.
The Shippers Council of Eastern Africa(SCEA) yesterday said infrastructure development between Uganda and Tanzania remain a threat to Kenya's Kisumu Port, even as it questioned why the has remained quite on the project.
"We have received about two invitations to its launch which have all never taken place.There is no much information about the port.
Everybody is in the dark,” SCEA chief executive Gilbert Langat told the Star yesterday.
He cautioned that failure to put the facility into full use will deny Kenya an opportunity to tap into the Lake Victoria trade network, that links Kisumu to the Musoma, and Bukoba ports in Tanzania and Entebbe and Port Bell in Uganda.
“If we develop infrastructure and don't use it, business will not wait, people will look for alternatives,” Langat noted.
Tanzania is also said to play protectionism for its Mwanza, Musoma and Bukoba Lake facilities as it eyes landlocked Uganda as a key transit destination through Entebbe, Port Bell and Jinja.
"The choice of Uganda to work closely with Tanzania is something we need to worry about. We need to have a concersation at the regional level,"Langat said.
Silence on commissioning of the port has since left Kenyan traders and business community in the dark.
Efforts to reach the Transport CS James Macharia for comment proved futile after our calls and text messages went answered.
Interior Principal Secretary Karanja Kibicho had in August said the opening was being delayed due to the Covid-19 pandemic.
“This project was meant to be opened a long time ago, but we have to blame Covid-19,” Kibicho said during a courtesy call to the Nyanza Regional Commissioner.
He yesterday led a team of over 10 Principal Secretaries on inspection of National Government projects in Lamu county, including the Port of Lamu.
The visit comes a week after last the Star reported (last Wednesday) that the manufacturing and delivering of equipment for Lamu Port has been derailed by Covid-19, which is among reasons the facility is yet to be commissioned despite being ready to handle vessels.
In Kisumu, Kenya Railways has taken over operations of the port after the recent merger of Kenya Ports Authority, Kenya Pipeline and railways operations , into the Kenya Transport and Logistics Network (KTLN), coordinated by the Industrial and Commercial Development Corporation (ICDC).
"It is true Kenya Railways have been given the mandate to run the port since we dont have much to handle," a port official told the Star yesterday.
Kenya Railways has been moving small volumes of oil products using its refurbished MV Uhuru to Uganda.
It shipped the first consignment of 22 wagons loaded with 894,000 litres of diesel last December, with no major containerized nor conventional cargo activities at the facility, which is worrying the business community.
All along, Uhuru has been expected to open the port alongside his Tanzanian, Ugandan counterparts John Magufuli and Yoweri Museveni, who are currently on elections mood.
This means Kenya will have to wait longer for any chances of a collaborative launch.
The port can handle 50,000 TEUs or an equivalent of 200,000 metric tonnes.
TEU stands for Twenty-Foot Equivalent Unit which can be used to measure a ship’s cargo carrying capacity.
“It (Kisumu Port) will handle all types of cargo,” KPA management told the Star.
TradeMark East Africa has vouched for Kisumu Port as a key facility the will boost trade within the East Africa Community.
“Kisumu port is served by the Northern Corridor and would attract transit cargo traffic to Uganda and Northern Tanzania. The ports in Tanzania which are primarily served by the Central Corridor will attract transit cargo destined for Uganda, DRC and South Sudan,” Sjoerd Visser, TMEA director-Great Lakes, told the Star.
According to TMEA, water transport is the cheapest and most inclusive mode of transport.
Unfortunately, water transport is also one of the most under-developed and under-utilised modes of transport in East Africa, TMEA notes, calling for improvement of Lake port facilities.
It has been under utilized for over 20 years, with its refurbishment being an effort by the government to revive lake region trade.
Rival projects, regional politics threat to Kisumu port – shippers
The Sh700 million refurbished port is yet to commissioned one year since completion of work
MY TAKE
Tony254 umeiona hii article juu ya Kisumu port?
mwaswast
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Hapo kwenu Kazi tu, hapa kwetu BBI tu 😭😭DISCORD
Rival projects, regional politics threat to Kisumu port – shippers
The Sh700 million refurbished port is yet to commissioned one year since completion of work
by MARTIN MWITA
Business Writer
Business
02 November 2020 - 04:00
In Summary
•The facility was planned to have been commissioned by President Uhuru Kenyatta in November last year.
•Rival projects between Uganda and Tanzania, including the $3.5 billion (Sh381 billion)Uganda–Tanzania Crude Oil Pipeline (UTCOP), are among those that have left Kenya in the cold.
Kisumu port
Image: Faith Matete
Lack of political goodwill and rival regional projects are proving to be a headache for Kenya's ambitions to commission and fully operate the Kisumu Port, shippers have noted.
