EACOP Ltd. has closed the first tranche of external financing for the East African Crude Oil Pipeline project, a major infrastructure development spanning Uganda and Tanzania.

The funding was provided by a syndicate of regional financial institutions, including the African Export-Import Bank (Afreximbank). 

Other banks include The Standard Bank of South Africa Limited, Stanbic Bank Uganda Limited, KCB Bank Uganda, and The Islamic Corporation for the Development of the Private Sector (ICD).

The milestone demonstrates strong support for the project from regional financial institutions, despite threats of sanctions and the withdrawal of potential Western financiers and insurers during the project's preliminary stages. 

The East African Crude Oil Pipeline will transport crude oil from Kabaale, Uganda, to the Chongoleani peninsula near Tanga, Tanzania, for export. The pipeline is designed to carry 246,000 barrels of crude oil per day.

Owned by TotalEnergies (62%), Uganda National Oil Company Limited (UNOC – 15%), Tanzania Petroleum Development Corporation (TPDC – 15%), and CNOOC (8%), EACOP Ltd. aims to deliver the region’s longest pipeline project. 

The project includes a 1,443-kilometer (approximately 900 miles) insulated and buried 24-inch pipeline, with 296 kilometers (approximately 184 miles) in Uganda and 1,147 kilometers (approximately 713 miles) in Tanzania. 

It will also feature six pumping stations, two pressure reduction stations, and a marine export terminal in Tanzania, powered in part by a 3-megawatt peak solar plant.

EACOP Ltd. said construction is progressing in both countries, with overall project progress exceeding 50% by the end of 2024.  

The project has also employed more than 8,000 Ugandan and Tanzanian citizens, provided approximately 400,000 man-hours of training, and invested $500 million locally in goods and services.

Despite opposition by human rights groups and environmental activists, the company stated it is committed to adhering to the highest environmental and social standards, including those of the International Finance Corporation and the Equator Principles. 

The pipeline will be primarily powered by hydro-based grids to ensure smooth operations.