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A new pipeline is planned to transport crude oil from Uganda’s Lake Albert oilfields to Tanzania’s Indian Ocean coast
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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”.
Originally Published by South China Morning Post
