The oil pipeline would start in Buseruka sub-county, Hoima District, in Uganda's Western Region. It would travel in a general southeasterly direction to pass through Masaka in Uganda, Bukoba in Tanzania, loop around the southern shores of Lake Victoria, continue through Shinyanga and Siginda, to end in Tanga, a distance of approximately 1,410 kilometres (880 mi).
Uganda has proven oil reserves exceeding 6.5 billion barrels, of which about 2.2 billion barrels are recoverable. The country plans to build a refinery in the Western Region to process what is needed locally and regionally, with the rest exported via pipeline to the Indian Ocean coast.
At the 13th Northern Corridor Heads of State Summit in Kampala in April 2016, Uganda officially announced its choice for the Tanzania route for its crude oil, in preference to the Mombasa or Lamu routes in Kenya. At that summit, the presidents of both Kenya and Rwanda were present, along with representatives from Ethiopia, South Sudan, and Tanzania.
The planned capacity of this pipeline is 200,000 barrels of crude oil per day. It was expected that construction would start in August 2016 and last three years at a budgeted cost of US$4 billion, offering approximately 15,000 construction jobs and between 1,000 and 2,000 permanent jobs.
The Uganda-Tanzania refined oil products Pipeline Project has received funding from the New Partnership for Africa’s Development Infrastructure Project Preparation Facility (NEPAD-IPPF). The facility said that the oil refinery is among the eight projects set to get total funding of $ 14.83 million. The oil project was approved with oversight from the East African Community Secretariat.
NEPAD-IPPF has continued to support African countries to strengthen regional infrastructure connectivity by providing grants for project preparation and development for complex, cross-border regional infrastructure projects in energy, transport, ICT and trans-boundary water.
This directly supports Africa’s integration and industrialization efforts as well as trade in goods and services and helps to improve the quality of lives of Africans by improving access to infrastructure services – electricity, transport, communications and water.
NEPAD-IPPF provides grants to African countries through regional economic communities (RECs) and specialised regional infrastructure institutions such as power pools to undertake feasibility, technical and engineering designs, environmental and social impact assessment studies, as well as preparation of tender documents and transaction advisory services to make projects bankable for financing and implementation in support of Africa’s socio-economic transformation.
NEPAD-IPPF is a multi-donor special fund hosted by the African Development Bank (AfDB), established under the G8 as part of the support to the NEPAD African Action Plan and is managed in close partnerships with the African Union Commission (AUC) and the NEPAD Agency.
Donors supporting NEPAD-IPPF include Canada, Denmark, Germany, Norway, Spain and the UK. Laying of the pipeline from the oilfields in Lake Albert north-west of Uganda to Tanga port and associated civil works will cost an estimated $12 billion.
It is expected that at the end of construction in 2020, the 24-inch pipeline will deliver about 200,000 barrels of crude oil per day.
According to NEPAD, five energy and power projects were approved, two in West Africa, two in Southern Africa and one in East Africa.
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