Gov’t realises funds for EA pipeline
Uganda has mobilized a 11 trillion shillings loan from the China Export-Import bank, and other Chinese banks to fund the East African Crude Oil Pipeline. The Energy Ministry says a number of other African banks have expressed interest in funding the oil pipeline. An Algerian delegation that met President Museveni yesterday has also declared interest in financing the oil pipeline. The cost for EACOP stands at 18.6 trillion shillings with 60 to 40 per cent debt to equity ratio. EACOP has so far declared funding from Saudi Arabia’s Islamic Development Bank, and Afrexim Bank totaling to $300m (Shs 1.1 trillion). The project has however faced pressure and civil suits from climate activists to halt the pipeline construction over high carbon emissions, and the move to cleaner energy sources.