She said the law will ease the Implementation of the Intergovernmental Agreement (IGA) between Uganda and the United Republic of Tanzania, signed on May 26 2017 and the Host Government Agreement (HGA), which was inked between Uganda and the EACOP Company.
“Over the next few days, the MPs will interact with the Oil and Gas technical team and the learned Attorney General to understand the various aspects of the bill,” Nankabirwa told members of the Parliamentary Media Association on the East African Crude Oil Pipeline (EACOP) (Special Provisions) Bill, 2021 at the parliament conference hall.
The media interaction was presided over by the Government Chief Whip Thomas Tayebwa and attended by the Attorney General Kiryowa Kiwanuka.
Nakabirwa said her ministry and other stakeholders in the Oil and Gas sector have started interacting with the parliamentary committee on Environment and Natural Resources (ENRC), which is processing the draft law.
The bill was expeditiously handled by cabinet and approved on August 30, 2021. It was published in the Uganda Gazette on October 1 2021 and tabled in parliament for its first reading on October 5, 2021, before it was forwarded to the parliamentary committee for scrutiny.
Nakabirwa said the EACOP project has the full backing of the governments of Uganda and the United Republic of Tanzania.
“This has been demonstrated through the unwavering support of His Excellency Yoweri Kaguta Museveni of Uganda and Her Excellency Samia Suluhu Hassan of Tanzania and her predecessor, the late John Magufuli.”
The minister said the law is needed to ease the development of the oil pipeline and eventual oil production because through the IGA and HGA, the two states and the project sponsors realised that the current legal framework in Uganda and Tanzania does not fully support the lawful and effective implementation of the EACOP Project.
Both the Intergovernmental Agreement (IGA) and the Host Government Agreement (HGA) have made the enactment of an enabling legislation a pre-condition to ensure the proper implementation of the project in the two sister countries. Tanzania has already enacted the required legislation for the implementation of EACOP and it is now critical that Uganda, which is the resource owner, expeditiously does the same.
“The enabling law enacted by Tanzania is consistent with the IGA and HGA that were agreed upon. Therefore, it is expected that the same must be achieved in Uganda for the project to progress,” Nankabirwa stressed.
She said EACOP is a complex integrated cross border pipeline whose successful implementation can best be achieved with an aligned legal and regulatory regime.
Once enacted, she said EACOP Act will ensure the lawful implementation of the EACOP Project in Uganda and give reassurance to investors of government’s commitment to fulfilling its obligations under the HGA.
Uganda has already started benefiting from the EACOP project through the tier one contracts that have been conditionally awarded by the oil companies, pending enactment of enabling legislation. These contracts incorporate national content through which Ugandans and Ugandan companies are meant to benefit.
“The government of Tanzania has taken positive steps to meet its obligations under the treaty (IGA), including fast-tracking the enabling legislation in Tanzania, committing to 15% shareholding in the pipeline company by their state entity and providing land in Tanga for the establishment of the port required for the project,” Nankabirwa said.
“We have told ENRC and the 11th Parliament that they now have the privileged opportunity to unlock Uganda’s oil and gas sector and strengthen Uganda’s relations with Tanzania through the expeditious enactment of the EACOP Bill,” she stressed.