Rwanda has issued a warning to Tamoil East Africa Ltd (TEAL), for its delay to begin the construction of a pipeline from Eldoret in Kenya to Kigali through Kampala.
The construction was scheduled to start in 2006 connecting from Eldoret to Kampala, and later extend to Kigali in 2008.
According to the Minister of State for Energy, Eng. Collette Ruhamya, the company has not fulfilled its contractual obligations, resulting in the issuance of the notice.
“We haven’t terminated the contract but instead, Rwanda and Uganda issued a joint notice to TEAL. If they don’t do something in the next six months, we will go ahead and terminate the contract,” said Ruhamya.
According to media reports, technocrats want the East African Community to take over the project which, they said, would enable member countries look for funding as a bloc.
A new feasibility study is in its final stages and funds have been secured for extension of the pipeline up to Bujumbura.
“The study to connect the pipeline from Kigali to Bujumbura has been finalised but if we continue working with Tamoil, then we may never realise the Kigali-Bujumbura connection,” the Minister said.
Tamoil East Africa’s chairman, Habib Kagimu, recently told the media that his company has so far spent US$12 million to hire engineers. However, Ruhamya refuted the claim reiterating that nothing had been done so far.
Media reports have also quoted Uganda’s Energy Minister, Irene Muloni confirming that the two governments have given a six-month notice to the company as per the terms of the agreement.
“The project will now be pursued under the East African Community framework,” Muloni confirmed.