Ugandan private business leaders back EACOP project

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Sat 26 Nov, 2022

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business leaders EACOP project

Ugandan private business leaders have expressed their support to the Lake Albert Oil & Gas Development project, saying it will be of great significance to Uganda‘s domestic market.

This was revealed in a statement signed by 22 Ugandan private business leaders in response to the resolutions raised at the recently concluded Conference of the Parties (COP)27.

“As Ugandan private business leaders, we register our support to the Lake Albert Oil & Gas Development project which will secure the supply of petroleum products to our domestic market, with the construction of a refinery and the commercialization of Liquefied Petroleum Gas (LPG),” the business leaders noted in a statement.

It is worth noting that in April 2021, Uganda and Tanzania signed agreements worth $3.5 billion to kickstart the construction of a crude pipeline East African Crude Oil Pipeline (EACOP) to ship crude oil from Uganda to international markets as well as opening several future opportunities.

The private business leaders are optimistic that the project will generate the much-needed revenue for the country and for Ugandans, which will in turn double Uganda’s gross domestic product (GDP) in five years.

“All other sectors in our country will benefit directly or indirectly from the massive investments which shall reach more than $4 Billion directly spent in country,” they say.

Since the launch of the project, there have been calls from a section of activists and world leaders to halt the project, citing human rights violations and environmental degradation by Uganda and Tanzania.

However, the private business leaders trust that the projects will be executed in compliance with both the stringent regulatory and legal framework put in place and the highest international standards (IFC Performance Standards and UN Guiding Principles on Business and Human Rights).

“It is our view that this will ensure the projects are carried out with proper respect for human rights, minimum environmental footprint, conservation of our biodiversity, and full and fair compensation for land,” they said.

They added, ”For these reasons, we give our unreserved and wholehearted, support for the responsible development of the natural resources Uganda is endowed with, including the associated construction of EACOP pipeline and the refinery. It is only through sustained economic development that Uganda will continue improving the livelihoods of its citizens."