The government of Uganda and Tanzania in an intergovernmental ministerial committee has agreed to sign the Host Government Agreement for the construction of the East Africa crude oil pipeline by the end of June.

The pipeline project is estimated to cost $3.5 billion in total. Out of the pipeline’s total length, just 20 percent will be in Uganda, which amounts to about $700 million. The two countries, Uganda and Tanzania are expected to fund between 30 to 45 percent of the capital expenses through their various national companies.

The East Africa crude oil pipeline will link Homa, Uganda to the port of Tanga, Tanzania on the Indian Ocean. The pipeline is about 1400m, and it’s expected to provide 36,000 direct jobs and 10,000,000 indirect jobs.

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