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Kenya, Uganda Call For Private Investor Bids For New Pipeline


Kenya and Uganda have actually released a joint call for private investors to develop and operate an oil pipe in between both nations, as increasing oil discovers take place in the East Africa area.

The brand-new pipe will reach 352 kilometres from Eldoret in Kenya to the Ugandan resources Kampala, reports Reuters, and is anticipated to cost in the region of $ 300 million.

The governments of the two countries jointly invited quotes from personal business to become the financial investment partner for the job, using Kenyan papers today.

“The pipeline will interconnect with the existing 14-inch diameter pipeline running from Nairobi to Eldoret and should be able to transport products to and from Kampala, Uganda and Eldoret, Kenya including spur line in Jinja,” read the statement.

“The project will also include a common user depot at the pipeline terminal in Kampala,” the governments added.

It is intended that the brand-new pipe will guarantee a more steady, safe and effective method of carrying fuel, while also cutting the considerable transportation prices associateded with over-land shipment.

Kenya oil pipelines

Boosting focus has actually been paid to East Africa on the international sector in recent months, as a cord of oil down payments have been discovered in Ethiopia, Kenya and Uganda. Industry players are now trying positions in the advancement of the brand-new finds– as examining of reserves is recurring, although production has not yet begun.

The most recent ask for proposals follows plans for the construction of the pipeline have currently seen substantial delays, having actually been given to Libyan company Tamoil in 2007, but revoked once more in September 2012 due to shortage of improvement and considerable problems.

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