September 13, 2008

Libyan Government to Set Up Fuel Tanks in Uganda

Text of report entitled "Uganda to get 25 fuel reservoirs" published by state-owned, mass-circulation Ugandan daily The New Vision website on 13 September

The Libyan government is to set up 25 fuel tanks to boost the oil reservoirs in Uganda, Tamoil East Africa project engineer Gamal Buargoub has revealed.

Buargoub said 22 of the tanks will be installed in Kampala while three will be installed in Jinja [east of Kampala] in a move aimed at solving fuel shortages in the country. Uganda currently has only three fuel tanks, all located in Jinja.

Buargoub, in an interview in Kampala on Tuesday [9 September], said the tanks will be part of the 354 km pipeline project from Eldoret [Rift-Valley Province in western Kenya] to Kampala. The project that has dragged on for years is expected to start in two months' time.

The tanks in Kampala will each accommodate between 1.6 million and 18 million litres of kerosene, diesel and petrol. In March, Uganda and Rwanda signed an agreement to extend the oil pipeline from Kampala to Kigali.

The pipeline is to be controlled by the Supervisory Control and Data Acquisition (Scada) computer system used in sensing problems like leakage along pipelines.

"A fibre optic cable will also be installed to ease communication along the line," Buargoub stated.

The Libya Africa Portfolio state-owned company that operates in 19 African countries will fund the pipeline project in collaboration with the respective governments. Buargoub said the pipeline is part of the over 500m dollar investments that the Libyan government has sunk in Uganda. Reports show that the Eldoret-Kampala pipeline is to cost 100m dollars.

Buargoub said five companies had submitted bids for the construction of the oil pipeline.

"We are evaluating the bids. We shall know the cost of the pipeline after the winner has been declared," Buargoub said, adding that Tamoil would run the project for 20 years before handing it over to the respective governments.

The project will save the country on road maintenance costs, in addition to reducing accidents and environmental pollution associated with many fuel tankers plying our roads.

Originally published by The New Vision website, Kampala, in English 13 Sep 08.

(c) 2008 BBC Monitoring Africa. Provided by ProQuest LLC. All rights Reserved.