Informer East Africa accepts donations to continue delivering daily news to you.

Donation Amount. Min £2

The East African Crude Oil Pipeline (EACOP) has seen Western banks pull out of financing the project over environmental concerns. Photo: Handout

China steps in to save Uganda oil pipeline as Western lenders back out over environmental concerns

  • A new pipeline is planned to transport crude oil from Uganda’s Lake Albert oilfields to Tanzania’s Indian Ocean coast
  • Several major Western banks have pulled out of investing in the project due to pressure from environmental groups 
Chinese lenders will provide more than half of the US$3 billion debt that Uganda requires to build a crude oil pipeline after financiers from the West backed out following strong opposition from environmental groups.
According to Uganda’s Ministry of Energy and Mineral Development, the East African nation expects to finalise talks with the China Export & Credit Insurance Corporation (Sinosure) and the Export-Import Bank of China (Eximbank) by next month to finance the construction of the East African Crude Oil Pipeline (EACOP).
Irene Bateebe, the ministry’s permanent secretary, said Sinosure, the Chinese state-owned provider of export credit insurance, is working with Eximbank to provide funding for the pipeline, which “is the largest portion – above 50 per cent of the debt”.

“We are at the tail-end of the discussions [with Chinese lenders] for financial close. We are confident that by the end of October of this year, we will close the debt component and we would have mobilised most of the funding for the project,” Bateebe said on Friday. 

Uganda needs about US$5 billion for the pipeline running from Lake Albert’s oilfields to a storage and loading terminal in the Tanzanian port of Tanga. Financing is set at a 60:40 debt-to-equity ratio, meaning US$3 billion will be secured as debt with the remaining US$2 billion to be financed by shareholders through equity contributions.

TotalEnergies controls a 62 per cent interest in the pipeline; the Uganda National Oil Company holds 15 per cent; Tanzania Petroleum Development Corporation has 15 per cent; leaving 8 per cent for Chinese oil giant China National Offshore Oil Corporation (CNOOC).


The 1,443km (896-mile) pipeline would transport crude oil from Uganda’s Lake Albert oilfields in northwest Uganda to Tanga in Tanzania on the Indian Ocean where the oil would then be sold onwards to world markets. 

Besides the Chinese lenders, Bateebe said Uganda expects to get some funding from Saudi Arabia’s Islamic Development Bank and some African banks, including the African Export-Import Bank.

Bateebe said initially many Western-backed lenders had expressed interest in financing the pipeline but pulled out due to strong opposition from environmental and human rights groups who have said the oilfields and pipeline threaten the region’s fragile ecosystem and the livelihoods of thousands of people. Further, environmentalists say Uganda is going against the global push for energy transition away from fossil fuels. By Jevans Nyabiage, South China Morning Post

About IEA Media Ltd

Informer East Africa is a UK based diaspora Newspaper. It is a unique platform connecting East Africans at home and abroad through news dissemination. It is a forum to learn together, grow together and get entertained at the same time.

To advertise events or products, get in touch by info [at] informereastafrica [dot] com or call +447957636854.
If you have an issue or a story, get in touch with the editor through editor[at] informereastafrica [dot] com or call +447886544135.

We also accept donations from our supporters. Please click on "donate". Your donations will go along way in supporting the newspaper.

Get in touch

Our Offices

London, UK
+44 7886 544135
editor (@)
Slough, UK
+44 7957 636854
info (@)

Latest News

Tanzania's mega hydropower project gets connected to national grid

Tanzania's mega hydr...

DAR ES SALAAM, Dec. 2 (Xinhua) -- Tanzania's power utility company on Saturday announced that the c...

Wetangula Calls For Factual Reporting And Media Self-Regulation

Wetangula Calls For...

He stressed the importance of media independence and urged players to maintain objectivity amidst ev...

Uganda Authorities Decided to Retain Minerals Export Ban

Uganda Authorities D...

SEATTLE (Scrap Monster): The Ugandan Minister of State for Energy Peter Lokeris declared that it wil...

AIDS: Tanzania makes progress to end epidemic by 2030

AIDS: Tanzania makes...

Tanzania is prioritizing early testing efforts and effective treatments to meet the global target o...

For Advertisement

Big Reach

Informer East Africa is one platform for all people. It is a platform where you find so many professionals under one umbrella serving the African communities together.

Very Flexible

We exist to inform you, hear from you and connect you with what is happening around you. We do this professionally and timely as we endeavour to capture all that you should never miss. Informer East Africa is simply news for right now and the future.

Quality News

We only bring to you news that is verified, checked and follows strict journalistic guidelines and standards. We believe in 1. Objective coverage, 2. Impartiality and 3. Fair play.

Banner & Video Ads

A banner & video advertisement from our sponsors will show up every once in a while. It keeps us and our writers coffee replenished.