EACOP Ltd., the company spearheading the construction and operation of the East African Crude Oil Pipeline (EACOP), has announced the successful closure of the first tranche of external financing for the landmark project. The funding, provided by a consortium of regional financial institutions, marks a significant milestone in the development of the transformative regional infrastructure.
The syndicate of lenders includes the African Export-Import Bank (Afreximbank), 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).
This financial backing underscores the confidence of these institutions in the project’s viability and its potential to drive economic growth in the region.
“This first tranche of external financing is a testament to the strong support for the EACOP project,” reads a statement released by the company. “We are grateful for the commitment of our financial partners and their belief in the project’s ability to deliver significant benefits to Uganda and Tanzania.”
The EACOP, a 1,443-kilometer heated crude oil pipeline, will transport Ugandan crude oil from Kabaale in Hoima to the port of Tanga in Tanzania for export to international markets. With a capacity of 246,000 barrels per day, the pipeline is expected to be a major economic driver for both countries.
Construction of the pipeline is progressing steadily in both Uganda and Tanzania, with a strong emphasis on safety, environmental sustainability, and community engagement.
As of the end of 2024, the project has surpassed the 50% completion mark. To date, the project has generated employment for over 8,000 Ugandan and Tanzanian citizens, provided approximately 400,000 man-hours of training, and injected $500 million into the local economies through the procurement of goods and services.
The EACOP project adheres to the highest environmental and social standards, including those set by the International Finance Corporation and the Equator Principles. The pipeline will be buried and insulated, and powered primarily by hydroelectricity. The marine export terminal in Tanzania will feature a 3 MWp solar plant, further demonstrating the project’s commitment to sustainable development.
EACOP Ltd. is a special-purpose company responsible for the development, construction, and operation of the East African Crude Oil Pipeline. The company is owned by TotalEnergies (62%), Uganda National Oil Company Limited (UNOC 15%), Tanzania Petroleum Development Corporation (TPDC 15%), and CNOOC (8%).