Standard Bank, one of Africa’s biggest banks, has been under fire for its potential involvement in the controversial East African Crude Oil Pipeline project. The bank says the project will not continue the destructive legacy of fossil fuel projects across the continent but will instead be a progressive development.
Standard Bank is waiting for further environmental and financial clarifications about the East African Crude Oil Pipeline, expected in about two months, before it decides whether it will invest up to $120-million in the controversial project, Kenny Fihla, Standard Bank’s CEO of corporate and investment banking, told Daily Maverick at its Climate Summit on Wednesday.
“What we’ve been asked to do is to consider a possible participation of anything between $100-million and $120-million, which would be just under 10% of the debt funding,” Fihla said.
“We have evaluated the project, we have looked at the financials and we think it is financially viable and hugely profitable. We have looked at the economic impact; how many jobs have been created and whether it is net positive for both the economies — we are comfortable with that,” Fihla said.
The East African Crude Oil Pipeline will run for nearly 1,500km from Uganda’s Lake Albert oilfields to the port of Tanga in Tanzania. The project is already in development and the development of airports, road infrastructure and the drilling of oil has commenced. The insulated pipeline will run underground along with six pumping stations, two in Uganda and four in Tanzania.
Controversy…