“A joint commission for the project has been formed. The bids were submitted at the end of October last year,” said Alam, who also chairs the infrastructure working committee of the Presidential Investors Roundtable.
Three firms bided for the construction of the project: they are China Petroleum Pipeline Engineering Co, Turmoil East Africa Ltd, and a consortium consisting of Shell Uganda and Madhvani International. Mr Alam said the pipeline, which is expected to be operational by late next year, requires the two east African countries to contribute 49% of the cost of construction, while the private developer will contribute 51%. “The major concern is whether this pipeline, as part of improved infrastructure in the region, will significantly affect the pump price of petroleum products in spite of expected increase in efficiency of delivery,” he said. The pipeline will replace road tankers as the mode of transportation oil products from Kenya to Uganda, because it will be both cheaper, and a considerably safer form of transportation.