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The East African : Dec 1st 2014
NOVEMBER 29-DECEMBER 5, 2014 The EastAfrican EAC @ 15 Special advertising section 15 EAC fast tracks power pool integrate all power supply lines in the region. A Kabagambe Kaliisa Parmanent Secretary Ministy of Energy & Mineral Development The pipeline is one of the Northern Corridor Integra on Projects that aims at accelera ng regional development. Upon comple on, the pipeline will serve all the EAC countries in addi on to DRC and South Sudan. This is the second me the countries are invi ng contractors. In 2006 JCC awarded the contract to Tamoil East Africa Limited (TEAL), a Ugandan based subsidiary company to Libyan Arab Investment Por olio (LAIIP). Unfortunately, the company’s performance bond expired before achieving the agreed terms of the contract. Teal had Environmental impact assessment and land valua on completed but the Project Affected Persons (PAPs) had not been compensated. In addi on queries emerged in 2011 over Teal’s legal and financial capaci es to carry on with the project following the insecurity in Libya. Moving forward; they agreed to pursue the project under the EAC framework. Technocrats argue that EAC’s handling of the project will save the countries from sourcing for finances individually, and do so as a block. A new feasibility study is being done for Bujumbura-Kigali pipeline. The power pool is supposed to create power exchange highway for East Africa so that we have the grid of TZ, Kenya , Burundi, Rwanda put together and each country can supply power to a central grid that can flow in in all direc ons. The idea was to have a model similar to that of the European where all countries are interconnected in terms of power supply. This model makes it possible for all the consumers regardless of na on to access electricity even when their own supply has been disrupted because the shortage is filled with supply from another country. The East African power poor nego a ons started in 1994. However, it was not pursued to frui on and the idea was shelved but not abandoned. The project had by then a racted the interest of SADC countries, implying that the interconnec on would have benefi ed more electricity consumers. To be discussed as talks resumes are technical issues like ease of picking, avoiding miscarriage of voltages and standards required for the er years of concentra ng on other issues, countries are renewing talks for the proposed East African Power Pool. This project is expected to A map showing the location of the Kenya power exchange. East African countries are however gradually becoming energy sufficient. At the moment for example Uganda is genera ng electricity from Kiira, Nalubaale and Bujagali as main sources but there are equally smaller hydro-power sta ons that serving the communi es, some of which have not been connected to the na onal grid. A number of other mega hydro--power projects are also under implementa on. These include: South Sudan ‘joins’ EAC in crude oil pipeline project oil pipeline passes through its territory before reaching the port at Lamu. South Sudan’s applica on to join the EAC awaits response from the secretariat. E This is offers alterna ve export route for South Sudan’s crude oil that has in the past suffered a er Sudan closed the pipeline following border disputes. The project also takes into considera on resources that will be discovered in Kenya’s oil province. The project is being pursued under the EAC. Ini ally there were considera ons to have the pipeline move form Hoima through western Kenya to the port of Mombasa. The par cipa on of the countries provides relief to oil companies that have all along preferred to have a crude oil pipeline alongside a refinery. This is because; respec ve governments will be able to help the companies deal with issues of land acquisi on and compensa on to the ven without officially being admi ed into the EAC, South Sudan is already reaping the benefits of corpora on as crude Karuma, Ayago and Isimba. The projects are expected to meet future demands based on popula on growth, urbanisa on and industrialisa on. Demand for electricity is projected to grow at 10 percent per year for the near foreseeable future. The ministry of energy is also stepping up programmes to develop the geothermal poten al of the country. Under the spirit of the EAC, it is picking lesson from Kenya that has well developed geothermal power project. Matovu spokesman for energy ministry. Uganda’s refinery will be built on modular bases, implying that it will start with low capacity of 30,000 barrels of oil, which is the current es mated market demand for the oil in Uganda. That will gradually increase to 60,000 barrels before peaking at 150,000 barrels, according to Mr. Matovu. Oil companies es mate that Uganda can reach 200,000 barrels of oil per day. Uganda has 6.5 billion barrels of oil in place. 1.4 billion barrels is recoverable. The country s ll has 60 percent unexplored areas in the Alber ne which awaits the next round of licensing. Uganda’s crude oil is waxy in nature meaning that it will require hea ng system to maintain constant flow. affected persons. The ques on of land is cri cal give that each country has its own laws governing land. Mid this month, Uganda awarded the contract for a feasibility study to Nagoya and Tokyo listed company; Toyota Tsusho Group for the pipeline. The company has five months to complete the study. “This pipeline engages EAC countries and now South Sudan. That became necessary because the crude oil that we are going to produce cannot all be handled by the first phase of the refinery,” said Bukenya In February, Uganda government signed a Memorandum of Understa ng with oil companies which allowed the commercialisa on of the oil and gas in the country. This means that progress on the export pipeline and refinery had to be ini ated. It is being suggested that the crude oil pipeline could be financed under the Public Private Partnership (PPP) given states interests in the project. Oil companies have in the past in mated that they would welcome partnership with interested governments.
Nov 24th 2014
Dec 8th 2014