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Tanzania, EACOP Project Company Initialize Host Government Agreement

The Government of Tanzania and the East African Crude Oil Pipeline (EACOP) project company have initialized the Host Government Agreement (HGA).

This s milestone towards the implementation of the EACOP project represents yet another successful step in the process following the initialization of Uganda HGA on September 11, 2020.

The development was announced in a statement issued by the EACOP on Monday.

The Tanzanian President John Pombe Magufuli and his Ugandan counterpart Yoweri Museveni met together at Chato in northern Tanzania on September 13, 2020 in order to resolve the harmonization issues between the two countries.

During a ceremony in Chato, both parties agreed to address the then pending issues to expedite works on the $3.5 billion project.

Both parties reached a consensus that “each State party expeditiously concludes the Host Government Agreement with the East African Crude Oil Pipeline project company.”

Both leaders agreed that, “each State party commences negotiations to all pending agreements with immediate effect.”

Museveni’s trip to Tanzania came just two days after the Government of Uganda and French company, Total, concluded and signed the Host Government Agreement for the oil Pipeline project.

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The state parties are required to execute Host Government Agreements, executed between each State party and the EACOP project in order to implement the intergovernmental agreement for EACOP system which was signed between Uganda and Tanzania on May 25, 2017.

In early October, representatives of both Tanzania and East African Crude Oil Pipeline project came together in Arusha to conclude the relevant negotiations for the Tanzanian HGA ensuring continued commitment to national laws and international best practice standards.

According to the Monday statement issued by EACOP, the EACOP and the Government of Tanzania shall continue to work together towards a successful implementation of EACOP project.

The oil pipeline will start in Buseruka sub county in Hoima district and run for 1,445km to the Tanzanian port of Tanga.

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