Rwanda, Uganda Discuss Oil Pipeline

Text of report by Robert Mukombozi entitled “Kampala-Kigali oil pipeline: Government wants equity” published in English by Rwandan newspaper The New Times web site on 12 March; subheading as published

The government is pushing for equitable participation in the execution of the Kampala-Kigali oil pipeline, The New Times has learnt. The state minister for energy and communication, Eng Albert Butare told The New Times that he held talks with the Ugandan energy minister, Daudi Migereko, in Kampala last week that focused on how both countries can partner to provide financial and technical contribution to the venture.

Butare noted that Rwanda had expressed strong support to extend the 80m US-dollar Kenya-Uganda oil pipeline project to Kigali through Uganda’s western districts, and stressed that the ongoing negotiations are a symbol of effecting the country’s interests. “It is all about sharing the effort of extending the oil pipeline from Kampala to Kigali,” Butare said by telephone over the weekend.

He further said that the major modalities especially those that need political blessing had been agreed upon. And, the minister noted that government had prioritized the bulk of options under review, priority among them the decision to use the existing firm in a bid to shorten the timeframe for the implementation of the project. And, as the talks progress, Butare also revealed that the United States Trade and Development Agency (USTDA), the US arm that advances economic development and US commercial interests in developing and middle-income countries, is simultaneously carrying out a feasibility study of the Kigali-Kampala pipeline.

Last year, a Libyan firm, TAMOIL won the concession to build, own and operate the Eldoret (Kenya) – Kampala pipeline. Meanwhile, within two weeks a government team led by the secretary-general of the Ministry of Infrastructure, Vincent Gatwabuyege will visit Uganda and hold comprehensive discussions on the technicalities of the project with their counterparts in the Energy Ministry. The meeting is expected to be preceded by the signing of a Memorandum of Understanding.

Viability of the Kenya-Uganda Pipeline

The 320-km Kenya-Uganda oil pipeline project was declared viable in March 2004, after a final feasibility study, which was concluded at the end of 2001. According to available information the Kenya- Uganda pipeline, which will run from Eldoret in Kenya to Namanve in Uganda, will have a capacity of transporting 220,000 litres per hour. According to a new plan from the Great Lakes countries, the pipeline will replace road tankers as the mode of transportation of oil products from Kenya to Uganda, Rwanda and eastern DRCongo, making petroleum products throughout the region considerably cheaper.

Pundits say prices of fuel products in Rwanda are high partly because of exorbitant road transport costs from the coastal towns of Mombasa and Dar es Salaam in Kenya and Tanzania, respectively, to Kigali.

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