Who Benefits From East African Crude Oil Pipeline (EACOP)

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A lot has been done. The host countries have signed the Inter-government agreement (IGA). And the USA based firm, Gulf Interstate Engineering (GIE) has finished the Front-End Engineering Design (FEED) study for the East African pipeline project.

The EACOP construction work will begin shortly once the final Investment decision (FID) is reached. The key question is who benefits from this prestigious project? Here are the beneficiaries of the proposed East African pipeline project.

1.Companies
The East Africa Crude Oil pipeline provide enormous opportunities for international and indigenous s service providers seeking to offer services and goods in the project. Service provider will benefit by getting business that will increase profit margin to the companies as the project provides vast opportunities across different sector of economy.

Read.Seven Reasons To Start A Petrol Station Business In Tanzania

2.Individuals
The individual will benefit from the job opportunities emerge in East African crude oil pipeline project. The EACOP will hire approximately 10,000 during the construction phase. This includes skilled workers, semi-skilled workers, and casual workers.

During the construction phase of the proposed EACOP project, indigenous casual workers will be employed from each district the pipeline passes. So this will improve the development of local capacity through technology transfer. Also, the proposed EACOP will create short-term employment of about 2- 3 years. Example of jobs that will be created are welders, heavy equipment operators, truck drivers, mechanics, site engineers, construction manager, construction laborers and more.

Also Read.New Opportunities In The East African Crude Oil Pipeline(EACOP)

3.Host Countries
The proposed EACOP project will have long-term economic benefit for Uganda and Tanzania specifically during construction phase include:

  •  Improvement of Infrastructure through the construction of new access roads, bridge and also upgrading existing ones
  • The 3.5 USD investment of the EACOP construction will be the major source to increase direct foreign investment in both countries by 60 percent
  • Improving GDP for both countries through taxes
  • Also, the EACOP project will attract more investors for the exploring oil and gas resources in the countries.
  • The increase of logistic activities in Tanga port in Tanzania. Also, the Tanga port will experience more US 600 million direct investments in establishing new jetty, storage tanks, and supporting facilities.

4. Communities
The local communities along the EACOP route will benefit from various training and education program such as road safety, welder training. Also, the small towns along the pipeline’s path are likely to experience the local business boom as those working on the pipeline will stay, in the construction camps, local hotels, drink in local bars. And spend money on the entertainment.

 

Will You Gain Or Lose Once The EACOP Project Go Forward?

Opportunities are abundant in the proposed East Africa crude oil pipeline (EACOP) project that you can venture into your irrespective profession. But power goes to those who can uncover and monetize those key opportunities at a rapid pace. The sad reality is that you are going to be left behind if you would not utilize key opportunities emerge in the project.

By Hussein Boffu

 Hussein. Boffu@tanzaniapetroleum.com

 +255655376543/ +255768183677