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Museven Vows to Extend “Magufulification” to Uganda Over Pipeline Delay


Staff Writers, Kampala and Dar es Salaam

In what may be called “the penetration of Magufulification effects in Uganda”, President John Magufuli of Tanzania has asked his Ugandan counterpart President Yoweli Museveni to dissolve the Uganda Revenue Authority (URA) leadership for delaying the Hoima-Tanga Oil pipeline over tax issues.
In Tanzania Museveni witnessed the inaugaration of Nyerere Building and held formal talks with Magufuli

President Magufuli has in the period of three years in power changed five times the leadership of Tanzania Revenue Authority (TRA) to make the country do business fairly locally and internationally.     

Speaking in Dar es Salaam this week during the Uganda-Tanzania Business Forum organised by the business community from the two countries with the aim of boosting bilateral trade, President Magufuli urged Museveni to ensure his tax man sacrifices some short-term tax benefits with long-term projections.

“Sacrifice some of the short term gains for the long term benefits and your URA officials should not delay you, actually we wanted this pipeline to be named Kaguta Pipeline when it opens, “said Magufuli amid laughter’s from Museven himself.

The Magufuli’s call came after French giant Total E&P, the lead developer on the East African Crude Pipeline (EACOP), last week announced all activities down and upstream the project would be stopped following the withdrawal from the partnership of another partner, Tullow Oil.   

The firm cited “uncertain business” environment in Uganda following a collapse of a deal for Tullow Oil Company to sell its stakes to Total and China National Offshore Oil Company (CNOOC), technically referred to us as farm- down, due to unresolved tax issues.  

Reacting to President Magufuli’s call, President Museveni said Uganda will not be the cause and obstacle of the implementation of the project. He assured President Magufuli that all measures will be taken to ensure the project is resuming as arranged.

“I agree we need to do things faster and I can assure you this project will not stop. The problem in Uganda you can survive even if you are not bright unlike in other countries,” joked Museveni.

What measures will be taken by President Museveni after President Magufuli’s call to dissolve the URA is the matter of time, stakeholders are now waiting to see what steps will be taken in the near future.  

The 1,445km East African crude oil export (EACOP) pipeline is being constructed between Kabaale in the Hoima District of Uganda and Chongoleani in Tanga, Tanzania. On completion, it will become the world’s longest heated crude oil export pipelines.
The Governments of Uganda and Tanzania signed a $3.5bn inter-governmental agreement in May 2017 for the development, which is expected to have an export flow rate of 216,000 barrels a day.

CNOOC, Total, and Tullow Uganda have formed a joint venture (JV) to develop the pipeline in conjunction with the two governments. A foundation stone-laying ceremony for the project was held at Chongoleani in August 2017 and at Hoima in November 2017.

First oil was expected by the end of 2020 and the project is expected to create over 10,000 jobs during construction.

  

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