Refurbishment of the facility at a cost of Sh700 million was completed in September last year, but its commissioning is yet to take place one year later, with the government shifting dates for its launch.
The facility was planned to have been commissioned by President Uhuru Kenyatta in November last year.
It was later pushed to January this year, an event the government has gone mum on to date, despite the President making several visits to the Lakeside city.
In August, President Uhuru Kenyatta made a low key visit to Kisumu where he made an impromptu tour of the port, which took about 40 minutes.
His most recent visit is last week when he landed at the facility during his tour of the region, with residents hoping he would address the delayed commissioning of the port which is expected to open up regional trade and create employment.
Rival projects between Uganda and Tanzania, including the $3.5 billion (Sh381 billion)Uganda–Tanzania Crude Oil Pipeline (UTCOP) (supposed to read East African Crude Oil pipeline never heard of UTCOP 🤣 🤣 ), are among those that have left Kenya in the cold, according to shippers.
The Shippers Council of Eastern Africa(SCEA) yesterday said infrastructure development between Uganda and Tanzania remain a threat to Kenya's Kisumu Port, even as it questioned why the has remained quite on the project.
"We have received about two invitations to its launch which have all never taken place.There is no much information about the port.
Everybody is in the dark,” SCEA chief executive Gilbert Langat told the Star yesterday.
He cautioned that failure to put the facility into full use will deny Kenya an opportunity to tap into the Lake Victoria trade network, that links Kisumu to the Musoma, and Bukoba ports in Tanzania and Entebbe and Port Bell in Uganda.
“If we develop infrastructure and don't use it, business will not wait, people will look for alternatives,” Langat noted.
Tanzania is also said to play protectionism for its Mwanza, Musoma and Bukoba Lake facilities as it eyes landlocked Uganda as a key transit destination through Entebbe, Port Bell and Jinja.
"The choice of Uganda to work closely with Tanzania is something we need to worry about. We need to have a concersation at the regional level,"Langat said.
Silence on commissioning of the port has since left Kenyan traders and business community in the dark.
Efforts to reach the Transport CS James Macharia for comment proved futile after our calls and text messages went answered.
Interior Principal Secretary Karanja Kibicho had in August said the opening was being delayed due to the Covid-19 pandemic.
“This project was meant to be opened a long time ago, but we have to blame Covid-19,” Kibicho said during a courtesy call to the Nyanza Regional Commissioner.
He yesterday led a team of over 10 Principal Secretaries on inspection of National Government projects in Lamu county, including the Port of Lamu.
The visit comes a week after last the Star reported (last Wednesday) that the manufacturing and delivering of equipment for Lamu Port has been derailed by Covid-19, which is among reasons the facility is yet to be commissioned despite being ready to handle vessels.
In Kisumu, Kenya Railways has taken over operations of the port after the recent merger of Kenya Ports Authority, Kenya Pipeline and railways operations , into the Kenya Transport and Logistics Network (KTLN), coordinated by the Industrial and Commercial Development Corporation (ICDC).
"It is true Kenya Railways have been given the mandate to run the port since we dont have much to handle," a port official told the Star yesterday.
Kenya Railways has been moving small volumes of oil products using its refurbished MV Uhuru to Uganda.
It shipped the first consignment of 22 wagons loaded with 894,000 litres of diesel last December, with no major containerized nor conventional cargo activities at the facility, which is worrying the business community.
All along, Uhuru has been expected to open the port alongside his Tanzanian, Ugandan counterparts John Magufuli and Yoweri Museveni, who are currently on elections mood.
This means Kenya will have to wait longer for any chances of a collaborative launch.
The port can handle 50,000 TEUs or an equivalent of 200,000 metric tonnes.
TEU stands for Twenty-Foot Equivalent Unit which can be used to measure a ship’s cargo carrying capacity.
“It (Kisumu Port) will handle all types of cargo,” KPA management told the Star.
TradeMark East Africa has vouched for Kisumu Port as a key facility the will boost trade within the East Africa Community.
“Kisumu port is served by the Northern Corridor and would attract transit cargo traffic to Uganda and Northern Tanzania. The ports in Tanzania which are primarily served by the Central Corridor will attract transit cargo destined for Uganda, DRC and South Sudan,” Sjoerd Visser, TMEA director-Great Lakes, told the Star.
According to TMEA, water transport is the cheapest and most inclusive mode of transport.
Unfortunately, water transport is also one of the most under-developed and under-utilised modes of transport in East Africa, TMEA notes, calling for improvement of Lake port facilities.
It has been under utilized for over 20 years, with its refurbishment being an effort by the government to revive lake region trade.
Rival projects, regional politics threat to Kisumu port – shippers
The Sh700 million refurbished port is yet to commissioned one year since completion of workwww.the-star.co.ke
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Tony254 umeiona hii article juu ya Kisumu port?
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