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The EACOP deputy managing director John Bosco Habumugisha led the EACOP delegation to receive the license for the pipeline activities from the director general of Uganda Investment Authority (UIA) Robert Mukiza.
UIA issues investment licenses to domestic and foreign companies under the Investment Code Ac 2019.
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According to Habumugisha, the license is in alignment with International Finance Corporation standards such as environmental and social impact assessment, along with maintenance of proper financial and accounting records, ensuring a gender-sensitive working environment and respect and protection of human rights among others.
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“The investment license speaks to the investors we are looking for at a global level for the financing of the project,” Habumugisha said,
During the meeting, EACOP revealed that it will conclude scouting for debt financing to construct the 1,443-kilometre oil pipeline before the close of 2023.
Habumugisha said the government has made good progress in securing finances for the cost estimates of EACOP which stand between $3.5 and $4b with a 40 to 60 percent equity-to-debt ratio.
This means that around $2.4b (about Shs9 trillion) will be secured as debt, while $1.6b (Shs6 trillion) will be equity financed by shareholders.
The shareholders include Total Energies at 62 percent, Uganda National Oil Company (UNOC) at 15 percent, Tanzania Petroleum Development Corporation (TPDC) at 15 percent, and China National Offshore Oil Corporation (CNOOC) at 8 percent.