Kigali, 12th September, 2014-The governments of Rwanda, Uganda and Kenya under the Northern Corridor integration projects have advertised the proposed Eldoret-Kampala-Kigali pipeline for refined petroleum products.

The three governments are sourcing for an experienced contractor both locally and internationally following the joint public procurement procedures.

The successful bidder will undertake the engineering, procurement, construction, testing and commissioning of the pipeline, a venture whose first phase is expected to be completed within three years.

The Oil pipeline is one the most important Northern Corridor projects that are set to boost regional development with enhanced integration and the construction of the oil pipeline will be completed by 2017.

The first lot will cover the 350-kilometre distance between Eldoret and Kampala while the second will connect the 434km distance to Kigali. According to the technical specifications, the pipeline linking Kampala and Kigali will have storage terminals in Kampala, Mbarara and Kigali.

The pipeline will be having mainline pumps, intermediate pump stations and road/rail loading facilities for tankers at Mbarara in Uganda and Kigali.

Rwanda, like the rest of the tripartite member states, has contributed towards funding feasibility study, tender document preparations and is committed to contributing its share for the project implementation.”

The feasibility study cost around $2 million and the cost was shared equally among the partner states.

In January this year, a London-based firm, Penspen, which specializes in engineering and management services to the oil and gas industry, was awarded the contract to undertake the pipeline’s feasibility study.

The feasibility studies were finalized in August, and the tendering process for the engineering, procurement and construction of the pipeline was advertized in different papers of the member states.

The tender was advertised in the New Times and Imvaho Nshya in Rwanda, Red Pepper in Uganda and the Daily Nation in Kenya and it is open to all competent bidders.

The three governments “agreed to equally source funds and develop the entire project together and Ministers in charge of Finance portfolio of the three partner states are the ones spearheading the mobilization of funds for the implementation of the project according to the Tripartite Agreement.

The first phase will connect Eldoret-Kampala-Kigali and is supposed to be commissioned in 2017 according to the implementation plan and the second phase will be an upgrade of the pipeline depending on the demand.

In Rwanda, the pipeline will enter through Kagitumba in Nyagatare District, Eastern Province to Rusororo Sector, Gasabo District, where the inland terminal will be located.

Once completed, the three-leg pipeline is anticipated to significantly solicit Rwanda’s petroleum transportation by road oil tankers from Nairobi, hence increase in supply, reduced transport costs as well as employment opportunities for Rwandans.

The Kigali terminal will serve as the regional supply port and it is meant to accelerate regional development through investment in infrastructure, trade and other economic integration projects.