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Kenya-Uganda oil pipeline investor to be named in April

Source: daily Monitor: A private investor to run the long awaited Kenya-Uganda oil pipeline will be named next month, Ministry of Energy officials have confirmed.

Although the exact date could not be established, the Commissioner Petroleum Supply Mr Ben Twodo, said on February 28, that the financial bids to determine the investor would be opened in Kampala in April.

“So far, no date has been decided, but we expect it next month and the venue had initially been scheduled for Kampala,” Twodo said at his office on Amber House.
Three companies, namely, MISA/ Shell Uganda Ltd, Tamoil East Africa and China Petroleum Pipeline Engineering Corporation are the only remaining bidders who will go to the final stage after three others were disqualified.

The project had attracted 23 firms.
Initially, three other companies who had submitted their technical bids were disqualified. The East African Newspaper on February 27, quoted Kenya Pipeline Company (KPC) officials saying the three firms, namely Petronet East Africa, Zakhem/ARB and Energen Petroleum Corporation of Canada, were disqualified because they did not comply with the tender requirements during the evaluation process. It said one firm was disowned for giving wrong partners.

Twodo said the private investor will run the pipeline on a Build On Operate and Transfer (BOOT) basis. This means the investor will build and manage the pipeline for a period of 20 years.

“We expect the investor in that regard to bring financial resources, managerial and technical expertise to build and operate the pipeline and after some time, transfer it back to the two governments,” he said.
Initial studies for the Kenya -Uganda pipeline extension from Eldoret to Kampala indicate that it was estimated to cover a distance of 320 kilometres. …. More on daily monitor website


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