The $5 billion East African Crude Oil Pipeline (EACOP) project, aimed at transporting oil from Uganda’s Lake Albert to Tanzania’s Tanga port, is facing significant financing challenges. Concerns over environmental impacts and potential displacement of local communities have led six Western banks, including BNP Paribas and Barclays, to withdraw funding for the project. This resistance has prompted project stakeholders to seek alternate funding, with Uganda’s Minister of Energy, Ruth Nankabirwa, recently traveling to China to meet with potential investors. According to reports, the situation has also led stakeholders, such as TotalEnergies and China National Offshore Oil Company, to increase their equity contributions from the previous 40% to almost 52%. TotalEnergies has committed an additional $400 million, while Uganda and Tanzania have also pledged more funds to prevent project delays. With increased equity commitments, stakeholders hope to move the EACOP project forward despite the financing obstacles.
SOURCE: BUSINESS INSIDER