Museveni’s visit to Dar rescues oil pipeline deal, sets project timelines
Monday March 6 2017
Uganda's President Yoweri Museveni (centre left) with his counterpart John Magufuli when he arrived in Dar es Salaam. PHOTO | UPP
President Museveni returned to Kampala with a major victory after his visit ensured “the only impediment” that was still facing the $3.5 billion oil pipeline was removed.
The incentive that among other things lured Uganda to choose the southern route is the tariff of $12.2 per barrel of oil that Uganda will pay to move its crude oil through Tanzania, which Ms Muloni says was “the best we got.”
The EastAfrican has learnt that in a bid to hijack the deal from Kenya, which also discovered oil in the northern region, Tanzanian officials were willing to throw sweeteners into the deal, which included free land and a fair tariff.