Kasaija says $1.8 billion debt for EACOP kickoff won't burden public funds

While speaking to the press on Friday, Energy and Minerals Development Minister, Ruth Nankabirwa said the EACOP project is likely to kick off as a significant part of the needed financing raised through debt financing.

She told journalists that so far, 30 per cent of the 40 per cent of debt has been raised as the hunt for more financing continues. She said part of the debt is expected from the Export-Import Bank of China.

However, a number of anti-fossil fuel campaigners have been courting the Bank against financing the pipeline. Although some banks have indicated that they will not fund the project, Nankabirwa confirmed that some within Africa are likely to lend EACOP.

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Nankabirwa confirmed that the Ministry of Finance is honouring Uganda National Oil Company’s equity payments to EACOP which are estimated at $2.4 billion.

Currently, financing projects like EACOP has been part of the discussion as some of the Western-based banks and insurers opt to fund cleaner energy projects and the so-called energy transition.

It is with this background that some have suggested that the government of Uganda and others should look for funding within their budgets to fund oil and gas developments.

Kasaija, however, told journalists that Uganda will look for other partners to fund its oil and gas development saying that there's no need to panic.