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US$65 Million Contracts Up For Grabs As EACOP Construction Sets In

After years of foot-dragging between the governments of Uganda and Tanzania, the construction of the East African Crude Oi pipeline has been scheduled for early 2024.

The exciting part of it is that contracts worth over sixty-five million dollars are up for grabs. The deals on offer are different from the ones already given up for early civil works for the longest-heated crude oil pipeline.

China Petroleum Pipeline Engineering Company Ltd (CPP), was contracted to construct the Pipeline and Above the Ground Installations (AGI) in Uganda and Tanzania.

CPP’s National Content Manager, Matiya Bagatya told the just concluded 4th Annual National Content Conference 2023 that the project has reached an exciting moment for Ugandans to earn from $65 million deals.

The company plans to advertise the available contracts by the beginning of next week and award all the jobs to the contractors by March 2023. Some of the huge contracts for grabs include catering services at the different camps being put between Kabale in Hoima and Kyotera.

There are also jobs in Human Resources Services, Health and safety, and security services.

“Opportunities will be opening up as we head to the main works. We also have earthwork for the pipeline. This has been advertised in the papers. I’m sure that the advert for earthwork for the pipeline will not run again” said Bagatya. There will be four main camps from Hoima to Mutukula border over the 296 kilometers of the pipeline in Uganda.

These will be located in Sembabule, in Mubende, Kakumiro and Kyotera districts. There will be another camp in Butiaba and another one at Kabaale in Hoima.

“Let us be on the lookout for these opportunities. This is our generation project. Let us partake in whatever comes our way. We are lucky we have the legal regimes to help us to participate” Bagatya urged.

In terms of employment, CPP expects that about 67% of the employees should be Ugandans. “So there are a lot of opportunities in terms of employment for management, technical and unskilled. Our commitment for the unskilled is 100%. That is given,” revealed Bagatya.

CPP has budgeted for over 55 million dollars to be spent on goods and services. Os far, less than five million dollars has been spent on the project. Upcoming Opportunities In the next month or so, there will be tendering and award of contracts for camp management. Here, opportunities in human resources management will again be awarded.

These will be different from those awarded during early civil works. Ugandans offering waste disposal and medical services are also expected to cash in provided that they meet the standards. Others on offer include office supply and fuel supply jobs.

1500 Jobs for grabs

Over 1500 jobs will be advertised for people to work at the six construction camps. If there are Ugandans interested in offering catering services, this is the opportunity we have been waiting for,” said Bagatya The EACOP project is being developed and will be operated by EACOP Ltd, a company composed of TotalEnergies SE, UNOC, the Tanzania Petroleum Development Corporation (TPDC), and the China National Offshore Oil Company (CNOOC).

Engineering Procurement Construction and Commissioning Management (EPCCM) Tier 1 contractors for the EACOP Project are managed by Woley. The engineering aspect of the pipeline is about 65% complete.

David Bishop, piping designer, and National Content Manager at Worley said they have issued 103 out of the 120 purchase orders.

“There are 14 purchase orders to be placed in 2024. So far, five Ugandan firms and joint ventures have won certain purchase orders on the EACOP project to an approximate value of 7.5 million dollars,” Bishop revealed.

Two Ugandan firms are supplying equipment to the Tanzanian side of the project. Tanzania will have the longest part of the pipeline. EACOP is a 24 inches diameter pipe that will be buried 2 meters below the ground. This is intended to reduce on the ground footprint and to allow the natural ecosystem to rejuvenate.

Initially, the contractors will require 30 30-meter wide land area during the construction phase for ease of movement of equipment and erection of temporal structures, but that will be reduced to 10-meter when the pipeline and other installations have been completed.

Olivier Foulonnneau, Project Control Manager EACOP revealed that they have so far placed line pipe supply with PCK and the remains contracts of the above-ground infrastructures and pipeline construction contracts.

“So all our main contractors are ready to go and are already placing expressions of interest and calls for tenders,” Foulonnneau said the pipes are being produced in China with some of the pipes already shipped on the way to Tanzania where they will be offloaded and transported by trucks. When the pipes arrive in Tanzania, they will be coated and insulated ready for laying.

China Petroleum Pipeline Engineering Company said that they will need 24 months for the construction period, and another three months for commissioning, with a warranty period of 24 months.

The other project contractors that include , Schneider Electric, and Bollore, among others have all committed to strict adherence to international standards on proper project management and controls, interface management, health, safety, social and environmental including adherence to national and local content requirements.


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