Kampala Eldoret Oil Pipeline Extension Stalls as Costs Shoot Up

1539 Views Kampala, Uganda
The construction of the Kampala - Eldoret Oil pipeline has once again been grounded to a halt, as government opts to redesign the entire project. The 351-kilometer pipeline expansion project was earlier scheduled to take off in April this year, but the Energy Ministry halted the exercise, and demanded for a new design. Energy Minister, Hillary Onek, says the new design seeks to provide for what he called a reverse route for the refined oil. //Cue In "The bottleneck where we... Cue Out ... a redesign"// Onek says there is need for more adjustments between Eldoret East wards towards Nairobi. The change on the Kenyan side is expected to increase the costs related to acquiring more land. Plans are also underway to extend the pipeline further to Hoima, where the refinery is expected to be located. According to the redesigned project, this will be used to transport oil for export when Uganda reaches full-scale production. Last week, Beatrice Aywar, the Kitgum Woman MP said that she was concerned about the rising costs of the project. she said that the cost has more than doubled. The contract for the project was awarded to Tamoil East Africa in 2007 at a cost of $80 million, but Anywar says the project cost has been inflated to more than $250 million. Under the 20 year contract, Tamoil was to construct the pipeline under the build, Own, operate and transfer (BOOT). Tamiol Project Manager, Ahmed El Gembri, declined to comment on the new cost, but confirmed that the project design had been changed thrice, since they were awarded the contract.

 

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