Tanzania hails EACOP’s Sh1.9 trillion local procurement, job creation
Prime Minister Mwigulu Nchemba listens attentively to a briefing on the progress of the crude oil pipeline project from Hoima, Uganda, to Chongoleani in Tanga. PHOTO | COURTESY
Tanga. Prime Minister Dr Mwigulu Nchemba has expressed satisfaction with the East African Crude Oil Pipeline (EACOP) project’s prioritisation of local participation, including employment and domestic procurement.
Dr Nchemba highlighted that the project, which runs from Hoima in Uganda to Chongoleani, Tanga, Tanzania, has spent over $740 million (about Sh1.9 trillion) on local goods and services, significantly boosting national economic growth.
“The EACOP project is not only about constructing infrastructure to transport crude oil from Hoima in Uganda to Chongoleani in Tanzania, but it has also become a key development partner by creating employment opportunities for local citizens, engaging local contractors, and building the capacity of Tanzanians,” he said during an inspection visit to the project site in Chongoleani.
The Prime Minister noted that the project has reached 81 percent completion and has employed about 8,500 Tanzanians, 78 percent of the total workforce of 11,155, including expatriates.
He said that the government is proud of the progress achieved and the shareholders’ commitment to complete the project by mid-2026, enabling crude oil transportation to the international market.
Dr Nchemba also emphasised that the project reflects strong cooperation between President Samia Suluhu Hassan of Tanzania and President Yoweri Kaguta Museveni of Uganda, ensuring that citizens of both countries benefit.
Welcoming the Prime Minister, Deputy Minister for Energy, Ms Salome Makamba, said the Government, which holds a 15 percent stake in the project through the Tanzania Petroleum Development Corporation (TPDC), is satisfied with the progress so far.
She noted that more than 9,000 Tanzanians have been affected and compensated, including 1,688 residents of Tanga Region who received Sh10.49 billion. Others were provided with replacement housing and food assistance for at least one year.
Thousands of Tanzanians have also benefited from free vocational training through Vocational Educational Training Authority (VETA) institutions, while others have received scholarships at the University of Dar es Salaam (UDSM) through collaboration with the project.
Through its Corporate Social Responsibility (CSR) programme, EACOP has funded community initiatives, including a Sh4.4 billion water project, the construction of Donge Health Centre in Tanga, and rural electrification along the pipeline route, supporting increased revenue for the Tanzania Electric Supply Company (Tanesco). The Port of Tanga has also seen notable benefits from the project’s presence.
Tanga Regional Commissioner, Ms Batilda Buriani, said the project has left a significant mark by creating jobs and providing vocational and entrepreneurship training to enable residents to secure employment or engage in self-employment.
The Prime Minister’s delegation included the Permanent Secretary of the Ministry of Energy, Dr James Matarajio, District Commissioners, and officials from TPDC. They were received by EACOP Deputy Managing Director, Mr Emmanuel Blarez, on behalf of Managing Director, Mr Guillaume Dulout.
Mr Mussa Msafiri presented technical updates, noting that construction of four crude oil storage tanks, each with a capacity of 500,000 litres, has reached 87 percent completion, while the marine jetty for oil loading is 57 percent complete. Construction of generators, a solar power system, and fire-fighting equipment is ongoing.
EACOP Local Content Manager, Ms Neema Kweka, said the project takes pride in employing Tanzanians, delivering over 40 million training hours to locals, and spending $740 million on local procurement, thereby supporting domestic economic growth.
The 1,443-kilometre EACOP pipeline runs from Hoima in Uganda to Chongoleani in Tanga, passing through eight regions of mainland Tanzania: Kagera, Geita, Shinyanga, Tabora, Singida, Dodoma, Manyara, and Tanga.
Project shareholders are TotalEnergies (62 percent), TPDC (15 percent), Uganda National Oil Company (UNOC, 15 percent) and China National Offshore Oil Corporation (CNOOC, 8 percent).
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