Tanzania Private Sector Foundation (TPSF) has advised Tanzanian and Ugandan companies to form a joint venture to grab opportunities in a major East African Crude Oil Pipeline (EACOP) project from Hoima Uganda to Tanga in Tanzania.
TPSF Executive Director, Francis Nanai made the remarks recently at the oil and gas symposium that brought together stakeholders from Uganda and Tanzania. He said the implementation of the project requires a concerted effort to reap the benefits.
He said as key players in the private sector they need each other to address the challenges that exist in working on the EACOP major project so that can grab opportunities.
He said the project requires significant capital to supply equipment needed by a major contractors, knowledge, and skilled workforce.
“These opportunities offer new challenges that we as members of the private sector should get answers. The issues include raising our capacity to effectively and efficiently supply the materials, equipment and services as may be required by the main contractor. We must also supply the products and services that meet the international standard requirements.
“As private sectors of both countries we need to up the skills of our workforce so they can deliver the services as required by the main contractors as well as financial muscles to enable us to deliver on our assignments,” said Nanai adding all these challenges bring us to one conclusion that we need each other.
Further he said in the private sector they continue to engage with the government through public-private dialogue to address various legal and regulatory impediments that inhibit full exploitation of the opportunities presented by the EACOP project.
“We invite and encourage our brothers and sisters in Uganda to come and invest in our country, since there is political tranquility to enjoy in Tanzania which makes the country investable by all known standards as our president Samia open doors for investment from all over the world as long as they meets government requirements,” said Nanai.
However, Mr Nanai appreciated the role that the two governments have played in ensuring that the local businesses grab the opportunities that come with the project.
He said for instance, “Tanzania we have the Petroleum Local Content Regulations 2017 in the petroleum Act (CAP.392) which compel investors to procure and support the growth of the petroleum industry through effective expansion of local participation in the petroleum operations by creating local jobs and use of locally manufactured goods, works and services to enhance the building of local industries.
He said the regulation intervention is mainly aimed at securing socio-economic benefits that come with mega investment projects and thus ensured that such projects benefit the local economy.
He said that development was especially important considering that Tanzania is endowed with a lot of riches including oil and natural Gas.
Opening the forum, the Minister for Energy, January Makamba called on the people of Tanzania and Uganda to work together and join forces to secure opportunities for the project which has already been implemented in the early stages.
Mr Makamba said many opportunities are arising from the EACOP project so citizens of both countries will have the opportunity to be involved where it will increase their income for individuals and for society as a whole.
Makamba said the EACOP is a very big project in which with the involvement of the private sector the citizens will get direct employment, their business will grow.