EACOP Moves Forward Amid Controversy as Uganda–Tanzania Pipeline Works Pass Major Milestones
Kampala, Uganda
The 1,443-km pipeline promises economic transformation — but faces intensifying legal challenges, environmental concerns, and compensation disputes.
The East African Crude Oil Pipeline (EACOP) has entered a decisive phase as construction advances across Uganda and Tanzania, even as opposition from civil society and international activists gains momentum.
EACOP — stretching from Uganda’s oilfields in Hoima to Tanzania’s port of Tanga — is one of Africa’s most significant energy projects. Recent updates from the company indicate that hundreds of kilometres of pipeline have already been welded, and shipments of pipes continue to arrive at storage yards.
Financing Push Achieved
In early 2025, EACOP Ltd announced the closure of its first external financing tranche, backed by regional lenders including:
Afreximbank
Stanbic Bank
KCB Uganda
Several Tanzanian financial institutions
This financing allows contractors to maintain construction schedules and supports community programs along the route.
Local Content & Training
The project reports:
Over 7 million hours of local workforce training
Partnerships with Makerere University, Kyambogo University, and UIRI on technical capacity
Procurement of goods and services from local companies in both Uganda and Tanzania
The Other Side: Displacement & Environmental Fears
Critics argue that EACOP’s benefits come at a steep human and ecological cost:
Thousands of households have reported delayed or inadequate compensation.
Environmental groups warn that the pipeline threatens wetlands, water sources, and biodiversity.
A case before the East African Court of Justice challenges the legality of the project.
International activists continue pressuring global banks to withdraw financing.
Governments, however, insist that environmental risks are being mitigated and that the pipeline is essential for national development.
Why It Matters
Economic Transformation: EACOP is the gateway for Uganda’s oil to reach global markets.
Regional Cooperation: A flagship Uganda–Tanzania infrastructure partnership.
Strategic Revenue: Oil exports could increase national GDP and fund public services.
Local Livelihoods: Jobs, training, and procurement opportunities for thousands.
What to Watch For
- Court Rulings at the East African Court of Justice
- Scale of Environmental Impact & Monitoring Compliance
- International Financing Pressure
- Pace of Pipeline Welding and Station Construction
- Compensation & Resettlement Progress
- Long-term climate policy implications for Uganda & Tanzania
