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Tanzania and Uganda have signed a framework agreement for implementation of the 1,403 – kilometre pipeline project that will transport crude oil from Hoima in Uganda to the Tanzanian port of Tanga.
The agreement on the 3.55 billion US dollar project was signed in Kampala recently by Tanzania’s Minister for Constitution and Legal Affairs, Prof. Palamagamba Kabudi and Uganda’s Minister for Energy, Eng. Irene Muloni.
An official at Uganda’s ministry of energy told the media that the agreement covered terms on tax incentives for the project, implementation timelines, the size of the pipeline and local content levels.
The 24-inch diameter pipeline, which will be heated to keep the highly viscous crude oil liquid enough to flow, will begin in landlocked Uganda’s western region and terminate at Tanzania's Indian Ocean seaport of Tanga.
A statement issued by Tanzania’s State House later said the event was a key milestone for the project, which is expected to create 1,000 jobs and to be completed in 2020.

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