The African Development Bank (AfDB) has granted $1 million to the East African Crude Oil Pipeline (EACOP) project. Half of the total amount is for Uganda while the other is for Tanzania.
The grant is for the Micro, Small and Medium Enterprises (MSMEs) roped in the $3.5 billion project that is to start in 2021, as the grant is to enable the firms to access the new market opportunities and build linkages with larger, national, regional and international companies.
The project will support inclusive private sector growth and create about 500 jobs along the Ugandan portion of the pipeline. It is to link at least 70 business enterprises or other relevant businesses transactions taken on the pipeline.
The Bank said it is to contribute $500,000 as a grant while the Ugandan government through the petroleum body will provide counterpart funding.
Excerpts from the AfDB’s release statement:
“The overall objective is to help develop the capacity of local enterprises in Uganda.”
“A similar project is being finalized on the Tanzanian side of the border.”
“The target is to have at least 100 local micro businesses in Tanzania and Uganda trained to do business on the pipeline project.”
The construction of the 1,445-kilometre East African Crude Oil Pipeline (EACOP) is to commence in the first half of next year.