Uganda has acquired prime land at Tanga in Tanzania where its officials will be stationed to facilitate oil business between the two countries.
Uganda’s High Commissioner to Tanzania, Ambassador Richard Kabonero, says the move is aimed at strengthening Uganda’s infrastructure diplomacy in the East African region and Southern Africa.
“Yes, it is true. Our mission requested and acquired this strategic land at Tanga where the East African crude oil export pipeline will terminate. Currently, we are processing titles for this land located at Amboni Mwanyungu,” he said.
Mr Kabonero said the value of the land offered by Tanzania is worth $1m.
He added that Uganda can utilise the acquired land acquired in Tanga to construct warehouses and other structures.
Uganda National Oil Company (UNOC) Corporate Affairs chief, Peter Muliisa, said the country “will need presence in Tanga because we will be doing a lot of work there concerning trading of crude and overseeing supervisory activities of pipeline.”
He said UNOC plans to build an office in Tanga before oil production starts.
The acquisition of land in Tanga comes at a time Tanzania and Uganda are expediting plans to construct the 1,443 km oil pipeline from Hoima in Uganda to Port Tanga in Tanzania.
On August 30, 2021, the Uganda cabinet approved the East African Crude Oil Pipeline (EACOP) Bill 2021.
Energy Minister, Ruth Nankabirwa, said the Bill which will soon be tabled in Parliament for legislation contains provisions which will enable effective implementation of the oil pipeline project with Tanzania.