The company developing Uganda’s East African Crude Oil Pipeline (EACOP) has closed its first round of external financing, marking a crucial step in the $5 billion project.
In a statement released Wednesday, EACOP Ltd confirmed that a syndicate of institutions, including commercial banks and Afreximbank, participated in this funding phase.
Among the financiers are Standard Bank, Stanbic Bank Uganda, KCB Bank Uganda, and Saudi Arabia’s Islamic Corporation for the Development of the Private Sector.
While the statement did not disclose the total value of this initial tranche, it described the successful closing as a “significant milestone.”
Uganda’s Energy Minister Ruth Nankabirwa had previously warned that additional cash injections were necessary to prevent delays in the project, as debt financing had faced obstacles.
Several Western banks, including BNP Paribas, Société Générale, and Barclays, declined to fund the pipeline due to environmental concerns raised by climate activists.
The 1,443-kilometer pipeline will transport crude oil from Uganda’s Kingfisher and Tilenga oilfields near Lake Albert to Tanzania’s Tanga port. It is part of a broader $15 billion energy investment spearheaded by TotalEnergies, China’s CNOOC, and other partners.
A source familiar with the financing confirmed that investors are committed to funding the full $5 billion cost, with additional support secured from Chinese backers. “Oil companies already involved will take both equity and debt. The Chinese are in,” the source told Reuters.
This funding breakthrough brings EACOP closer to completion, ensuring Uganda’s oil export ambitions remain on track.
